Inter Parfums, Inc. (IPAR) is flourishing in the fragrance industry, driven by robust brand momentum and a growing market share. As a leading provider of fragrances and related products, it is making remarkable progress through successful brand expansions and innovative product launches. Management is also focused on pursuing growth through new licensing agreements and strategic acquisitions. However, it's crucial to recognize that the company faces challenges due to a rising cost environment.Let’s delve de ...

Interparfums, Inc. (IPAR) has announced the acquisition of Maison Goutal, taking over the worldwide intellectual property rights from Amorepacific Europe. While Amorepacific will continue managing operations for a limited time under a licensing agreement, Interparfums is set to take full control by 2026. The acquisition provides Interparfums with an opportunity to expand its presence in the high-end fragrance sector.Strategic Angle Behind Interparfums’ AcquisitionFounded in 1981 by Annick Goutal, the brand ...

NEW YORK, March 17, 2025 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today announced that its subsidiary, Interparfums SA, has acquired all worldwide intellectual property rights relating to Maison Goutal held by Amorepacific Europe. Amorepacific Europe will continue to operate the Goutal Brand under a license agreement for a set duration. Interparfums SA will develop the brand from 2026 onwards, together with its licensee. Created by Annick Goutal in 1981, the ...

NEW YORK, March 14, 2025 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) announced that its 72% owned subsidiary, Interparfums SA, issued the following news release today. COACH AND INTERPARFUMS EXTEND THEIR PARTNERSHIP IN THE UNIVERSE OF FRAGRANCES UNTIL JUNE 2031 In 2015, Coach and Interparfums signed an exclusive worldwide license agreement for the creation, the manufacturing and the distribution of fragrances under the Coach brand until June 30, 2026. Thanks primarily to the successful launches ...

Sales Performance - European based product sales reached $953.0 million in 2024, a 10% increase from $863.4 million in 2023[272] - United States based product sales grew to $511.3 million in 2024, reflecting a 12% increase from $455.8 million in 2023[272] - Total net sales for 2024 amounted to $1,452.3 million, a 10% increase compared to $1,317.7 million in 2023[272] - The addition of Lacoste brand contributed $85 million in net sales in its first year, exceeding expectations[273] - Jimmy Choo brand sales increased by 7% in 2024, driven by the success of the I Want Choo franchise[273] - GUESS brand sales rose by 13% in 2024, supported by the success of new product launches[274] - North America achieved sales growth of 6% in 2024, with net sales of $541.9 million compared to $511.7 million in 2023[278] - Western Europe saw a significant sales increase of 21% in 2024, reaching $364.3 million, up from $301.2 million in 2023[278] Financial Metrics - The overall gross margin percentage for the company was 63.9% in 2024, slightly up from 63.7% in 2023[280] - Selling, general and administrative expenses as a percentage of net sales were 44.7% in 2024, remaining flat compared to 44.6% in 2023[285] - Promotion and advertising expenses totaled $280.5 million in 2024, representing 19.3% of net sales[288] - Royalty expenses increased to $117.8 million in 2024, accounting for 8.1% of net sales[289] - The company's operating margins were 18.9% in 2024, down from 19.1% in 2023[291] - The consolidated effective tax rate was 24.2% in 2024, a decrease from 24.8% in 2023[296] Income and Cash Flow - Net income attributable to Interparfums, Inc. was $164.4 million in 2024, up from $152.7 million in 2023 and $120.9 million in 2022, reflecting a growth of 7.8% year-over-year[299] - Net income attributable to European based operations was $140.1 million in 2024, an increase of 12.1% from $124.0 million in 2023, while net income from United States operations rose to $68.9 million, up 8.3% from $63.8 million in 2023[300] - Cash provided by operating activities totaled $187.6 million in 2024, significantly higher than $105.8 million in 2023 and $73.0 million in 2022[308] - As of December 31, 2024, the company had $234.7 million in cash and cash equivalents, indicating a strong liquidity position[302] Debt and Financing - Long-term debt, including current maturities, was $157.3 million as of December 31, 2024[293] - The company entered into a $41.6 million loan agreement in July 2024 to improve its short-term cash position[293] - The company entered into a $41.6 million loan agreement in July 2024, and an additional $51.9 million loan agreement was established to finance the acquisition of the Lacoste trademark[313] Inventory and Operations - Working capital was $582 million as of December 31, 2024, with approximately 76% of total assets held by European based operations[303] - Inventory levels increased by 5% in 2024 to support sales growth, with finished goods comprising 63% of total inventory as of December 31, 2024[308] - The diversified brand portfolio and agile operating model are expected to help the company gain market share despite normalizing growth rates[275] Future Plans - The company plans to expand e-commerce channels and has a strong pipeline of new product launches for 2025[275] - New product launches planned for 2025 include GUESS Iconic, Ferragamo Fiamma, and a proprietary brand Solférino with 10 niche fragrances[275] - The company aims to potentially acquire new brands or licenses to enhance its portfolio, although no agreements are currently certain[276] Dividends and Acquisitions - The annual dividend was increased to $3.00 per share in February 2024, with a further increase to $3.20 per share planned for February 2025[315] - The company acquired the Off-White brand names and registered trademarks for $16 million in December 2024, with an additional $2 million payable over two years[311] Currency Management - The company has foreign currency contracts totaling approximately $100 million with maturities of less than one year to manage foreign exchange risks[321]

