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Interparfums, Inc. Reports Record 2024 Third Quarter Results

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Interparfums reported record Q3 2024 results with net sales reaching $425M, up 15% from 2023. The company achieved a gross margin of 63.9% and operating income of $106M, up 22%. Third quarter sales growth was strong across major markets: North America (+12%), Western Europe (+25%), and Asia/Pacific (+15%). The newly acquired Roberto Cavalli and Lacoste fragrance lines contributed 10% to Q3 topline performance. The company maintains its 2024 guidance of $1.45B in net sales and $5.15 earnings per diluted share. A quarterly dividend of $0.75 per share will be paid on December 31, 2024.

Interparfums ha riportato risultati record nel terzo trimestre del 2024, con vendite nette che hanno raggiunto $425 milioni, in aumento del 15% rispetto al 2023. L'azienda ha conseguito un margine lordo del 63,9% e un reddito operativo di $106 milioni, in crescita del 22%. La crescita delle vendite del terzo trimestre è stata forte in tutti i principali mercati: Nord America (+12%), Europa occidentale (+25%) e Asia/Pacifico (+15%). Le nuove linee di profumi Roberto Cavalli e Lacoste hanno contribuito per il 10% alle performance del fatturato del terzo trimestre. L'azienda mantiene le previsioni per il 2024, pari a $1,45 miliardi di vendite nette e $5,15 di utili per azione diluiti. Un dividendo trimestrale di $0,75 per azione sarà corrisposto il 31 dicembre 2024.

Interparfums reportó resultados récord en el tercer trimestre de 2024, con ventas netas alcanzando los $425 millones, un aumento del 15% respecto a 2023. La compañía logró un margen bruto del 63,9% y un ingreso operativo de $106 millones, un incremento del 22%. El crecimiento de las ventas en el tercer trimestre fue fuerte en los principales mercados: América del Norte (+12%), Europa Occidental (+25%) y Asia/Pacífico (+15%). Las recién adquiridas líneas de fragancias Roberto Cavalli y Lacoste contribuyeron con un 10% al rendimiento del ingreso del tercer trimestre. La compañía mantiene su guía para 2024 de $1.45 mil millones en ventas netas y $5.15 de ganancias por acción diluida. Se pagará un dividendo trimestral de $0.75 por acción el 31 de diciembre de 2024.

Interparfums는 2024년 3분기 기록적인 실적을 보고했으며, 순매출은 $425M로 2023년 대비 15% 증가했습니다. 회사는 총마진 63.9%를 달성했고, 운영 수익은 $106M으로 22% 증가했습니다. 3분기 매출 성장률은 주요 시장에서 강력했습니다: 북미(+12%), 서유럽(+25%), 아시아/태평양(+15%). 새로 인수한 Roberto Cavalli와 Lacoste 향수 라인은 3분기 실적의 10%를 기여했습니다. 회사는 2024년 순매출 $1.45B 및 희석 주당 $5.15의 가이던스를 유지하고 있습니다. 분기당 $0.75의 배당금은 2024년 12월 31일에 지급될 예정입니다.

Interparfums a annoncé des résultats records pour le troisième trimestre 2024, avec des ventes nettes atteignant 425 millions de dollars, en hausse de 15 % par rapport à 2023. L'entreprise a atteint une marge brute de 63,9% et un bénéfice d'exploitation de 106 millions de dollars, en hausse de 22 %. La croissance des ventes au troisième trimestre a été forte sur tous les principaux marchés : Amérique du Nord (+12 %), Europe de l'Ouest (+25 %) et Asie/Pacifique (+15 %). Les nouvelles lignes de parfums Roberto Cavalli et Lacoste ont contribué à hauteur de 10 % aux performances du chiffre d'affaires du troisième trimestre. L'entreprise maintient ses prévisions pour 2024, avec 1,45 milliard de dollars de ventes nettes et 5,15 dollars de bénéfice par action diluée. Un dividende trimestriel de 0,75 $ par action sera versé le 31 décembre 2024.

