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Inter Parfums (IPAR) Lags Q4 Earnings Estimate, Sales Rise Y/Y
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Inter Parfums, Inc. (IPAR - Free Report) delivered fourth-quarter 2023 results, with the bottom line declining year over year and missing the Zacks Consensus Estimate. Nevertheless, the top line increased from the year-ago quarter’s reported figure. Management hiked its annual dividend rate.
Sales benefited from the continued demand for the company’s brands and solid holiday season sell-through. Inter Parfums is reaping benefits from strength in the fragrance industry and healthy retailer inventories. Taking into account the uncertainty associated with the political environment in the Middle East and Eastern Europe, management reaffirmed its 2024 guidance.
Q4 Results in Detail
Inter Parfums posted fourth-quarter earnings of 32 cents per share, down 37% from the year-ago quarter’s figure. The metric lagged the Zacks Consensus Estimate of 35 cents per share.
Inter Parfums, Inc. Price, Consensus and EPS Surprise
Quarterly net sales increased 6% to $329 million compared with $311 million in the year-ago quarter. In an earlier press release, the company highlighted that its robust performance is indicative of its strategic market positioning and sustained growth momentum.
European-based product sales contributed significantly to Inter Parfums' success, up 2% in the fourth quarter. Notable contributors to this upside include a 17% rise in Coach brand sales during the fourth quarter. Despite anticipated declines in Jimmy Choo and Montblanc sales in the fourth quarter, overall European operations remained resilient.
In the fourth quarter, European-based product sales reached a total of $200 million, underscoring the sustained demand and market strength. This robust performance solidifies Inter Parfums' position in the European market, showcasing its ability to navigate challenges and capitalize on growth opportunities.
Inter Parfums' U.S.-based operations witnessed a remarkable 13% sales growth in the fourth quarter, reaching $128 million. The upside was primarily driven by Donna Karan/DKNY, with comparable quarter sales advancing 21%. GUESS and Ferragamo also experienced mid-single-digit growth during the quarter.
Inter Parfums’ fourth-quarter gross profit came in at $212.7 million, up from $200.1 million reported in the year-ago quarter. The gross margin was 64.7%, up 30 basis points (bps) from the 64.4% reported in the year-ago quarter. We had expected gross margin to come in at 56.3%.
The company’s operating income came in at $19 million, down 19% from the $23 million reported in the year-ago quarter. The operating margin came in at 5.7%, down 170 bps from the 7.5% reported in the year-ago quarter. We had expected the metric to be 9.5% in the fourth quarter of 2023.
Inter Parfums’ SG&A expenses were $193.8 million, up from the $169.1 million reported in the year-ago quarter.
Image Source: Zacks Investment Research
Other Financial Aspects
Inter Parfums ended the quarter with cash and cash equivalents of $88.5 million, long-term debt (excluding the current portion) of $127.9 million and total equity of $892.2 million.
Inter Parfums announced a 20% hike in its annual dividend to $3.0 per share. The company will now pay a quarterly dividend of 75 cents per share, payable on Mar 29, 2024, to shareholders of record as of Mar 15.
In 2023, management repurchased 116,860 shares worth $15.4 million. The company is likely to keep repurchasing 130,000 shares during 2024.
Guidance
For full-year 2024, the company anticipates net sales of $1.45 billion and earnings of $5.15 per share. This guidance suggests 10% growth in net sales and an 8% improvement in the bottom line from 2023 levels.
The Zacks Rank #2 (Buy) stock has gained 24.9% in the past three months compared with the industry’s 18.8% growth.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of 15.2% and 3.4%, respectively, from the year-ago reported numbers.
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2. VITL has a trailing four-quarter average earnings surprise of 145%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales indicates growth of 29% from the year-ago reported actuals.
Lamb Weston Holdings, Inc. (LW - Free Report) is a leading global manufacturer, marketer and distributor of value-added frozen potato products. LW currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggest growth of 28.3% and 26.9%, respectively, from the year-ago reported numbers. LW has a trailing four-quarter average earnings surprise of 28.8%.
