Interparfums Q1 Earnings Beat Estimates, Organic Sales Rise 7%

Interparfums, Inc. IPAR reported first-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate. Both earnings and sales increased year over year. The company continues to gain from sustained consumer demand for its key fragrance brands and the launch of innovative new scents.IPAR maintained steady inventory levels while accelerating raw material conversion to finished goods in anticipation of potential supply chain constraints. To offset recent tariffs, the company is realigning its supply chain with key markets, exploring alternative sourcing outside China and planning selective price increases of 4% to 6% in August 2025.Interparfums, Inc. Price, Consensus and EPS Surprise Interparfums, Inc. price-consensus-eps-surprise-chart | Interparfums, Inc. QuoteIPAR’s Quarterly Performance: Key InsightsInterparfums posted quarterly earnings of $1.32 per share, which increased 4% from $1.27 reported in the prior-year period. The metric beat the Zacks Consensus Estimate, which was pegged at $1.13 per share.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The company reported consolidated net sales of $339 million, which increased 5% from $324 million posted in the year-ago period. On an organic basis — excluding the effects of foreign exchange fluctuations and the exit of the Dunhill license — Interparfums achieved a 7% rise in net sales. This growth was primarily driven by the strong performance of Jimmy Choo, Coach and Lacoste fragrances across its European operations, alongside solid gains from Donna Karan/DKNY, MCM and Roberto Cavalli fragrances in its U.S.-based business.In its largest markets — North America and Western Europe — the company delivered sales increases of 14% and 1%, respectively. Eastern Europe experienced a strong rebound with a 46% rise in sales, recovering from a 22% decline in the prior-year quarter that had been impacted by temporary sourcing challenges, now resolved.In the Asia/Pacific region, sales declined by 3%, reflecting a tough year-over-year comparison. Sales in Central and South America decreased by 10%. The Middle East and Africa region posted a 16% decline, primarily due to macroeconomic headwinds and the significant impact of IPAR’s exit from the Dunhill license, which had a strong presence in that market.Insight Into IPAR’s Costs & Margins PerformanceInterparfums reported a consolidated gross margin of 63.7%, representing a 120-basis point (bps) increase compared to 62.5% in the prior-year period. This improvement was primarily driven by a positive brand and channel mix.During the quarter, selling, general and administrative (SG&A) expenses were 41.6% of net sales, an increase of 10 bps year over year. This rise was caused by increased spending on advertising and promotional (A&P) activities, partially offset by efficiencies and scale benefits associated with other fixed SG&A items.For IPAR’s European-based operations, SG&A expenses as a percentage of net sales declined to 38.7%, down from 39.1% in the first quarter of 2024. This improvement was primarily attributed to scale benefits in fixed costs and positive brand mix on royalties, partially offset by increased A&P investments.In the company’s U.S.-based operations, SG&A expenses as a percentage of net sales rose by 160 bps, primarily due to higher A&P spending, among other reasons. This was somewhat countered by cost efficiencies in other SG&A areas.During the quarter, IPAR incurred $52 million in A&P initiatives to enhance brand visibility and support new product launches — a 7% year-over-year rise. This investment represents 15.2% of net sales, up from 14.9% in the first quarter of the previous year.The company’s operating income rose 10% to $75 million. The operating margin expanded and stood at 22.2%, up from 21% reported in the year-ago quarter.Image Source: Zacks Investment ResearchIPAR’s Financial Health SnapshotThe Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $96.6 million, long-term debt (excluding the current portion) of $107.4 million and total equity of $1,007.5 million.The company announced a cash dividend of 80 cents per share, payable on June 30, 2025, to its shareholders of record as of June 13.What to Expect From IPAR in 2025The company reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and earnings per share of $5.35, representing a 4% year-over-year increase for both key financial metrics.The company’s stock has dropped 11.3% in the past three months compared with the industry’s decline of 8.3%.Top-Ranked BetsNordstrom, Inc. JWN operates as a fashion retailer in the United States. The company provides apparel, shoes, beauty, accessories and home goods for women, men, young adults and children. It currently carries a Zacks Rank #2 (Buy). Nordstrom delivered an earnings surprise of 22.2% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for JWN’s current fiscal-year sales and earnings indicates growth of 2.2% and 1.8%, respectively, from the year-ago reported figures.G-III Apparel Group, Ltd. GIII designs, sources, distributes and markets women's and men's apparel in the United States and internationally. It carries a Zacks Rank #2 at present. G-III Apparel delivered a trailing four-quarter average earnings surprise of 117.8%.The Zacks Consensus Estimate for GIII’s current fiscal-year earnings and revenues implies declines of 4.5% and 1.2%, respectively, from the year-ago actuals.Under Armour UAA is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities in the United States and internationally. It has a Zacks Rank of 2 at present.The Zacks Consensus Estimate for Under Armour’s current fiscal year’s sales and earnings indicates declines of 9.8% and 44.4%, respectively, from the year-ago reported figures. Under Armour delivered an earnings surprise of 98.6% in the trailing four quarters, on average.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordstrom, Inc. (JWN): Free Stock Analysis Report G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report Interparfums, Inc. (IPAR): Free Stock Analysis Report Under Armour, Inc. (UAA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks