Sep 30, 2024

Inter Parfums Q3 2024 Earnings Report

Inter Parfums achieved record third-quarter results in 2024, driven by the strength of the global fragrance market and the addition of new brands.

Key Takeaways

Inter Parfums reported record third-quarter results for 2024, with net sales reaching $425 million, a 15% increase compared to the previous year. Diluted EPS was $1.93, up 16% from $1.66 in 2023. The company's performance was driven by the global fragrance market's strength and the successful integration of new brands.

Net sales for the third quarter reached a record $425 million, a 15% increase year-over-year.

Diluted EPS increased by 16% to $1.93, compared to $1.66 in the same period last year.

New brands, Roberto Cavalli and Lacoste, contributed 10% to the topline performance in the third quarter.

The company is affirming its 2024 guidance, projecting net sales of $1.45 billion and earnings per diluted share of $5.15.

Total Revenue
$425M
Previous year: $368M
+15.4%
EPS
$1.93
Previous year: $1.66
+16.3%
Average Euro Exchange Rate
1.1
Advertising & Promotion Expense
15.7%
Previous year: 21%
-25.2%
Gross Margin
63.9%
Gross Profit
$271M
Previous year: $235M
+15.4%
Cash and Equivalents
$78.4M
Previous year: $79.8M
-1.7%
Free Cash Flow
$75.4M
Previous year: $16.1M
+367.0%
Total Assets
$1.48B
Previous year: $1.39B
+6.2%

Inter Parfums

Inter Parfums

Forward Guidance

Inter Parfums is affirming its 2024 guidance, projecting net sales of $1.45 billion and earnings per diluted share of $5.15.

Positive Outlook

  • Affirms 2024 net sales guidance of $1.45 billion.
  • Affirms 2024 diluted EPS guidance of $5.15.
  • New product pipeline feedback from distributors and retailers is excellent.
  • Expects healthy sell-out performance for the balance of the year.
  • Confidence that combined sales of Roberto Cavalli and Lacoste will exceed $100 million in 2024.

Challenges Ahead

  • The fragrance market, while still robust, has somewhat moderated.
  • Expecting a softer landing with more sustainable growth rates next year compared to prior years.
  • Foreign exchange loss of $4 million in the third quarter.
  • Shifted a portion of A&P activities for European based operations planned for the third quarter into the fourth quarter.
  • SG&A expenses were up 16% year-to-date, or 190 basis points as a percentage of sales.