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Jun 30, 2024
Inter Parfums Q2 2024 Earnings Report
Inter Parfums achieved record second quarter results driven by double-digit sales growth and margin expansion.
Key Takeaways
Inter Parfums reported record second quarter results with an 11% increase in net sales compared to the same period last year. The company's performance was driven by a robust fragrance environment, strong legacy brands, and effective advertising and promotional activities. Gross margin also expanded, contributing to an 18% increase in operating income.
Net sales increased by 11% compared to the second quarter of 2023.
Gross margin expanded by 360 bps.
Operating income increased by 18% compared to the same period last year.
Diluted EPS increased by 5% to $1.14.
Inter Parfums
Inter Parfums
Forward Guidance
The company is maintaining its 2024 guidance of net sales of $1.45 billion and earnings per diluted share of $5.15.
Positive Outlook
- Global fragrance market remains vibrant with positive trends.
- Strong demand for Inter Parfums' products
- Strategic approach to balancing launches
- Advertising and promotional investments are paying off
- Anticipate further momentum in the back half of the year
Challenges Ahead
- Sell-in continues to grow more slowly than sell-out.
- Continued challenges in Eastern Europe
- Sourcing constraints associated with the ongoing conflict in Eastern Europe
- Unfavorable channel/mix observed in the first quarter.
- Modest decline in gross margin for United States based operations due to a slightly unfavorable brand mix.