Inter Parfums (IPAR) Posts Robust Sales Numbers for Q4 & 2022
Inter Parfums, Inc. IPAR posted robust sales results for the fourth quarter and full-year 2022. The company, which has been benefiting from its brand strength, remains encouraged about its prospects in 2023. Also, the company remains on track to prepare for the acquisition of the Lacoste fragrance business in January 2024, exploring new growth avenues with its scale and robust market position.
Solid Sales Numbers
For the three months ended Dec 31, 2022, Inter Parfums’ net sales advanced 47% to $311 million. At comparable currency rates, consolidated fourth-quarter net sales rose 57% year over year.
For the full-year 2022, the company’s net sales grew 24% to $1.087 billion, a little more than management’s latest projection of $1.08 billion. At comparable exchange rates, consolidated net sales jumped 30% for the full year.
For the fourth quarter, Inter Parfums’ Europe-based product sales came in at $197 million, up 45% from the 2021 levels. U.S.-based product sales amounted to $114 million, increasing 52% from the fourth quarter of 2021.
In 2022, Europe-based product sales came in at $744 million, up 12% from 2021. U.S.-based product sales amounted to $343 million, rising 58% from 2021. In the fourth quarter, IPAR witnessed solid sales increases from its largest brands, including Montblanc, Jimmy Choo, Coach and GUESS?, which delivered growth of 50%, 78%, 82% and 28%, respectively.
In the company’s U.S. operations, brands like Oscar de la Renta and Abercrombie & Fitch saw sales growth of 28% and 16%, respectively, in the fourth quarter. In European operations, Moncler, Kate Spade and Boucheron brands witnessed solid increases of 34%, 140% and 25%, respectively.
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Management expects 2023 to be productive. In its European operations, the company plans to roll out new pillars for Kate Spade, Coach and Moncler.
Moreover, 2023 is likely to witness the return of some renowned seasonal fragrances for Jimmy Choo and Lanvin, new additions to multi-scent collections for Van Cleef & Arpels and Karl Lagerfeld and several special programs, extensions and flankers for well-set-up fragrance families.
In the U.S. operations, Inter Parfums is likely to see the duo debut of the Hollister brand and its first men’s scent for MCM. New flankers for the most renowned DKNY Be Delicious, Ferragamo, GUESS?, Oscar de la Renta, Abercrombie & Fitch and Anna Sui collections are also in the pipeline.
The company reiterated its 2022 earnings per share (EPS) guidance of nearly $3.60. It also remains positive about achieving its 2023 net sales and EPS guidance of $1.15 billion and $3.75, respectively, despite supply-chain bottlenecks and geopolitical headwinds. This Zacks Rank #2 (Buy) stock has rallied 51.9% in the past three months, outpacing the industry’s rise of 34.1%.
Other Solid Picks
Some other top-ranked consumer staple stocks are e.l.f. Beauty, Inc. ELF, Conagra Brands CAG and Lamb Weston LW.
e.l.f. Beauty, which provides cosmetic and skin care products, currently sports a Zacks Rank #1 (Strong Buy). ELF has a trailing four-quarter earnings surprise of 92.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for e.l.f. Beauty’s current fiscal-year sales and EPS suggests an increase of 24.8% and 33.3%, respectively, from the year-ago reported number.
Conagra, a consumer-packaged goods food company, currently sports a Zacks Rank #1. CAG has a trailing four-quarter earnings surprise of 8.9%, on average.
The Zacks Consensus Estimate for Conagra’s current fiscal-year sales and earnings suggests growth of 6.8% and 11.9%, respectively, from the corresponding year-ago reported figures.
Lamb Weston, which is a frozen potato product company, currently sports a Zacks Rank #1. LW has a trailing four-quarter earnings surprise of 52.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and EPS suggests an increase of 19.5% and 89.9%, respectively, from the year-ago reported number.
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