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Inter Parfums (IPAR) Lags Q4 Earnings Estimate, Sales Rise Y/Y
Inter Parfums, Inc. (IPAR - Free Report) delivered fourth-quarter 2023 results, with the bottom line declining year over year and missing the Zacks Consensus Estimate. Nevertheless, the top line increased from the year-ago quarter’s reported figure. Management hiked its annual dividend rate.
Sales benefited from the continued demand for the company’s brands and solid holiday season sell-through. Inter Parfums is reaping benefits from strength in the fragrance industry and healthy retailer inventories. Taking into account the uncertainty associated with the political environment in the Middle East and Eastern Europe, management reaffirmed its 2024 guidance.
Q4 Results in Detail
Inter Parfums posted fourth-quarter earnings of 32 cents per share, down 37% from the year-ago quarter’s figure. The metric lagged the Zacks Consensus Estimate of 35 cents per share.
Inter Parfums, Inc. Price, Consensus and EPS Surprise
Inter Parfums, Inc. price-consensus-eps-surprise-chart | Inter Parfums, Inc. Quote
Quarterly net sales increased 6% to $329 million compared with $311 million in the year-ago quarter. In an earlier press release, the company highlighted that its robust performance is indicative of its strategic market positioning and sustained growth momentum.
European-based product sales contributed significantly to Inter Parfums' success, up 2% in the fourth quarter. Notable contributors to this upside include a 17% rise in Coach brand sales during the fourth quarter. Despite anticipated declines in Jimmy Choo and Montblanc sales in the fourth quarter, overall European operations remained resilient.
In the fourth quarter, European-based product sales reached a total of $200 million, underscoring the sustained demand and market strength. This robust performance solidifies Inter Parfums' position in the European market, showcasing its ability to navigate challenges and capitalize on growth opportunities.
Inter Parfums' U.S.-based operations witnessed a remarkable 13% sales growth in the fourth quarter, reaching $128 million. The upside was primarily driven by Donna Karan/DKNY, with comparable quarter sales advancing 21%. GUESS and Ferragamo also experienced mid-single-digit growth during the quarter.
Inter Parfums’ fourth-quarter gross profit came in at $212.7 million, up from $200.1 million reported in the year-ago quarter. The gross margin was 64.7%, up 30 basis points (bps) from the 64.4% reported in the year-ago quarter. We had expected gross margin to come in at 56.3%.
The company’s operating income came in at $19 million, down 19% from the $23 million reported in the year-ago quarter. The operating margin came in at 5.7%, down 170 bps from the 7.5% reported in the year-ago quarter. We had expected the metric to be 9.5% in the fourth quarter of 2023.
Inter Parfums’ SG&A expenses were $193.8 million, up from the $169.1 million reported in the year-ago quarter.
Image Source: Zacks Investment Research
Other Financial Aspects
Inter Parfums ended the quarter with cash and cash equivalents of $88.5 million, long-term debt (excluding the current portion) of $127.9 million and total equity of $892.2 million.
Inter Parfums announced a 20% hike in its annual dividend to $3.0 per share. The company will now pay a quarterly dividend of 75 cents per share, payable on Mar 29, 2024, to shareholders of record as of Mar 15.
In 2023, management repurchased 116,860 shares worth $15.4 million. The company is likely to keep repurchasing 130,000 shares during 2024.
Guidance
For full-year 2024, the company anticipates net sales of $1.45 billion and earnings of $5.15 per share. This guidance suggests 10% growth in net sales and an 8% improvement in the bottom line from 2023 levels.
The Zacks Rank #2 (Buy) stock has gained 24.9% in the past three months compared with the industry’s 18.8% growth.
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Post Holdings (POST - Free Report) , which operates as a consumer packaged goods holding company, sports a Zacks Rank #1 (Strong Buy). POST has a trailing four-quarter earnings surprise of 52.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings suggests growth of 15.2% and 3.4%, respectively, from the year-ago reported numbers.
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2. VITL has a trailing four-quarter average earnings surprise of 145%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales indicates growth of 29% from the year-ago reported actuals.
Lamb Weston Holdings, Inc. (LW - Free Report) is a leading global manufacturer, marketer and distributor of value-added frozen potato products. LW currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggest growth of 28.3% and 26.9%, respectively, from the year-ago reported numbers. LW has a trailing four-quarter average earnings surprise of 28.8%.