Financial Data and Key Metrics Changes - In 2024, consolidated net sales grew by 10% to $1.452 billion, with adjusted earnings before impairment at $5.18 per diluted share, exceeding guidance of $5.15 [6][42] - Gross margin was 64.5% for Q4 and 63.9% for the full year, consistent with prior periods [42] - Operating income before impairment increased by 11% to $279 million, with an operating margin of 19.2% [44][45] - The effective tax rate improved to 24.2%, down from 24.8% in 2023 [45] Business Line Data and Key Metrics Changes - European-based operations saw a 10% sales increase for the year, with a 6% increase in Q4 [46] - US-based operations achieved a 12% sales increase for the year, with a 16% increase in Q4 [51] - Jimmy Choo sales increased by 7%, Guess by 13%, and Donna Karan generated over $100 million in sales [9][10][50] Market Data and Key Metrics Changes - North America sales grew by 6%, Western Europe by 21%, and Asia Pacific by 3% in 2024 compared to 2023 [19] - Travel retail sales increased by 20% from 2023 [19] - Direct sales to retailers, including travel retail, represented approximately 49% of net sales, up from 47% the previous year [20] Company Strategy and Development Direction - The company plans to introduce bold new fragrances in 2025, focusing on blockbusters and high-quality scents [26][29] - A new proprietary brand, Solferino, will launch with ten niche fragrances in an ultra-selective distribution channel [29] - The company aims to streamline its supply chain and transition to third-party logistics to enhance efficiency [31] Management's Comments on Operating Environment and Future Outlook - The fragrance market is expected to continue its positive trajectory, albeit at a slower pace, with potential headwinds from tariffs and currency fluctuations [32][35] - Management remains confident in achieving record sales and earnings in 2025, maintaining guidance of $1.51 billion in net sales and EPS of $5.35 [58] - The company anticipates a more competitive landscape, with many competitors experiencing eroding margins [68][70] Other Important Information - The company has discontinued the Dunhill brand and will phase out the Boucheron license by the end of 2025 [30][112] - Significant investments in advertising and promotion totaled $281 million, with a focus on brand awareness and growth [43][81] Q&A Session Summary Question: Can you discuss the destocking in the industry? - Management noted that destocking effects were moderate in Q4, with the gap between sell-in and sell-out reduced [62][64] Question: How is competition changing, and will market share be gained in 2025? - Management observed that competitors are experiencing eroding margins, but they believe their innovation will help gain market share [66][70] Question: When will the Ferragamo blockbuster launch? - The Ferragamo fragrance is expected to launch in Q2, with significant selling in the US, Italy, and Mexico [72][73] Question: What are the trends in specific markets? - The US market showed strong growth in Q1 and Q3, but moderated in Q4, with expectations of mid-single-digit growth moving forward [78][80] Question: How will top brands perform in 2025? - Significant growth is expected from brands like Guess, Ferragamo, and Lacoste, while larger brands may see more moderate growth [110][112]

