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If You Invested $1000 in Inter Parfums 10 Years Ago, This Is How Much You'd Have Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Inter Parfums (IPAR - Free Report) ten years ago? It may not have been easy to hold on to IPAR for all that time, but if you did, how much would your investment be worth today?
Inter Parfums' Business In-Depth
With that in mind, let's take a look at Inter Parfums' main business drivers.
Inter Parfums, Inc. is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. Organized as per the laws of the State of Delaware in May 1985, the company was formerly known as Jean Philippe Fragrances, Inc. In July 1999, the company changed its name to Inter Parfums, Inc.
The company manages its business through two operational units — European-based operations and United States-based operations. In context with the European unit, the company produces and distributes products through license agreements with other brands. Certain prestige fragrance products of the company are marketed by its owned subsidiary in Paris, Interparfums SA.
Some of the well-known brands of the company in the European unit are Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Paul Smith, Repetto, Rochas, S.T. Dupont and Van Cleef & Arpels. Markedly, sales through European operations contributed nearly 75% to net sales in 2021.
Additionally, products sold and marketed under the United States operations unit are either owned by the company or through licensing agreements. The unit contributed nearly 25% to the company’s sales in 2021. Some of the established brands in this category are Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Dunhill, Hollister, French Connection, Graff, GUESS, Lily Aldridge and Oscar de la Renta.
It is important to note that the company does not own any manufacturing facilities. Inter Parfums acts as a general contractor by sourcing the required components from suppliers. The components are assembled at distribution centers, which are then sent to third-party fillers. The third-party fillers manufacture the finished products for Inter Parfums and deliver the same to distribution centers.
The company sells its products mainly through department stores, specialty stores, perfumeries, domestic and international wholesalers, and distributors. Inter Parfum’s products are also sold through various internet platforms, including department store websites like macys.com, major websites like amazon.com, duty store websites like sephora.com, and websites of licensors such as montblanc.com.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Inter Parfums a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2013 would be worth $5,292.51, or a 429.25% gain, as of May 3, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 157.86% and gold's return of 31.97% over the same time frame.
Analysts are forecasting more upside for IPAR too.
Inter Parfums’ shares have outpaced the industry in the past three months. The company is benefiting from strength in its brand portfolio, which continued in the first quarter of 2023. Net sales rallied 24% year over year to $312 million. Net sales gained from sales growth across its European and U.S.-based operations. Following the upbeat sales numbers, management recently raised its top-and bottom-line view for 2023. The company has been benefiting from the booming fragrance market globally. In this regard, it is gaining market share with sizable demand for its key brands and new licenses. Management is seeing robust opportunity from the reopening of China, especially for the back half of the year. It has been on track to expand its business through new licenses or buyouts. However, the company is grappling with higher SG&A expenses.
The stock is up 5.13% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023. The consensus estimate has moved up as well.
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If You Invested $1000 in Inter Parfums 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Inter Parfums (IPAR - Free Report) ten years ago? It may not have been easy to hold on to IPAR for all that time, but if you did, how much would your investment be worth today?
Inter Parfums' Business In-Depth
With that in mind, let's take a look at Inter Parfums' main business drivers.
Inter Parfums, Inc. is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. Organized as per the laws of the State of Delaware in May 1985, the company was formerly known as Jean Philippe Fragrances, Inc. In July 1999, the company changed its name to Inter Parfums, Inc.
The company manages its business through two operational units — European-based operations and United States-based operations. In context with the European unit, the company produces and distributes products through license agreements with other brands. Certain prestige fragrance products of the company are marketed by its owned subsidiary in Paris, Interparfums SA.
Some of the well-known brands of the company in the European unit are Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Paul Smith, Repetto, Rochas, S.T. Dupont and Van Cleef & Arpels. Markedly, sales through European operations contributed nearly 75% to net sales in 2021.
Additionally, products sold and marketed under the United States operations unit are either owned by the company or through licensing agreements. The unit contributed nearly 25% to the company’s sales in 2021. Some of the established brands in this category are Abercrombie & Fitch, Agent Provocateur, Anna Sui, bebe, Dunhill, Hollister, French Connection, Graff, GUESS, Lily Aldridge and Oscar de la Renta.
It is important to note that the company does not own any manufacturing facilities. Inter Parfums acts as a general contractor by sourcing the required components from suppliers. The components are assembled at distribution centers, which are then sent to third-party fillers. The third-party fillers manufacture the finished products for Inter Parfums and deliver the same to distribution centers.
The company sells its products mainly through department stores, specialty stores, perfumeries, domestic and international wholesalers, and distributors. Inter Parfum’s products are also sold through various internet platforms, including department store websites like macys.com, major websites like amazon.com, duty store websites like sephora.com, and websites of licensors such as montblanc.com.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Inter Parfums a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in May 2013 would be worth $5,292.51, or a 429.25% gain, as of May 3, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 157.86% and gold's return of 31.97% over the same time frame.
Analysts are forecasting more upside for IPAR too.
Inter Parfums’ shares have outpaced the industry in the past three months. The company is benefiting from strength in its brand portfolio, which continued in the first quarter of 2023. Net sales rallied 24% year over year to $312 million. Net sales gained from sales growth across its European and U.S.-based operations. Following the upbeat sales numbers, management recently raised its top-and bottom-line view for 2023. The company has been benefiting from the booming fragrance market globally. In this regard, it is gaining market share with sizable demand for its key brands and new licenses. Management is seeing robust opportunity from the reopening of China, especially for the back half of the year. It has been on track to expand its business through new licenses or buyouts. However, the company is grappling with higher SG&A expenses.
The stock is up 5.13% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2023. The consensus estimate has moved up as well.