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Inter Parfums (IPAR) Gains on Partnerships & Product Launches
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Inter Parfums, Inc. (IPAR - Free Report) is benefiting from focus on strategic partnerships. The provider of fragrances and related products is on track with effective launches. The company is 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.
Let’s discuss the factors driving IPAR’s growth.
Strategic Partnerships: Key Driver
Recently, Inter Parfums has taken a significant stride in the fragrance industry with the announcement of an exclusive worldwide fragrance license for the prestigious Roberto Cavalli brand. This collaboration, effective as of Jul 6, 2023, cements IPAR’s position as a leader in the luxury fragrance market and aligns perfectly with its strategy to develop an Italian brand hub.
In December 2022, its majority-owned Paris-based subsidiary, Interparfums SA, signed a license agreement with Lacoste — a well-known fashion sports brand. The parties inked a worldwide exclusive 15-year fragrance license agreement, effective Jan 1, 2024. IPAR is optimistic about the partnerships with well-established fragrance brands like Donna Karan and DKNY.
In December 2021, Inter Parfums — through its subsidiary Interparfums Italia — signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. In October 2021, it finalized the deal with Salvatore Ferragamo S.p.A. Per the terms, IPAR holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.
Image Source: Zacks Investment Research
Product Launches Drive Growth
Management expects to unveil new products and brand extensions throughout 2023. The company’s largest European-based brand, Montblanc, will release a sister scent for the signature line and one for men in the Explorer franchise. In the first quarter of 2023, the company introduced Rose Passion, a new flanker for Jimmy Choo. Its Coach brand will add scents for men and women. Inter Parfums’ mid-sized brands rolled out new scents, like a collection for Moncler and Chérie by Kate Spade. It also added fragrance to Rochas and Van Cleef & Arpels families. For the second quarter, it plans to launch Coach green and Montblanc Explorer Platinum.
For the U.S.-based operations, every brand in the portfolio is introducing companion products for existing programs. Management has a new version of Bella Vita in the pipeline. The company will launch its first men’s scent for the MCM brand.
Wrapping Up
Inter Parfums has been grappling with higher selling, general and administrative (SG&A) expenses for a while. During the first quarter of 2023, SG&A expenses amounted to $112.7 million, up from $97.4 million reported in the year-ago quarter. Existence of strong peers and unfavorable foreign currency translations might also affect Inter Parfums' performance.
That being said, strength in its brand portfolio and partnerships will keep aiding IPAR’s growth. Management expects 2023 net sales to come in at $1.25 billion, higher than $1.1 billion in 2022. The company anticipates 2023 earnings per share (EPS) of $4.25 compared with $3.78 in 2022.
The Zacks Rank #3 (Hold) company’s shares have rallied 20.5% in the past six months against the industry’s 16.1% decline.
Solid Staple Bets
Here we have highlighted three top-ranked stocks, namely TreeHouse Foods, Inc. (THS - Free Report) , Lamb Weston Holdings (LW - Free Report) and Celsius Holdings (CELH - Free Report) .
TreeHouse Foods, a manufacturer of packaged foods and beverages, currently sports a Zacks Rank #1 (Strong Buy). THS has a trailing four-quarter earnings surprise of 49.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TreeHouse Foods’ current financial-year sales suggests decline of 12.4%, from the year-ago reported numbers.
Lamb Weston, a leading supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers worldwide, currently carries a Zacks Rank #2 (Buy). LW has a trailing four-quarter earnings surprise of 47.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 29.6% and 117.3%, respectively, from the year-ago reported numbers. The expected EPS growth rate for three to five years is 42.7%.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2. CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.
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Inter Parfums (IPAR) Gains on Partnerships & Product Launches
Inter Parfums, Inc. (IPAR - Free Report) is benefiting from focus on strategic partnerships. The provider of fragrances and related products is on track with effective launches. The company is 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.
Let’s discuss the factors driving IPAR’s growth.
Strategic Partnerships: Key Driver
Recently, Inter Parfums has taken a significant stride in the fragrance industry with the announcement of an exclusive worldwide fragrance license for the prestigious Roberto Cavalli brand. This collaboration, effective as of Jul 6, 2023, cements IPAR’s position as a leader in the luxury fragrance market and aligns perfectly with its strategy to develop an Italian brand hub.
In December 2022, its majority-owned Paris-based subsidiary, Interparfums SA, signed a license agreement with Lacoste — a well-known fashion sports brand. The parties inked a worldwide exclusive 15-year fragrance license agreement, effective Jan 1, 2024. IPAR is optimistic about the partnerships with well-established fragrance brands like Donna Karan and DKNY.
In December 2021, Inter Parfums — through its subsidiary Interparfums Italia — signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. In October 2021, it finalized the deal with Salvatore Ferragamo S.p.A. Per the terms, IPAR holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.
Image Source: Zacks Investment Research
Product Launches Drive Growth
Management expects to unveil new products and brand extensions throughout 2023. The company’s largest European-based brand, Montblanc, will release a sister scent for the signature line and one for men in the Explorer franchise. In the first quarter of 2023, the company introduced Rose Passion, a new flanker for Jimmy Choo. Its Coach brand will add scents for men and women. Inter Parfums’ mid-sized brands rolled out new scents, like a collection for Moncler and Chérie by Kate Spade. It also added fragrance to Rochas and Van Cleef & Arpels families. For the second quarter, it plans to launch Coach green and Montblanc Explorer Platinum.
For the U.S.-based operations, every brand in the portfolio is introducing companion products for existing programs. Management has a new version of Bella Vita in the pipeline. The company will launch its first men’s scent for the MCM brand.
Wrapping Up
Inter Parfums has been grappling with higher selling, general and administrative (SG&A) expenses for a while. During the first quarter of 2023, SG&A expenses amounted to $112.7 million, up from $97.4 million reported in the year-ago quarter. Existence of strong peers and unfavorable foreign currency translations might also affect Inter Parfums' performance.
That being said, strength in its brand portfolio and partnerships will keep aiding IPAR’s growth. Management expects 2023 net sales to come in at $1.25 billion, higher than $1.1 billion in 2022. The company anticipates 2023 earnings per share (EPS) of $4.25 compared with $3.78 in 2022.
The Zacks Rank #3 (Hold) company’s shares have rallied 20.5% in the past six months against the industry’s 16.1% decline.
Solid Staple Bets
Here we have highlighted three top-ranked stocks, namely TreeHouse Foods, Inc. (THS - Free Report) , Lamb Weston Holdings (LW - Free Report) and Celsius Holdings (CELH - Free Report) .
TreeHouse Foods, a manufacturer of packaged foods and beverages, currently sports a Zacks Rank #1 (Strong Buy). THS has a trailing four-quarter earnings surprise of 49.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TreeHouse Foods’ current financial-year sales suggests decline of 12.4%, from the year-ago reported numbers.
Lamb Weston, a leading supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers worldwide, currently carries a Zacks Rank #2 (Buy). LW has a trailing four-quarter earnings surprise of 47.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 29.6% and 117.3%, respectively, from the year-ago reported numbers. The expected EPS growth rate for three to five years is 42.7%.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2. CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.