Inter Parfums (IPAR) Ups 2023 Guidance on Robust Q2 Sales
Inter Parfums, Inc. IPAR released record sales number for second-quarter 2023. Following the upbeat numbers, management raised its top-line view for 2023. The company’s stock has rallied 35.7% year to date against the industry’s 15% decline.
Closer Look at Q2 Sales
For the three months ended Jun 30, 2023, net sales rallied 26% to $309 million compared with $245 million reported in the year-ago quarter. At comparable foreign currency rates, second-quarter net sales rallied 25% year over year.
During the second quarter, Inter Parfums’ Europe-based product sales came in at $198 million, up 19% from 2022 levels. U.S.-based product sales amounted to $111 million, increasing 42% from second-quarter 2022 figures.
In the company’s European operations net sales increase was backed up by three largest brands. Coach, Jimmy Choo and Montblanc delivered sales growth of 28%, 21% and 16%, respectively, during the second quarter. In addition, IPAR’s fragrance "jewels" — Van Cleef & Arpels and Boucheron and fashion houses — Rochas and Kate Spade performed well. Management highlighted that strength across the overall market and 2023 launches and brand extensions, like Jimmy Choo Rose Passion, Montblanc Signature Absolue and Explorer Platinum, Coach Green and Love as well as Girl Life among others, led to year-to-date sales increase of 23% in European-based operations.
Growth in its U.S. operations was fueled by solid performance of key brands in the portfolio. The company is impressed by the continued success of GUESS brands’ fragrances, up 30% year over year. The upside can be attributed to sales of the newest pillars — Seductive Blue and Uomo Acqua. IPAR also saw solid sales of Ferragamo fragrances. Oscar de la Renta also delivered impressive performance during the second quarter. Donna Karan/DKNY brands is also performing well, and has gone up to become the company’s second largest U.S. based brand.
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Launches on Track
The Zacks Rank #3 (Hold) company believes that gift sets will play a key role during the second half of the year. Management is on track to release various extensions including Ferragamo, Donna Karan/DKNY and GUESS brands for U.S.-based operations.
For European based operations, the company expects to introduce new entries for the Karl Lagerfeld Les Parfums Matières collection. It will also debut a new member of the Van Cleef & Arpels Collection Extraordinaire. IPAR is planning to distribute the well-known scent, Abercrombie & Fitch Fierce, across few chosen markets.
Increased Sales View
Courtesy of the healthy fragrance market, consumer demand along with strength in most brands management is raising its 2023 net sales guidance to $1.3 billion. The company had earlier expected the metric to come in at $1.25 billion.
Inter Parfums still anticipates earnings per share (EPS) of $4.25 for 2023. The guidance is based on the assumption of no major resurgence in coronavirus cases and the current level of the average dollar/euro exchange rate.
IPAR also highlighted that the Chinese market has not fully recovered. The company expects to see improvements during 2024 in this market.
Some Better-Ranked Staple Bets
Here we have highlighted three better-ranked stocks, namely TreeHouse Foods, Inc. THS, Celsius Holdings CELH and McCormick & Company, Incorporated MKC.
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’s sales suggests a decline of 12.4% from the year-ago reported numbers.
Celsius Holdings, which offers functional drinks and liquid supplements, carries a Zacks Rank #2 (Buy) at present. CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year’s sales and earnings implies surges of 69.6% and 154.4%, respectively, from the prior-year numbers.
McCormick, which operates as a manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank #2. MKC has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings suggests growth of 6.4% and 5.1%, respectively, from the year-ago reported numbers.
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