Dec 31, 2022

Inter Parfums Q4 2022 Earnings Report

Inter Parfums reported record fourth quarter and full year results, raised 2023 net sales and earnings guidance, and announced a 25% increase in cash dividend.

Key Takeaways

Inter Parfums, Inc. reported record results for the fourth quarter and full year ended December 31, 2022. The company's net sales crossed $1 billion, with growth in all regions. The company also raised its 2023 net sales and earnings guidance and announced a 25% increase in the annual cash dividend rate.

2022 was a milestone year with net sales crossing $1 billion.

North America achieved sales growth of 22%, followed by Western Europe and Asia where sales rose 28% and 19%, respectively.

2023 net sales are expected to approximate $1.2 billion, 10% ahead of 2022 net sales.

Diluted earnings per share guidance raised to $4.00, up 6% from 2022.

Total Revenue
$311M
Previous year: $211M
+47.5%
EPS
$0.71
Previous year: -$0.04
-1875.0%
Advertising & Promotion Expense
19.5%
Previous year: 19.5%
+0.0%
Gross Margin
68.2%
Gross Profit
$200M
Previous year: $132M
+51.7%
Cash and Equivalents
$256M
Previous year: $320M
-20.0%
Free Cash Flow
$122M
Previous year: $8.37M
+1359.3%
Total Assets
$0
Previous year: $1.15B
-100.0%

Inter Parfums

Inter Parfums

Forward Guidance

The company expects 2023 net sales to approximate $1.2 billion, 10% ahead of 2022 net sales, and diluted earnings per share to be $4.00, up 6% from 2022.

Positive Outlook

  • 2023 started out on a strong note.
  • Sizable orders already booked.
  • New products and brand extensions unveiling throughout the year.
  • Montblanc and Interparfums have extended their partnership for an additional five years.
  • Strong financial position enables investment in growth opportunities.

Challenges Ahead

  • Guidance assumes that the average dollar/euro exchange rate remains at current levels.
  • Guidance assumes there is no significant resurgence of the COVID-19 pandemic.
  • The second payment for the Lacoste fragrance license of an estimated $42 million is due on December 31, 2023.
  • Evaluation of the Rochas fashion trademark resulted in a $6.8 million impairment charge in the fourth quarter of 2022.
  • Recognized a loss of $1.9 million on foreign currency in 2022.