Inter Parfums Q2 2023 Earnings Report
Key Takeaways
Inter Parfums reported a strong second quarter with net sales increasing by 26%. Operating income rose by 21% to $55 million, and net income attributable to Inter Parfums increased by 27% to $35 million, or $1.09 per share. The company raised its full-year 2023 earnings per diluted share guidance from $4.25 to $4.55.
Net sales increased by 26% in the second quarter, building on the 18% growth from the previous year.
Operating income for the second quarter increased by 21% to $55 million.
Net income attributable to Inter Parfums, Inc. increased by 27% to $35 million, or $1.09 per share.
Full-year 2023 earnings per diluted share guidance was raised from $4.25 to $4.55.
Inter Parfums
Inter Parfums
Forward Guidance
Inter Parfums expects full-year 2023 net sales to approximate $1.3 billion and raised its 2023 earnings per diluted share guidance to $4.55.
Positive Outlook
- Full-year 2023 net sales are expected to approximate $1.3 billion, representing 20% growth from full-year 2022.
- 2023 earnings per diluted share guidance was raised to $4.55, representing 20% growth from $3.78 for full-year 2022.
- Supply chain disruptions and inflationary impacts on components are mostly behind the company.
- Brands continue to perform exceedingly well.
- Favorable growth catalysts in the fragrance market.
Challenges Ahead
- Only modest sales from China are included in the full-year 2023 guidance.
- Sales guidance does not yet include initial sales of the newly acquired fragrance licenses, Roberto Cavalli, as shipments are expected to start in November/December 2023.
- Sales guidance does not yet include Lacoste fragrances, which are expected to start shipping in 2024.
- The company will continue to be cautious and patient with the reopening of the Chinese fragrance market.
- A one-time conservative inventory reserve of $7 million related to certain underperforming brands within European operations impacted operating margin.