Core Insights - Interparfums, Inc. (IPAR) reported strong fourth-quarter 2024 results, with earnings per share of 82 cents, exceeding the Zacks Consensus Estimate of 80 cents, and a significant increase of 156% from 32 cents in the prior year [4] - The company achieved consolidated net sales of $362 million, a 10% increase from $329 million in the previous year, driven by robust global demand for its key brands [5] Sales Performance - The top six brands, accounting for approximately 70% of total sales, experienced a 5% increase in the fourth quarter, while new brands Lacoste and Roberto Cavalli contributed 8% to quarterly sales growth [2] - Sales from Europe-based operations rose 6% to $214 million, with Jimmy Choo's sales surging 11% [6] - U.S.-based net sales reached $149 million, reflecting a 16% year-over-year increase, driven by strong performances from GUESS, Donna Karan/DKNY, and Roberto Cavalli [7] Cost and Margin Analysis - Consolidated gross profit increased by 9.6% year over year to $233 million, with a gross margin of 64.5%, slightly down from 64.7% in the previous year [9] - Selling, general and administrative expenses (SG&A) decreased by 0.4% to $193 million, with SG&A as a percentage of sales contracting 560 basis points to 53.4% [10] - Operating income rose to $36 million, up from $18.9 million in the prior year, with an operating margin expansion of 430 basis points to 10% [10] Financial Health - Interparfums ended the quarter with cash and cash equivalents of $125.4 million, long-term debt of $115.7 million, and total equity of $942.6 million [11] - The company announced a cash dividend of 80 cents per share, with a 7% increase in the annual cash dividend from $3.00 to $3.20 per share, reflecting management's confidence in financial strength [12] Future Outlook - For 2025, Interparfums anticipates net sales of $1.51 billion and EPS of $5.35, both indicating a 4% year-over-year increase [13] - The company plans to launch new products and expand brands, including the introduction of its first proprietary niche brand, Solferino, in summer 2025 [3]

Company Performance - Interparfums reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and showing significant growth from $0.32 per share a year ago, representing an earnings surprise of 2.50% [1] - The company posted revenues of $361.5 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.10%, but up from $328.74 million year-over-year [2] - Over the last four quarters, Interparfums has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Outlook - Interparfums shares have increased approximately 4.8% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $341.77 million, and for the current fiscal year, it is $5.33 on revenues of $1.51 billion [7] - The estimate revisions trend for Interparfums is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Consumer Products - Discretionary industry, to which Interparfums belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Interparfums' stock performance [5]

Financial Performance - FY2024 net sales reached $1.45 billion, a 10% increase from FY2023[2] - Q4 2024 net sales were $362 million, also reflecting a 10% growth compared to Q4 2023[3] - U.S. based net sales grew by 16% in Q4 2024 and 12% for the full year, totaling $511 million[3] - The average dollar/euro exchange rate for Q4 2024 was 1.07, resulting in a negative 0.2% foreign exchange impact[3] - The company anticipates earnings per diluted share of $5.15 for FY2024, excluding a non-recurring impairment charge[14] Brand Performance - GUESS brand sales increased by 17% in Q4 2024, with annual sales expected to exceed $200 million[5][11] - Jimmy Choo, the largest brand, saw an 11% sales increase in Q4 2024, driven by the I Want Choo franchise[7] - Lacoste achieved $85 million in net sales in its first year, contributing 8% to consolidated quarterly sales growth[9] - The top six brands accounted for approximately 70% of net sales, with a 5% increase in Q4 2024[5] Future Outlook - Management is optimistic about 2025, citing strong demand for premium products and a robust pipeline of new launches[13]

Core Insights - Interparfums, Inc. reported record results for the fourth quarter and full year ended December 31, 2024, achieving a diluted EPS of $5.12 and reaffirming its 2025 guidance with a 7% increase in cash dividend [1][9][15] Financial Performance - Fourth quarter net sales reached $362 million, a 10% increase from $329 million in 2023; full year net sales were $1.452 billion, also a 10% increase from $1.318 billion in 2023 [2] - Gross margin for the fourth quarter was 64.5%, slightly down from 64.7% in 2023; for the full year, gross margin improved to 63.9% from 63.7% [2][10] - Operating income before impairment loss was $40 million for the fourth quarter, up 112% from $19 million in 2023; for the full year, it was $279 million, an 11% increase from $251 million [2][12] - Net income attributable to Interparfums, Inc. was $24 million for the fourth quarter, a 133% increase from $10 million in 2023; for the full year, net income was $164 million, up 8% from $153 million [2] Brand Performance - The top six brands, which account for approximately 70% of net sales, saw sales growth of 5% in the fourth quarter and 4% for the full year [5] - Key markets such as North America, Western Europe, and Asia/Pacific reported sales increases of 6%, 21%, and 3% respectively for the full year [5] - The brands Lacoste and Roberto Cavalli exceeded $115 million in sales during their first year under Interparfums' management, indicating strong demand [7] Strategic Outlook - The company plans to launch new product lines and extensions in 2025, including its first proprietary niche brand, Solférino, expected to debut in summer 2025 [8] - Interparfums anticipates continued growth in the prestige and luxury fragrance market, supported by a solid level of reorders in the first half of 2025 [8] Dividend and Guidance - The Board of Directors approved a 7% increase in the annual cash dividend rate to $3.20 per share, reflecting confidence in the company's financial strength [15] - The 2025 guidance projects net sales of $1.51 billion and EPS of $5.35, representing a 4% increase for both metrics [14]