We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Inter Parfums (IPAR) Withdraws 2020 View Due to Coronavirus
Read MoreHide Full Article
The coronavirus pandemic has rattled most sectors across the globe, with the cosmetics space being no exception. Incidentally, Inter Parfums, Inc. (IPAR - Free Report) has issued a business update, including the withdrawal of the guidance. Due to the outbreak and its impact on revenues and costs, management has withdrawn full-year 2020 guidance, which was issued along with its fourth-quarter earnings results on Mar 3.
Management in its last earnings call stated that if the prevalence of the coronavirus impact is limited to the initial few months of 2020, it expects net sales and net income to be in line with 2019 numbers. In 2019, Inter Parfums had generated net sales of $713.5 million, whereas net income was $1.90 per share.
Notably, coronavirus has wreaked havoc in the global market. Companies in the cosmetics space are bearing the brunt of soft traffic stemming from consumers in big cities staying indoors to contain further spread of the virus. Also, the pandemic has led to store closures and limited hours of operations. Apart from this, cosmetic companies like Inter Parfums are delaying product launches, given the current situation and its chances to persist in the near term at least. To top it, coronavirus and its deadly spread beyond China have reduced global travel. Certainly, this is a blow to the travel retail network, which plays a vital role in the sales of cosmetic players.
We note that coronavirus-led worries also weighed on the guidance of other cosmetic players like The Estee Lauder Companies Inc. (EL - Free Report) and Nu Skin Enterprises, Inc. (NUS - Free Report) , when they reported quarterly results recently. Moreover, beauty retailer, Ulta Beauty, Inc. (ULTA - Free Report) , announced temporary store closure plans and withdrew its recently provided guidance for fiscal 2020 amid the growing spread of COVID-19.
Meanwhile, Inter Parfums, in its latest release, informed its investors that they are taking enhanced precautionary measures, including implementation of work from home for several employees, among other moves. Moreover, management believes that Inter Parfums is financially and operationally sound to withstand the current crisis.
The company entered 2020 with cash, cash equivalents and short-term investments of $253 million as well as the long-term debt of just $10.7 million. Also, Inter Parfums is on track with optimizing fixed expenses and protecting cash flow amid the COVID-19 crisis. However, the previously announced quarterly dividend of 33 cents per share will be paid out as per schedule.
Well, Inter Parfums is already seeing some rebound in its Asia business. Of late, it has been witnessing a restart of normal sales in South Korea and China, with strong online sales in the region. In this view, the company is on track with rapidly filling the distribution channels to maintain a reasonable inventory level for the future.
We note that shares of this Zacks Rank #3 (Hold) company have plunged 49.7% in the past year compared with the industry’s decline of 39.4%.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Inter Parfums (IPAR) Withdraws 2020 View Due to Coronavirus
The coronavirus pandemic has rattled most sectors across the globe, with the cosmetics space being no exception. Incidentally, Inter Parfums, Inc. (IPAR - Free Report) has issued a business update, including the withdrawal of the guidance. Due to the outbreak and its impact on revenues and costs, management has withdrawn full-year 2020 guidance, which was issued along with its fourth-quarter earnings results on Mar 3.
Management in its last earnings call stated that if the prevalence of the coronavirus impact is limited to the initial few months of 2020, it expects net sales and net income to be in line with 2019 numbers. In 2019, Inter Parfums had generated net sales of $713.5 million, whereas net income was $1.90 per share.
Notably, coronavirus has wreaked havoc in the global market. Companies in the cosmetics space are bearing the brunt of soft traffic stemming from consumers in big cities staying indoors to contain further spread of the virus. Also, the pandemic has led to store closures and limited hours of operations. Apart from this, cosmetic companies like Inter Parfums are delaying product launches, given the current situation and its chances to persist in the near term at least. To top it, coronavirus and its deadly spread beyond China have reduced global travel. Certainly, this is a blow to the travel retail network, which plays a vital role in the sales of cosmetic players.
We note that coronavirus-led worries also weighed on the guidance of other cosmetic players like The Estee Lauder Companies Inc. (EL - Free Report) and Nu Skin Enterprises, Inc. (NUS - Free Report) , when they reported quarterly results recently. Moreover, beauty retailer, Ulta Beauty, Inc. (ULTA - Free Report) , announced temporary store closure plans and withdrew its recently provided guidance for fiscal 2020 amid the growing spread of COVID-19.
Meanwhile, Inter Parfums, in its latest release, informed its investors that they are taking enhanced precautionary measures, including implementation of work from home for several employees, among other moves. Moreover, management believes that Inter Parfums is financially and operationally sound to withstand the current crisis.
The company entered 2020 with cash, cash equivalents and short-term investments of $253 million as well as the long-term debt of just $10.7 million. Also, Inter Parfums is on track with optimizing fixed expenses and protecting cash flow amid the COVID-19 crisis. However, the previously announced quarterly dividend of 33 cents per share will be paid out as per schedule.
Well, Inter Parfums is already seeing some rebound in its Asia business. Of late, it has been witnessing a restart of normal sales in South Korea and China, with strong online sales in the region. In this view, the company is on track with rapidly filling the distribution channels to maintain a reasonable inventory level for the future.
We note that shares of this Zacks Rank #3 (Hold) company have plunged 49.7% in the past year compared with the industry’s decline of 39.4%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>