Interparfums hat im 3. Quartal 2024 Rekordergebnisse erzielt, mit Nettoumsätzen von $425 Millionen, was einem Anstieg von 15% im Vergleich zu 2023 entspricht. Das Unternehmen erreichte eine Bruttomarge von 63,9% und ein Betriebsergebnis von $106 Millionen, was einem Anstieg von 22% entspricht. Das Umsatzwachstum im dritten Quartal war in allen wichtigen Märkten stark: Nordamerika (+12%), Westeuropa (+25%) und Asien/Pazifik (+15%). Die neu erworbenen Roberto Cavalli und Lacoste Parfümlinien trugen mit 10% zur Umsatzperformance im 3. Quartal bei. Das Unternehmen hält an der Prognose für 2024 fest, die Nettoumsätze von $1,45 Milliarden und einen Gewinn von $5,15 pro verwässerter Aktie vorsieht. Eine vierteljährliche Dividende von $0,75 pro Aktie wird am 31. Dezember 2024 ausgezahlt.

Positive
  • Record Q3 net sales of $425M, up 15% YoY
  • Operating income increased 22% to $106M
  • Operating margin improved to 25.0% from 23.7%
  • Strong regional growth across all major markets
  • New brands (Roberto Cavalli and Lacoste) contributed 10% to Q3 sales
  • Operating cash flow improved to $76.1M from $17.5M YoY
Negative
  • Net income for nine months decreased 1% YoY
  • Diluted EPS for nine months declined 2% to $4.34
  • Operating margin for nine months decreased 160 bps to 21.9%
  • Foreign exchange loss of $4M in Q3

Insights

Impressive quarterly performance with $425M in sales, marking a 15% YoY growth and setting a new company record. Notable achievements include a strong operating margin expansion of 130 basis points to 25% and robust EPS growth of 16% to $1.93.

The addition of Roberto Cavalli and Lacoste brands has been transformative, contributing 10% to Q3 sales. Geographic diversification shows strength with double-digit growth across all major markets. The company's cash position remains solid at $157M, with significantly improved operating cash flow of $76.1M, up from $17.5M last year.

Management's maintained guidance of $1.45B in sales and $5.15 EPS for 2024 appears conservative given the strong Q3 performance and healthy holiday season outlook.

The global fragrance market dynamics are particularly favorable for IPAR, with strong regional performance across North America (12% growth), Western Europe (25%) and Asia/Pacific (15%). The company's strategic expansion into China planned for 2026 presents significant growth potential, given the market's size and increasing luxury consumption.

The successful gift set strategy, now gaining traction beyond the U.S. into Europe and Middle East, demonstrates effective market penetration. The company's anticipation of more sustainable growth rates indicates market maturity and realistic planning, while maintaining strong promotional spending at 15.7% of net sales shows commitment to brand building.

NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today reported results for the third quarter and nine months ended September 30, 2024.

Financial Highlights:
($ in millions, except per share amounts)

Three Months Ended
September 30,
Nine Months Ended
September 30,
20242023% Change20242023% Change
Net Sales$425$36815%$1,091$98910%
Gross Margin63.9%63.9%flat63.6%63.3%+30 bps
Operating Income$106$8722%$239$2333%
Operating Margin25.0%23.7%+130 bps21.9%23.5%(160 bps)
Net Income attributable to IP$62$5317%$140$142(1%)
Diluted EPS$1.93$1.6616%$4.34$4.42(2%)
The average dollar/euro exchange rate for the 2024 third quarter was 1.10 compared to 1.09 in the 2023 third quarter, while for the first nine months of 2024, the average dollar/euro exchange rate was 1.09, compared to 1.08 in the first nine months of 2023, leading to a positive 0.4% and 0.2% foreign exchange impact for the third quarter and first nine months of 2024, respectively.


Operational Commentary

Jean Madar, Chairman & Chief Executive Officer of Interparfums noted, “Sales in the current third quarter were the highest for any quarter in our history led by the ongoing strength of the global fragrance market, solid performance of our largest brands, and the addition of our newest brands.

“Third quarter sales in our three largest markets, North America, Western Europe, and Asia/Pacific grew by 12%, 25% and 15%, respectively. Our sales in China are modest, but we are planning to ramp up our promotional programs next year, with the expectation to begin our measured expansion efforts into that country in 2026.

“Central and South America’s sales increased by 20% and Eastern Europe achieved comparable quarter sales growth of 23%, after a slow start earlier in the year due to supply constraints.

“During the summer months, we shipped initial orders for gift sets, resulting in successful sell-out and strong re-orders during the fall. Currently, our retail partners and distributors are replenished and well stocked in preparation for the holiday season. Historically, this program primarily catered to U.S.-based consumers; however, we are now experiencing higher demand across Europe and the Middle East. We anticipate healthy sell-out performance for the balance of the year.”

