Inter Parfums, Inc. IPAR released sales numbers for the fourth quarter and 2019. For the three months ended Dec 31, 2019, net sales amounted to $177.8 million, up 0.3% (1.5% at constant currency) from $177.2 million reported in the year-ago quarter. This indicates a slowdown from the third quarter, wherein net sales increased 7.9%. Sales in 2019 came in at $713.5 million, up 5.6% (or 7.8% at cc) from $675.6 million reported in 2018. Notably, the company reported record high sales in 2019 amid strong dollar and relatively fewer launches compared with prior years. Further, management was encouraged about the addition of Kate Spade New York and MCM in its brand portfolio. Also, Inter Parfums was issued an extended license for the Oscar de la Renta brand. Regional Sales Data The company’s European-based operations registered net sales of 542.1 million in 2019, which inched up 0.8% year over year. During fourth-quarter 2019, sales in the segment declined 4.2% to $129.1 million. Growth across brands such as Montblanc, Karl Lagerfeld and Van Cleef & Arpels has been supporting growth in the European-based operations through the year. On the contrary, brands like Coach and Jimmy Choo witnessed some softness. In U.S.-based operations, net sales rallied 24.3% to $171.4 million in 2019. During the fourth quarter, sales in the segment increased 14.7% to $48.7 million. The GUESS? (GES) brand continues to be one of the key growth catalysts in the segment. Other brand banners depicting growth are The Oscar de La Renta, Abercrombie & Fitch and Hollister.
Outlook Inter Parfums continues to envision 2019 earnings per share (EPS) to be approximately $1.9, in line with the current Zacks Consensus Estimate. Further, the company reaffirmed its guidance for 2020, which was first issued in November 2019. Net sales are expected to be roughly $742 million. For 2020, EPS are expected to be nearly $2.00 per share. Management expects sales growth to be buoyed by fragrance launches at key brands. The company plans to launch new fragrance under the GUESS, Hollister and Montblanc brands sometime this spring. Additionally, it has fragrance launches lined up for Jimmy Choo and Coach brands in 2020. Moreover, Inter Parfums is optimistic about the debut of a number scents from brands like Anna Sui, Graff and Kate Spade New York. However, this Zacks Rank #4 (Sell) company has been witnessing rising selling, general and administrative expenses. Earlier, management stated that it expects expenses related to promotion and advertising programs to amount to $150 million for 2019. Such factors may exert pressure on the company’s bottom line. Inter Parfums’ shares have gained 7.2% in the past year compared with the industry’s growth of 13.7%. Looking for Better Consumer Staples Picks? Check These Helen of Troy Limited HELE, which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 9.3%. You can see . the complete list of today’s Zacks #1 Rank stocks here The Estee Lauder Companies Inc. EL, which carries a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 12.8%. Kellogg Company ( K Quick Quote K - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 6%. 5 Stocks Set to Double Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>