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Inter Parfums' (IPAR) Q2 Sales Rise on Robust Fragrance Demand
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Shares of Inter Parfums, Inc. (IPAR - Free Report) rallied 8.9% in yesterday's trading session, buoyed by optimistic market sentiment following its record second-quarter 2024 net sales numbers. The company capitalized on the strong momentum in the fragrance market, supported by robust sales from its new licenses, Roberto Cavalli and Lacoste, driving overall sales growth.
This Zacks Rank #3 (Hold) company’s shares have gained 17.2% in the past three months against the industry’s 23.7% decline.
Closer Look at Sales
For the three months ended Jun 30, 2024, net sales rose 11% to $342 million from $309 million reported in the year-ago quarter. The increase in sales highlights the company's strategy of maintaining a more even distribution of product launches and investments in advertising and promotions rather than heavily focusing on peak selling periods.
In the second quarter, Inter Parfums’ Europe-based net sales came in at $226 million, up 14% from the year-ago levels. The U.S.-based net sales amounted to $120 million, up 8% from the second-quarter 2023 level.
Sales growth in the Europe-based operations was predominantly fueled by Jimmy Choo, which saw a 31% increase in sales. Management plans to launch an extension of the I Want Choo line later this year. In the second quarter, Montblanc brand sales saw a slight decline.
That said, the Montblanc Explorer line and the new Legend Blue (launched in early 2024) are performing well. Based on current orders and customer feedback, the company anticipates a significant sales increase for the Montblanc brand in the second half of the year.
Demand remains strong for the Coach brand's established lines and the recent introduction of Coach Dreams Moonlight led to year-over-year flat sales in the first half of 2024. Management has plans to launch two new variations for Coach brand fragrances in 2025. Several of the company's medium-sized brands had a strong second quarter, with Karl Lagerfeld and Rochas seeing a 13% increase in fragrance sales each.
Image Source: Zacks Investment Research
The growth in its U.S. operations was driven by strong performances from the company’s two largest brands, GUESS and Donna Karan/DKNY, which saw sales growth of 8% and 14%, respectively, in the first half of 2024. Line extensions are planned for later this year, with expectations of increased brand sales in the second half. In the quarter, Ferragamo brand saw minimal growth in sales as the company expanded the Signorina line with Signorina Unica.
Additionally, MCM achieved strong double-digit growth, driven by the successful launch of MCM Crush. The company's latest additions, Lacoste and Roberto Cavalli, have met management's expectations.
For the six months ended Jun 30, 2024, net sales rose 7% to $666 million from $621 million in the year-ago quarter. In this time frame, Inter Parfums’ Europe-based product sales came in at $457 million, up 7% from the prior-year levels. The U.S.-based product sales amounted to $216 million, up 12% from the prior-year period's levels.
Product Launches on Track
Upcoming launches include GUESS Elements, the latest addition to the Uomo line, Uomo Intenso and a highly anticipated DKNY fragrance called DKNY 24/7, now debuting in selected European markets, travel retail and on DKNY.com. The product will be available nationwide starting September this year.
For Roberto Cavalli fragrances, IPAR plans to introduce a new extension under the Just Cavalli brand, along with Sweet Ferocious and the Wild Heart duo for men and women in the latter half of 2024. In 2025, a new variation of the classic Lacoste scent will debut, followed by a major women's fragrance release in 2026.
Reaffirmed Guidance
Although the global fragrance market continues to show strength with favorable trends driving high demand for the company's products, sell-in growth is slower than sell-out. Inter Parfums also faces ongoing challenges in Eastern Europe. Despite achieving record second-quarter sales, management is maintaining its 2024 outlook in light of these dynamics.
For full-year 2024, the company continues to anticipate net sales of $1.45 billion and earnings of $5.15 per share. This guidance suggests 10% growth in net sales and an 8% increase in the bottom line from the 2023 levels.
Interparfums SA and Van Cleef & Arpels signed a 12-year license agreement in 2006, extended until Dec 31, 2024. Discussions for renewal began in 2023, aiming to strengthen global distribution with a new nine-year agreement starting Jan 1, 2025.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 24.8% and 177.1%, respectively, from the prior-year levels.
BRF (BRFS - Free Report) is engaged in raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. The stock currently has a Zacks Rank #1.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests growth of 7.5% and 210%, respectively, from the year-ago reported figures.
Treehouse Foods (THS - Free Report) is a manufacturer of packaged foods and beverages. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Treehouse Foods’ current financial-year sales and earnings indicates a decline of 1.6% and 8.5%, respectively, from the prior-year levels. THS has a trailing four-quarter average negative earnings surprise of 4.5%.