Discussing the newest brands, Mr. Madar continued, “The Roberto Cavalli and Lacoste fragrance lines, which entered our sales mix in the beginning of the year, have been welcome additions to our portfolio, contributing 10% to our topline performance in the third quarter, giving us confidence that combined sales of these two brands will exceed $100 million in 2024.

“We are looking forward to a good final quarter and record results for the year. We have already received excellent feedback from both distributors and retailers on our 2025 new product pipeline, which is especially reassuring given that the fragrance market, while still robust, has somewhat moderated. For next year, we are expecting a softer landing with more sustainable growth rates than in prior years.

“While we are always on the lookout for additional brand opportunities, our broad-based existing portfolio, along with our expertise in advertising and promotion, product development, market intelligence, and global distribution, should continue to fuel record results in the coming years.”

Financial Commentary
Michel Atwood, Chief Financial Officer of Interparfums, shared, “Consolidated gross margin was unchanged from last year’s third quarter. The gross margin changes between our two segments were primarily driven by brand and channel mix.

“SG&A expenses grew 12% in the third quarter, slightly below our sales increase of 15%, leading to a 130 basis point reduction from the prior year as a percentage of sales. On a year-to-date basis, SG&A expenses were up 16%, or 190 basis points as a percentage of sales. During the third quarter, our Advertising and Promotion (“A&P”) expenditures grew 6% compared to the prior year period and represented 15.7% of net sales. On a year-to-date basis, A&P expenditures increased by 19%, representing 16.6% of net sales. After investing significantly in the first half, a portion of the A&P activities for European based operations planned for the third quarter was shifted into the fourth quarter to further strengthen our sell-out as we prepare for 2025. Similar to 2023, significant A&P spending is planned for the final quarter to ensure a successful holiday season.

“Once again, the amortization cost of the Lacoste license is included in SG&A and amounts to $1.6 million quarterly, totaling $4.8 million for the first nine months of 2024.”

Mr. Atwood continued, “The net outcome of these effects is an operating income of $106 million, up 22% from the third quarter of 2023. Operating margins were 25.0% for the current three month period, compared to 23.7% for the corresponding period in 2023. Our net income in the third quarter takes into account a foreign exchange loss of $4 million as compared to the third quarter in the prior period.

“Our financial position remains strong with $157 million in cash, cash equivalents and short-term investments, and working capital of $617 million. The third quarter saw a significant year-over-year improvement in net cash provided by operating activities where we delivered $76.1 million compared to $17.5 million in the prior year third quarter. Our efforts to convert more profit to free cash flow by reducing our inventories are beginning to bear fruit.”

Guidance
Mr. Atwood concluded, “With most of the year behind us and a clear picture of the balance of the year, we are once again affirming our 2024 guidance which calls for net sales of $1.45 billion and earnings per diluted share of $5.15.”

Initial full-year 2025 guidance is scheduled to be announced on Tuesday, November 12, 2024, after the market close.

Dividend
The Company’s regular quarterly cash dividend of $0.75 per share will be paid on December 31, 2024, to shareholders of record on December 16, 2024.

Conference Call
Management will host a conference call to discuss financial results and business operations beginning at 11:00am ET on Thursday, November 7, 2024.

Interested parties may participate in the live call by dialing:

U.S. / Toll-free: (877) 423-9820
International: (201) 493-6749

Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin.

A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.

About Interparfums, Inc.:

Operating in the global fragrance business since 1982, Interparfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance related products under license agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy.

The portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Interparfums, Inc. is also the registered owner of several trademarks including Lanvin and Rochas.

Forward-Looking Statements:
Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as "anticipate, "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in Interparfums' annual report on Form 10-K for the fiscal year ended December 31, 2023, and the reports Interparfums files from time to time with the Securities and Exchange Commission. Interparfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact Information:  
Interparfums, Inc.orThe Equity Group Inc.
Michel Atwood Karin Daly
Chief Financial Officer Investor Relations Counsel
(212) 983-2640 (212) 836-9623 / kdaly@equityny.com
www.interparfumsinc.com www.theequitygroup.com
   

See Accompanying Tables

INTERPARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 (In thousands except share and per share data)
 (Unaudited)
 
