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Inter Parfums (IPAR) Q3 Sales Rise, Brand Strength Key Driver

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Inter Parfums, Inc. (IPAR - Free Report) released record sales numbers for third-quarter 2022. In the three months ended Sep 30, 2022, net sales increased 7% to $280 million compared with $263 million reported in the year-ago quarter. At comparable foreign currency rates, third-quarter net sales rose 12%.

Sales Performance in Detail

Inter Parfums’ Europe-based product sales came in at $198 million, down 4% from 2021 levels. U.S.-based product sales amounted to $82 million, surging 45% from third-quarter 2021.

In the company’s U.S. operations, new brands like Ferragamo, Donna Karan and DKNY generated 41% of the gains. Apart from this, organic growth from established brands like GUESS?, Oscar de la Renta, Hollister, and Abercrombie & Fitch also contributed to the upside.

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Management highlighted that sales of its European operations increased 12% in euro, with the three largest brands Montblanc, Jimmy Choo and Coach, outperforming by 11%, 32% and 3% year over year, respectively. Several mid-sized brands, namely Kate Spade, Rochas, Boucheron, Van Cleef& Arpels and Karl Lagerfeld also witnessed comparable quarter sales growth. That being said, a 17% decline in the average euro-to-dollar exchange rate masked such an upside resulting in a 4% drop in the quarterly European-based product sales in dollars.

Inter Parfums stated that it witnessed modest growth in the third quarter compared with the year-ago quarter. The company continued to face some supply chain-related issues, which pushed the delivery of some holiday gift sets into the next quarter. That said, the company’s Italian operations are completely operational, with Ferragamo on track to become the second-largest brand under the U.S. operations banner during the year. Inter Parfums continues to see solid momentum in its travel retail business. In addition, the company’s travel amenities operation has started to experience growth.

Taking a look at Inter Parfums’ results for nine months ended Sep 30, 2022, net sales amounted to $776 million. The figure increased 16% from $669 million reported in the year-ago period. Sales in Europe and U.S.-based operations grew 4% and 62%, respectively, during the same period.

Outlook Reaffirmed

The Zacks Rank #3 (Hold) company reiterated its 2022 view, which reflects year-over-year top-and bottom-line growth. Management still anticipates 2022 net sales of roughly $1 billion. The metric reflects growth from $879.5 million reported in 2021. It expects earnings per share (EPS) of $3.25 for 2022. The company reported an EPS of $2.75 in 2021. The guidance is based on the assumption of no major resurgence in coronavirus cases and the current average dollar/euro exchange rate level.

IPAR’s shares have dropped 10.4% in a year compared with the industry’s decline of 46.6%.

Some Solid Food Bets

Some better-ranked stocks are e.l.f. Beauty (ELF - Free Report) , Lancaster Colony (LANC - Free Report) and TreeHouse Foods (THS - Free Report) .

e.l.f. Beauty, a cosmetic company, currently sports a Zacks Rank #1 (Strong Buy). ELF has a trailing four-quarter earnings surprise of almost 77%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for e.l.f. Beauty’s current financial year sales and EPS suggests growth of 16.9% and almost 6%, respectively, from the year-ago period’s reported figures.

Lancaster Colony, which manufactures and markets food products for the retail and foodservice markets, currently sports a Zacks Rank of 1. LANC delivered an earnings surprise of 170% in the last reported quarter.

The Zacks Consensus Estimate for Lancaster Colony’s current financial year sales and EPS suggests growth of 9.6% and 38.3%, respectively, from the corresponding year-ago reported figures.

TreeHouse Foods, which manufactures and distributes private-label foods and beverages, sports a Zacks Rank #1 at present. TreeHouse Foods has a trailing four-quarter earnings surprise of 45.2%, on average.

The Zacks Consensus Estimate for THS’ current financial-year sales and EPS suggests growth of 16.8% and 15.1%, respectively, from the year-ago reported numbers.

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