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Inter Parfums' (IPAR) Q2 Sales Rise on Robust Fragrance Demand
Shares of Inter Parfums, Inc. (IPAR - Free Report) rallied 8.9% in yesterday's trading session, buoyed by optimistic market sentiment following its record second-quarter 2024 net sales numbers. The company capitalized on the strong momentum in the fragrance market, supported by robust sales from its new licenses, Roberto Cavalli and Lacoste, driving overall sales growth.
This Zacks Rank #3 (Hold) company’s shares have gained 17.2% in the past three months against the industry’s 23.7% decline.
Closer Look at Sales
For the three months ended Jun 30, 2024, net sales rose 11% to $342 million from $309 million reported in the year-ago quarter. The increase in sales highlights the company's strategy of maintaining a more even distribution of product launches and investments in advertising and promotions rather than heavily focusing on peak selling periods.
In the second quarter, Inter Parfums’ Europe-based net sales came in at $226 million, up 14% from the year-ago levels. The U.S.-based net sales amounted to $120 million, up 8% from the second-quarter 2023 level.
Sales growth in the Europe-based operations was predominantly fueled by Jimmy Choo, which saw a 31% increase in sales. Management plans to launch an extension of the I Want Choo line later this year. In the second quarter, Montblanc brand sales saw a slight decline.
That said, the Montblanc Explorer line and the new Legend Blue (launched in early 2024) are performing well. Based on current orders and customer feedback, the company anticipates a significant sales increase for the Montblanc brand in the second half of the year.
Demand remains strong for the Coach brand's established lines and the recent introduction of Coach Dreams Moonlight led to year-over-year flat sales in the first half of 2024. Management has plans to launch two new variations for Coach brand fragrances in 2025. Several of the company's medium-sized brands had a strong second quarter, with Karl Lagerfeld and Rochas seeing a 13% increase in fragrance sales each.
Image Source: Zacks Investment Research
The growth in its U.S. operations was driven by strong performances from the company’s two largest brands, GUESS and Donna Karan/DKNY, which saw sales growth of 8% and 14%, respectively, in the first half of 2024. Line extensions are planned for later this year, with expectations of increased brand sales in the second half. In the quarter, Ferragamo brand saw minimal growth in sales as the company expanded the Signorina line with Signorina Unica.
Additionally, MCM achieved strong double-digit growth, driven by the successful launch of MCM Crush. The company's latest additions, Lacoste and Roberto Cavalli, have met management's expectations.
For the six months ended Jun 30, 2024, net sales rose 7% to $666 million from $621 million in the year-ago quarter. In this time frame, Inter Parfums’ Europe-based product sales came in at $457 million, up 7% from the prior-year levels. The U.S.-based product sales amounted to $216 million, up 12% from the prior-year period's levels.
Product Launches on Track
Upcoming launches include GUESS Elements, the latest addition to the Uomo line, Uomo Intenso and a highly anticipated DKNY fragrance called DKNY 24/7, now debuting in selected European markets, travel retail and on DKNY.com. The product will be available nationwide starting September this year.
For Roberto Cavalli fragrances, IPAR plans to introduce a new extension under the Just Cavalli brand, along with Sweet Ferocious and the Wild Heart duo for men and women in the latter half of 2024. In 2025, a new variation of the classic Lacoste scent will debut, followed by a major women's fragrance release in 2026.
Reaffirmed Guidance
Although the global fragrance market continues to show strength with favorable trends driving high demand for the company's products, sell-in growth is slower than sell-out. Inter Parfums also faces ongoing challenges in Eastern Europe. Despite achieving record second-quarter sales, management is maintaining its 2024 outlook in light of these dynamics.
For full-year 2024, the company continues to anticipate net sales of $1.45 billion and earnings of $5.15 per share. This guidance suggests 10% growth in net sales and an 8% increase in the bottom line from the 2023 levels.
Interparfums SA and Van Cleef & Arpels signed a 12-year license agreement in 2006, extended until Dec 31, 2024. Discussions for renewal began in 2023, aiming to strengthen global distribution with a new nine-year agreement starting Jan 1, 2025.
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Freshpet, Inc. (FRPT - Free Report) , a pet food company, has a trailing four-quarter earnings surprise of 118.2%, on average. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 24.8% and 177.1%, respectively, from the prior-year levels.
BRF (BRFS - Free Report) is engaged in raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. The stock currently has a Zacks Rank #1.
The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings suggests growth of 7.5% and 210%, respectively, from the year-ago reported figures.
Treehouse Foods (THS - Free Report) is a manufacturer of packaged foods and beverages. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Treehouse Foods’ current financial-year sales and earnings indicates a decline of 1.6% and 8.5%, respectively, from the prior-year levels. THS has a trailing four-quarter average negative earnings surprise of 4.5%.