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Inter Parfums (IPAR) Gains on Alliances & Product Launches

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Inter Parfums, Inc. (IPAR - Free Report) looks solid on the back of product launches to boost assortment strength. The provider of fragrances and related products is benefiting from brand strength that yielded in 2021. The company is on track to expand its business through strategic partnerships.

Inter Parfums’ 2022 top-and bottom-line views reflect year-over-year growth. Inter Parfums anticipates net sales of approximately $975 million, reflecting growth from $879.5 million reported in 2021. Management expects earnings per share (EPS) of $3.00 for 2022, higher than EPS of $2.75 in 2021. The Zacks Rank #2 (Buy) company’s shares have rallied 22% in the past six months against the industry’s 32.7% decline.

Let’s discuss this in detail.

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Strategic Partnership Holds Key to Growth

Inter Parfums is on track to expand its business through new licenses or acquisitions. In December 2021, Inter Parfums, through its subsidiary Interparfums Italia, signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. The partnership is aimed at creating, developing and distributing fragrances and fragrance-related products under the Emanuel Ungaro brand. In October 2021, Inter Parfums had finalized the agreement with Salvatore Ferragamo S.p.A. Per the agreement, Inter Parfums holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.

In September 2021, Inter Parfums entered into a long-term global licensing agreement with G-III Apparel Group, Ltd. (GIII - Free Report) to create, develop as well as distribute fragrances and related items under well-known brands like DKNY and Donna Karan. We note that G-III Apparel designs, sources and markets women's and men's apparel globally. GIII continuously strengthens its power brands through innovations as well as partnerships and licensing agreements. G-III Apparel is investing in data analytics capabilities to identify consumers across channels and boost their shopping experiences.

Coming back to Inter Parfums, it has been gaining on its strategic partnerships with Origines-parfums as well as Moncler SpA. In July 2020, Inter Parfums’ majorly-owned subsidiary, Interparfums SA acquired 25% of Divabox’s capital. Notably, Divabox is the owner of Origines-parfums, which is a renowned French company in the online beauty market. Prior to this, Interparfums SA signed an agreement with renowned luxury brand, Moncler SpA in June 2020. The deal gave Inter Parfums rights to fragrance-related items in Monclermono brand stores along with few other specialty shops, department stores and duty-free shops.

Product Launches on Track

In its last earnings call, Inter Parfums highlighted that its debut scents from Moncler, Moncler Pour Homme and Moncler Pour Femme, which were previewed in 2021, are now launching at nearly 3,000 doors. Inter Parfums is adding a new flanker to the Montblanc Legend line. Management highlighted that the Jimmy Choo Man line and I Want Choo will be joined by a sister scent. Inter Parfums is on track to debut new men’s pillars for GUESS, Coach and Boucheron in 2022. The company’s other brands like Ferragamo and Ungaro will expand through flankers and extensions.

All said, we believe that Inter Parfums’ well-knit product launches coupled with gains from strategic alliances are likely to keep its growth story going.

Looking for Other Solid Staple Stocks? Check These

Some other better-ranked stocks are Sanderson Farms, Inc. and Pilgrim’s Pride (PPC - Free Report) .

Sanderson Farms, the producer of fresh, frozen and minimally-prepared chicken, currently sports a Zacks Rank #1 (Strong Buy). Shares of SAFM have dropped 4.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Sanderson Farms’ current financialyear sales and earnings per share (EPS) suggests growth of 18% and 56.1%, respectively, from the year-ago reported number. SAFM has a trailing four-quarter earnings surprise of 46.8%, on average.

Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products, carries a Zacks Rank #2. Shares of Pilgrim’s Pride have moved down 17.7% in the past six months.

The Zacks Consensus Estimate for Pilgrim’s Pride’s current financialyear EPS suggests growth of 19.7% from the year-ago reported number. PPC has a trailing four-quarter earnings surprise of 24.9%, on average.


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Pilgrim's Pride Corporation (PPC) - free report >>

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Inter Parfums, Inc. (IPAR) - free report >>