Inter Parfums, Inc. ( IPAR Quick Quote IPAR - Free Report) is likely to register bottom-line growth when it reports second-quarter 2022 earnings on Aug 9. The Zacks Consensus Estimate for quarterly earnings has jumped from 73 cents to 98 cents a share in the past 30 days, indicating a 38% surge from the figure reported in the prior-year quarter. This fragrances and related products company has a trailing four-quarter earnings surprise of 41.4%, on average. IPAR delivered an earnings surprise of roughly 17% in the last reported quarter.
Inter Parfums is on track to expand its business through new licenses or acquisitions. The company has been gaining from its strategic partnerships and product launches. Inter Parfums concluded its agreement with G-III Apparel Group, Ltd. to become the exclusive worldwide licensee for the Donna Karan and DKNY fragrance brands, effective Jul 1, 2022. In December 2021, Inter Parfums signed a 10-year exclusive global licensing agreement with Emanuel Ungaro through its subsidiary, Interparfums Italia. In October 2021, Inter Parfums finalized the agreement with Salvatore Ferragamo S.p.A. Per the agreement, IPAR now holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes. These alliances have been working well for the company.
However, the company has been facing several challenges, including inflation, supply-chain disruptions, lockdowns, store closures, transportation issues, sanctions and currency headwinds. Apart from these, the slow recovery of international travel, logistics challenges in the United States and the war in Eastern Europe have been hurdles. Q2 Sales Numbers
Inter Parfums recently released record sales numbers for the second quarter of 2022. For the three months ended Jun 30, 2022, net sales surged 18% to $244.7 million compared with the $207.6 million reported in the year-ago quarter. At comparable foreign currency rates, second-quarter net sales rallied 24% year over year. During the quarter, Inter Parfums’ Europe-based product sales came in at $166.3 million, up 3% from the 2021 levels. U.S.-based product sales amounted to $78.4 million, surging 69% from the second quarter of 2021.
The company highlighted that sales in its U.S. operations were impressive, with comparable quarterly gains from GUESS?, Abercrombie & Fitch, Oscar de la Renta and MCM rising 39%, 40%, 35% and 56%, respectively. Additional sales from Ferragamo fragrances also contributed to the upside. Further, legacy scents and flankers drove gains in other brands. Management launched new flankers, including Authentic Moment by Abercrombie & Fitch, and a collector’s edition of its MCM scent in the quarter under review. Also, the company launched Uomo by GUESS? in this period. Talking about the European operations, Inter Parfums highlighted that a rise in the dollar masked the gains of well-known brands. However, brands like Montblanc, Jimmy Choo and Coach rose 6%, 4% and 13%, respectively, in the U.S dollar. In the second quarter, management launched the Moncler duo, Jimmy Choo Man Aqua and Lanvin Mon Eclat. In addition, it rolled out Montblanc Legend Red, Kate Spade Sparkle and Coach Wild Rose, which debuted in the previous quarter. What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Inter Parfums sports a Zacks Rank #1 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Stocks With the Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
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