ASSETS        
  September 30,
2024
  December 31,
2023
 
Current assets:        
Cash and cash equivalents $78,419  $88,462 
Short-term investments  78,783   94,304 
Accounts receivable, net  354,175   247,240 
Inventories  412,758   371,859 
Receivables, other  4,984   7,012 
Other current assets  26,788   29,458 
Income taxes receivable  533   691 
Total current assets  956,440   839,026 
Property, equipment and leasehold improvements, net  166,435   169,222 
Right-of-use assets, net  25,471   28,613 
Trademarks, licenses and other intangible assets, net  290,864   296,356 
Deferred tax assets  19,742   14,545 
Other assets  21,648   21,567 
Total assets $1,480,600  $1,369,329 
         
LIABILITIES AND EQUITY        
Current liabilities:        
Loans payable - banks $8,957  $4,420 
Current portion of long-term debt  44,538   29,587 
Current portion of lease liabilities  6,189   5,951 
Accounts payable – trade  96,578   97,409 
Accrued expenses  166,156   178,880 
Income taxes payable  17,164   8,498 
Total current liabilities  339,582   324,745 
Long–term debt, less current portion  134,585   127,897 
Lease liabilities, less current portion  21,304   24,517 
         
Equity:        
Interparfums, Inc. shareholders’ equity:        
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued      
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 32,029,580 and 32,004,660 shares at September 30, 2024 and December 31, 2023, respectively  32   32 
Additional paid-in capital  101,123   98,565 
Retained earnings  762,826   693,848 
Accumulated other comprehensive loss  (32,641)  (40,188)
Treasury stock, at cost, 9,981,665 and 9,981,665 shares at September 30, 2024 and December 31, 2023, respectively  (52,864)  (52,864)
Total Interparfums, Inc. shareholders’ equity  778,476   699,393 
Noncontrolling interest  206,653   192,777 
Total equity  985,129   892,170 
Total liabilities and equity $1,480,600  $1,369,329 

 

INTERPARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
 
  Three Months Ended  Nine Months Ended
  September 30,  September 30,
  2024  2023  2024   2023 
              
Net sales $424,629  $367,969  $1,090,821   $988,936 
                
Cost of sales  153,469   132,962   396,519    362,568 
                
Gross margin  271,160   235,007   694,302    626,368 
                
Selling, general and administrative expenses  165,166   147,805   455,506    393,866 
                
Income from operations  105,994   87,202   238,796    232,502 
                
Other expenses (income):               
Interest expense  1,978   2,397   5,726    7,030 
Loss (gain) on foreign currency  3,355   (669)  3,085    (656)
Interest and investment loss (income)  254   (1,062)  (1,690)   (8,421
Other loss (income)  1   (77)  (35)   (125
                
   5,588   589   7,086    (2,172
                
Income before income taxes  100,406   86,613   231,710    234,674 
                
Income taxes  23,571   20,493   54,974    55,128 
                
Net income  76,835   66,120   176,736    179,546 
                
Less: Net income attributable to the noncontrolling interest  14,576   12,906   36,606    37,312 
                
Net income attributable to Interparfums, Inc. $62,259  $53,214  $140,130   $142,234 
                
Earnings per share:               
                
Net income attributable to Interparfums, Inc. common shareholders:               
Basic $1.94  $1.66  $4.37   $4.44 
Diluted $1.93  $1.66  $4.34   $4.42 
                
Weighted average number of shares outstanding:               
Basic  32,026   31,976   32,030    32,000 
Diluted  32,266   32,124   32,266    32,149 
                
Dividends declared per share $0.750  $0.625  $2.250   $1.875 
 

FAQ

What was Interparfums (IPAR) Q3 2024 revenue?

Interparfums reported Q3 2024 net sales of $425 million, representing a 15% increase from $368 million in Q3 2023.

What is Interparfums (IPAR) 2024 full-year guidance?

Interparfums maintains its 2024 guidance of $1.45 billion in net sales and earnings per diluted share of $5.15.

How much did Roberto Cavalli and Lacoste brands contribute to IPAR's Q3 2024 sales?

The Roberto Cavalli and Lacoste fragrance lines contributed 10% to Interparfums' topline performance in Q3 2024.

What is IPAR's Q3 2024 dividend payment?

Interparfums will pay a quarterly cash dividend of $0.75 per share on December 31, 2024, to shareholders of record on December 16, 2024.

Interparfums, Inc.

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