Inter Parfums, Inc. ( IPAR Quick Quote IPAR - Free Report) released record sales numbers for first-quarter 2022. For the three months ended Mar 31, 2022, net sales surged 26% to $250.7 million compared with $198.5 million reported in the year-ago quarter. At comparable foreign currency rates, first-quarter net sales rallied 30%. The company’s Europe-based product sales came in at $182.2 million, up 14% from 2021 levels. U.S.-based product sales amounted to $68.5 million, surging 77% from first-quarter 2021. Image Source: Zacks Investment Research Brand Strength Fuels Growth
Inter Parfums’ largest brands delivered solid sales performance. Montblanc, Jimmy Choo, Coach and GUESS brand sales increased 22%, 7%, 22% and 36%, respectively, during the first quarter of 2022. Management debuted Montblanc Legend Red, a new Coach signature scent extension and GUESS Uomo during this time. These debutants contributed to the double-digit brand sales gains. The company’s mid-sized brands like Abercrombie & Fitch, Kate Spade, Oscar de la Renta and Van Cleef & Arpels also delivered double-digit sales gains. Additional sales from initial product roll outs from MCM and Moncler brand were also an upside. Initial sales of Ferragamo and Ungaro legacy scents also drove the quarterly sales.
Quarterly sales increased 12% in North America, while the same increased 41% across the Western Europe and Asia/Pacific markets. Sales in the Middle East, Central and South America and Eastern Europe increased 27%, 38% and 13%, respectively. Management highlighted that the travel retail business is starting to pick up the pace. The strong dollar against the euro dampened sales generated by European brands. The company’s U.S. distribution subsidiary for European-based products witnessed issues associated with shipping. These factors affected Inter Parfums’ U.S. sales of European brands in the quarter under review. All said, Inter Parfums is impressed with its solid first-quarter performance and believes that its brands are well-positioned to cater to elevated demand in the fragrance space. Management is optimistic about its upcoming launches. The company has several brand extensions scheduled to be launched through 2022. It will also launch Boucheron Singulier and Coach Open Road, new men’s pillars, during the back half of 2022. Management expects Donna Karan and DKNY fragrances to join its brand portfolio in July. Outlook Reaffirmed
The company reiterated its 2022 view, which reflects year-over-year top-and bottom-line growth. For 2022, Inter Parfums anticipates net sales of approximately $975 million. The metric reflects growth from $879.5 million reported in 2021. Further, management expects earnings per share (EPS) of $3.00 for 2022. The company reported an EPS of $2.75 in 2021. The guidance is based on the assumption that no major resurgence in coronavirus cases and the current level of the average dollar/euro exchange rate prevails.
Shares of the Zacks Rank #2 (Buy) company have increased 7.3% in the past year against the industry’s 35.6% decline. 3 Hot Staple Bets
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McCormick & Company ( MKC Quick Quote MKC - Free Report) , Sysco Corporation ( SYY Quick Quote SYY - Free Report) and Pilgrim’s Pride ( PPC Quick Quote PPC - Free Report) . McCormick is one of the leading manufacturers, marketers and distributors of spices, seasonings, specialty foods and flavors. It presently carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here The Zacks Consensus Estimate for McCormick's current financial year sales and EPS suggests growth of 5% and 3.9%, respectively, from the year-ago period’s reported figures. MKC has a trailing four-quarter earnings surprise of 7.3%, on average. Sysco, the marketer and distributor of food and related products, currently carries a Zacks #2. SYY has a trailing four-quarter earnings surprise of 3.7%, on average. The Zacks Consensus Estimate for Sysco’s current financial year sales and EPS suggests growth of 30.4% and 120.1%, respectively, from the corresponding year-ago period’s reported figures. Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products, carries a Zacks Rank #2. PPC has a trailing four-quarter earnings surprise of 24.9%, on average. The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial year EPS suggests growth of 21.9% from the year-ago reported number.