Inter Parfums Q3 2021 Earnings Report
Key Takeaways
Inter Parfums Inc. reported its Q3 2021 results, showcasing a substantial increase in sales and EPS compared to 2019. The company's largest brands performed exceptionally well, contributing to the strong top-line growth. The company raised 2021 guidance three times.
Net sales rose 25% to $669 million for the first nine months of 2021 compared to 2019.
Net income attributable to Inter Parfums, Inc. rose 70% to $89 million year-to-date compared to 2019.
Diluted earnings per share were $2.79 for the nine months ended September 30, 2021, an increase of 70% compared to 2019.
North America, the company's largest market, saw sales increase by 140% and 67% compared to the same period in 2020 and 2019, respectively.
Inter Parfums
Inter Parfums
Forward Guidance
Inter Parfums expects net sales of approximately $810 million and diluted net income per share of $2.35 for the full year 2021. The company plans a significant investment in advertising and promotion in the fourth quarter to support retail sell-through during the holiday season.
Positive Outlook
- New product pipeline is in the works for 2022.
- Debuting scents for Moncler will rollout in early 2022.
- New men’s fragrance pillars are debuting for Coach, GUESS and Boucheron.
- Flankers will be introduced for Montblanc Legend, the Coach women’s signature scent, Jimmy Choo’s I Want Choo, GUESS Bella Vita, and Lanvin Éclat d’ Arpège.
- Newly signed license for Ferragamo, which went effective on October 1, 2021, will be a leading growth catalyst.
Challenges Ahead
- Guidance assumes that the average dollar/euro average exchange rate remains at current levels.
- Guidance assumes that there is no significant resurgence of the COVID-19 pandemic.
- Supply chain issues may affect results.
- Weakness in the dollar relative to the euro could depress gross margin.
- The holiday season started earlier this year as customers placed requirements for delivery in the third rather than the fourth quarter to lessen the effect of supply chain issues.