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Things to Note Ahead of Inter Parfums' (IPAR) Q4 Earnings

Inter Parfums, Inc. IPAR is likely to register a bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 27. Although the Zacks Consensus Estimate for quarterly earnings has moved up 9.4% in the past 30 days to 35 cents per share, the projection suggests a decline of 50.7% from the year-ago quarter’s reported figure. The consensus mark for 2023 earnings is pegged at $4.78 per share, indicating growth of 20.4% from the year-ago period’s reported figure.

The fragrances and related products company has a trailing four-quarter earnings surprise of 45.7%, on average. IPAR reported an earnings surprise of 30.7% in the last reported quarter.

Things To Note

Inter Parfums has been grappling with higher SG&A expenses for a while. We note that the company is undertaking heightened investments in advertising, promotion and structural investments to support the newly-acquired licenses. Such investments are likely to have put pressure on the company’s profits in the to-be-reported quarter.

Yet, Inter Parfums has been reaping benefits from the booming global fragrance market courtesy of strength in its brand portfolio. Also, management has been rolling out new products to aid portfolio strength. IPAR is also benefiting from strategic partnerships to boost assortment strength.

Inter Parfums, Inc. Price and EPS Surprise

 

Inter Parfums, Inc. Price and EPS Surprise
Inter Parfums, Inc. Price and EPS Surprise

Inter Parfums, Inc. price-eps-surprise | Inter Parfums, Inc. Quote

 

A Look at Sales Numbers

In the fourth quarter of fiscal 2024, the company reported a 6% increase in net sales, reaching $329 million. It also registered a 21% rally in full-year net sales, totaling $1,318 million. The company's robust performance is indicative of its strategic market positioning and sustained growth momentum.

European-based product sales contributed significantly to Inter Parfums' success, showcasing a 2% increase in the fourth quarter and an outstanding 16% growth for the full year. 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. Looking at the full year, these sales contributed significantly, totaling an impressive $862 million. This robust performance solidifies Inter Parfums' position in the European market, showcasing its ability to navigate challenges and capitalize on growth opportunities. For the full year, Coach, Jimmy Choo and Montblanc brands witnessed sales growth of 25%, 19% and 15%, respectively.

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. For the full year, U.S. operations achieved outstanding 33% sales growth, totaling $456 million, with Donna Karan/DKNY, GUESS and Ferragamo leading the way with gains of 205%, 23% and 21%, respectively.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Inter Parfums this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Inter Parfums has a Zacks Rank #2 and an Earnings ESP of +5.71% at present.

Other Stocks With Favorable Combination

Here are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.

The Gap, Inc. GPS currently has an Earnings ESP of +24.44% and sports a Zacks Rank of 1. GPS is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 19 cents suggests an increase of 125.3% from the year-ago fiscal quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Gap’s top line is expected to decrease from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $4.21 billion, suggesting a decline of 0.7% from the prior-year fiscal quarter’s reported figure. GPS has a trailing four-quarter earnings surprise of 137.9%, on average.

American Eagle Outfitters AEO currently has an Earnings ESP of +0.87% and sports a Zacks Rank #1. AEO is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.65 billion, suggesting 10.5% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for American Eagle’s fiscal fourth-quarter earnings is pegged at 50 cents, suggesting 35.1% growth from the year-ago quarter. The consensus mark has moved up 4.2% in the past 30 days.

Costco Wholesale COST has an Earnings ESP of +1.58% and a Zacks Rank of 2. COST is likely to register a top-and-bottom-line growth when it reports the second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $59.2 billion, suggesting growth of 7.1% from that reported in the prior-year quarter.

The Zacks Consensus Estimate for Costco’s earnings for the fiscal second quarter is pegged at $3.60 per share, indicating an increase of 9.1% from the year-ago period reported figure. COST delivered an earnings beat of 2.6%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

The Gap, Inc. (GPS) : Free Stock Analysis Report

Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report

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