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Inter Parfums (IPAR) Q2 Earnings Miss Estimates, Sales Rise Y/Y

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Inter Parfums, Inc. (IPAR - Free Report) delivered second-quarter 2022 results, with the top and the bottom line increasing year over year. Quarterly earnings missed the Zacks Consensus Estimate.

Inter Parfums’ results gained from sales growth across the company’s European and U.S.-based operations. The company benefited from the impressive performance of its brands. However, unfavorable foreign currency rates are a concern. Management reiterated its 2022 guidance.

Inter Parfums, Inc. Price and EPS Surprise


Inter Parfums, Inc. Price and EPS Surprise

Inter Parfums, Inc. price-eps-surprise | Inter Parfums, Inc. Quote


Results in Detail

Inter Parfums’ second-quarter earnings came in at 86 cents per share, which missed the Zacks Consensus Estimate of 98 cents. Nevertheless, the metric increased 21% from 71 cents per share reported in the year-ago quarter.

Quarterly net sales came in at $244.7 million, up 18% from $207.6 million reported in the year-ago quarter.

In an earlier press release, Inter Parfums highlighted that second-quarter net sales rallied 24% at comparable foreign currency rates. The company’s Europe-based product sales came in at $166.3 million, up 3% from 2021 levels. U.S.-based product sales amounted to $78.4 million, surging 69% from second-quarter 2021.

Management 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 the other brands. Management launched new flankers, including Authentic Moment by Abercrombie & Fitch and a collector’s edition of our MCM scent in the quarter under review. Also, the company launched Uomo by GUESS? in this period.

Talking about the European operations, the company highlighted that rise in the dollar masked gains of well-known brands. Nevertheless, brands like Montblanc, Jimmy Choo and Coach rose 6%, 4% and 13%, respectively, in U.S dollars. During the second quarter, management launched the Moncler duo, Jimmy Choo Man Aqua and Lanvin Mon Eclat. Also, it rolled out Montblanc Legend Red, Kate Spade Sparkle and Coach Wild Rose, which debuted in the previous quarter.

Inter Parfums’ second-quarter gross margin was $153.8 million, up from $132.4 million reported in the year-ago quarter. SG&A expenses amounted to $108.4 million, up from $87.7 million reported in the year-ago quarter.

Promotion and advertising, as a percentage of net sales, came in at nearly 19% compared with 16% in the year-ago quarter. Management is on track to undertake investment in promotion and advertising to aid product launches and create brand awareness.

Other Financial Aspects

Inter Parfums ended the quarter with cash and cash equivalents of $52.2 million, long-term debt (excluding the current portion) of $117.4 million and total equity of $723 million.

Inter Parfums announced a quarterly dividend of 50 cents per share, payable on Sep 30, 2022, to shareholders of record as of Sep 15, 2022.

Other Updates

Inter Parfums is on track with several new product launches during the second half of 2022. The launches include Cosmic Sky for Anna Sui, a new Away flanker for Abercrombie & Fitch and Ferragamo Bright Leather for U.S. operations. Inter Parfums will record its first sales of Donna Karan and DKNY fragrance during the back half of 2022.

The company will debut a new Coach men’s line and an extension of the Jimmy Choo I Want Choo line for European operations. Apart from these, it plans to introduce a new men’s line for Boucheron, two Rochas flankers for Byzance and Eau de Rochas and a new member of the Collection Extraordinaire by Van Cleef & Arpels.

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The company reiterated its guidance for 2022, reflecting record year-to-date sales and scheduled orders for shipment in the back half of the year. The company anticipates 2022 net sales of roughly $1 billion and earnings per share (EPS) are expected to be $3.25. The guidance is based on the assumption of no major resurgence in coronavirus cases and the current level of the average dollar/euro exchange rate.

The Zacks Rank #1 (Strong Buy) stock has increased 22.8% in the past three months compared with the industry’s growth of 16.6%.

3 Hot Staple Bets

Some better-ranked stocks are The Chef's Warehouse (CHEF - Free Report) , General Mills, Inc. (GIS - Free Report) and United Natural Foods (UNFI - Free Report) .

Chef’s Warehouse, a distributor of specialty food products in the United States, currently flaunts a Zacks Rank #1. CHEF has a trailing four-quarter earnings surprise of 355.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chef Warehouse’s current financial-year sales suggests growth of 40.7%from the year-ago reported numbers.

United Natural Foods distributes natural, organic, specialty, produce and conventional grocery and non-food products. UNFI currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for UNFI’s current financial year sales suggests 7.6% growth from the year-ago period’s reported figures. United Natural Foods has a trailing four-quarter earnings surprise of 29.9%, on average.

General Mills, which manufactures and markets branded consumer foods worldwide, currently carries a Zacks Rank of 2. GIS has a trailing four-quarter earnings surprise of 6.5%, on average.

The Zacks Consensus Estimate for General Mills’ current financial year sales and EPS suggests growth of almost 2% and 1.5%, respectively, from the corresponding year-ago reported figures.

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