Loading...
•
Jun 30, 2023
Inter Parfums Q2 2023 Earnings Report
Inter Parfums reported record second quarter results driven by strong sales growth and increased earnings per share guidance.
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.