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Mar 31, 2022
Inter Parfums Q1 2022 Earnings Report
Inter Parfums reported record results for the first quarter ended March 31, 2022 and affirmed 2022 guidance.
Key Takeaways
Inter Parfums, Inc. reported record first-quarter results, with sales driven by strong performance in both European and U.S. based operations. The company's largest brands, including Montblanc, Jimmy Choo, Coach, and GUESS, experienced significant sales growth. Despite challenges in the business environment, Inter Parfums affirms its 2022 net sales and earnings per diluted share guidance.
Sales by European based operations were up 14% and U.S. based operations were up 77%.
Montblanc, Jimmy Choo, Coach and GUESS sales rose 22%, 7%, 22% and 36%, respectively.
Gross margin for European operations rose to nearly 66.8% from 65.5% primarily attributable to the stronger U.S. dollar.
The company had its best ever April sales and this trend is continuing into May.
Inter Parfums
Inter Parfums
Forward Guidance
Inter Parfums continues to project 2022 net sales to approximate $975 million, resulting in earnings per diluted share of $3.00. This guidance assumes the average dollar/euro exchange rate remains at current levels and there is no significant resurgence of the COVID-19 pandemic. The company will revisit guidance once lockdowns in China are lifted.
Positive Outlook
- The company had its best ever April sales and this trend is continuing into May.
- The company expects net sales to approximate $975 million.
- The company expects earnings per diluted share of $3.00.
- The company is in a better position to allocate advertising and promotion spending across the quarters to lead up to approximately 21% of net sales on promotion and advertising for the full year.
- Travel retail business has been slowly but steadily improving.
Challenges Ahead
- The company continues to operate within a challenging business environment due in great part to the resurgence of the COVID-19 pandemic in certain regions, notably China, which resulted in massive lockdowns.
- The aftereffects of the pandemic are exerting pressure on retail traffic, travel, inventory sourcing and costs, the supply chain, transportation and logistics.
- The tragic war in Eastern Europe, its duration and related sanctions add further uncertainty to the mix of challenges.
- Future impacts on our business, including sanctions and counter-sanctions, are difficult to predict due to the high level of uncertainty as to how these developments will evolve.
- A strong U.S. dollar has a negative impact on our net sales.