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Mar 31, 2024
Inter Parfums Q1 2024 Earnings Report
Inter Parfums reported first quarter results, which were in line with expectations, and reaffirmed 2024 sales and earnings guidance.
Key Takeaways
Inter Parfums' first quarter results showed moderated sales growth following an exceptional performance in the previous year. The company delivered a healthy operating margin of 21% and is confident in achieving substantial growth in the second half of 2024.
Sales growth moderated due to inventory destocking by distribution partners.
Operating margin was a healthy 21%, in line with expectations.
North America sales declined slightly, while Western Europe and Asia/Pacific grew.
The company reaffirmed its 2024 sales and earnings guidance.
Revenue by Geographic Location
Forward Guidance
Inter Parfums reaffirmed its 2024 guidance, which calls for net sales of $1.45 billion and earnings per diluted share of $5.15.
Positive Outlook
- Net sales are projected to increase by 10%.
- Earnings per diluted share are projected to increase by 8%.
- Confident in ability to execute plans through the balance of the year.
- Innovation strategy planned for the balance of 2024, including blockbuster fragrances for DKNY and Lacoste.
- Favorable market conditions and prevailing tailwinds will far outweigh any challenges.
Challenges Ahead
- Lacoste non-cash amortization expense is expected to reduce 2024 earnings per diluted share by approximately $0.11.
- Gross margin decline attributable to European based operations.
- Unfavorable segment, geographic and channel mix.
- Increased trade spending to support the business in the absence of significant new innovation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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