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Inter Parfums (IPAR) Q2 Earnings in the Cards: Things to Note
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Inter Parfums, Inc. (IPAR - Free Report) is likely to see a bottom-line decline when it reports second-quarter 2024 earnings on Aug 6. The consensus mark for quarterly earnings has declined 2.7% in the past 30 days to $1.07 per share. This indicates a drop of 1.8% from the year-ago quarter’s reported figure. However, IPAR has a trailing four-quarter earnings surprise of 6.5%, on average.
Things To Note
IPAR has been battling elevated selling, general and administrative (SG&A) costs for a while. The company has been significantly investing in advertising and promotion to enhance its brand presence. While these investments are expected to drive growth, they might have dented profits in the current quarter.
Escalated raw material cost inflation, stemming from escalated energy costs and elevated trade spends, might raise concerns for the impending quarter.
That being said, the company continues to benefit from strong brand performance and positive trends in the fragrance market. Its strategy of enhancing its brands through innovation, licensing agreements and new product launches has been proving effective.
Inter Parfums recently came out with record second-quarter 2024 net sales numbers, demonstrating strong momentum in the fragrance market, supported by robust sales from its new licenses, Roberto Cavalli and Lacoste, driving overall sales growth. This producer and distributor of a wide array of prestige fragrance and fragrance-related products reported an 11% year-over-year increase in net sales for the quarter, reaching $342 million. The increase in sales highlights its 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, the company’s Europe-based net sales came in at $226 million, up 14% from year-ago levels. The U.S.-based net sales amounted to $120 million, up 8% from second-quarter 2023 level.
Sales growth in the Europe-based operations was predominantly fueled by Jimmy Choo, which saw a 31% increase in sales. In the second quarter, Montblanc brand sales saw a slight decline. The Montblanc Explorer line and the new Legend Blue (launched in early 2024) are performing well. Demand remained strong for the Coach brand's established lines. Several Inter Parfums’ medium-sized brands had a strong second quarter, with Karl Lagerfeld and Rochas seeing a 13% increase in fragrance sales each.
Growth in its U.S. operations was driven by strong performances from the company’s two largest brands, GUESS and Donna Karan/DKNY. In the quarter, the Ferragamo brand saw minimal growth in sales as the company expanded the Signorina line with Signorina Unica. MCM achieved strong double-digit growth, driven by the successful launch of MCM Crush. The company's latest additions, Lacoste and Roberto Cavalli, met management's expectations.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inter Parfums has a Zacks Rank #3 and an Earnings ESP of -10.28% at present.
Some Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time:
International Flavors & Fragrances Inc. (IFF - Free Report) currently has an Earnings ESP of +8.84% and a Zacks Rank of 1. The company is likely to register a decline in the top line and a bottom-line increase when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for International Flavors’ quarterly revenues is pegged at $2.8 billion, indicating a decline of 3.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for International Flavors’ quarterly earnings of $1.01 suggests an increase of 17.4% from the year-ago quarter’s levels. IFF has a trailing four-quarter earnings surprise of 6.5%, on average.
Vital Farms (VITL - Free Report) has an Earnings ESP of +1.18% and currently flaunts a Zacks Rank #1. VITL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $143.8 million, indicating growth of 35% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vital Farms’ earnings has moved down by a penny in the past 30 days to 21 cents per share. The consensus estimate suggests 40% growth from the prior-year quarter’s reported figure. VITL has delivered an earnings surprise of 102.1%, on average, in the trailing four quarters.
Coty (COTY - Free Report) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top- and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 5 cents per share. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, indicating a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
Image: Bigstock
Inter Parfums (IPAR) Q2 Earnings in the Cards: Things to Note
Inter Parfums, Inc. (IPAR - Free Report) is likely to see a bottom-line decline when it reports second-quarter 2024 earnings on Aug 6. The consensus mark for quarterly earnings has declined 2.7% in the past 30 days to $1.07 per share. This indicates a drop of 1.8% from the year-ago quarter’s reported figure. However, IPAR has a trailing four-quarter earnings surprise of 6.5%, on average.
Things To Note
IPAR has been battling elevated selling, general and administrative (SG&A) costs for a while. The company has been significantly investing in advertising and promotion to enhance its brand presence. While these investments are expected to drive growth, they might have dented profits in the current quarter.
Escalated raw material cost inflation, stemming from escalated energy costs and elevated trade spends, might raise concerns for the impending quarter.
That being said, the company continues to benefit from strong brand performance and positive trends in the fragrance market. Its strategy of enhancing its brands through innovation, licensing agreements and new product launches has been proving effective.
Inter Parfums, Inc. Price and EPS Surprise
Inter Parfums, Inc. price-eps-surprise | Inter Parfums, Inc. Quote
A Look at Sales Numbers
Inter Parfums recently came out with record second-quarter 2024 net sales numbers, demonstrating strong momentum in the fragrance market, supported by robust sales from its new licenses, Roberto Cavalli and Lacoste, driving overall sales growth. This producer and distributor of a wide array of prestige fragrance and fragrance-related products reported an 11% year-over-year increase in net sales for the quarter, reaching $342 million. The increase in sales highlights its 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, the company’s Europe-based net sales came in at $226 million, up 14% from year-ago levels. The U.S.-based net sales amounted to $120 million, up 8% from second-quarter 2023 level.
Sales growth in the Europe-based operations was predominantly fueled by Jimmy Choo, which saw a 31% increase in sales. In the second quarter, Montblanc brand sales saw a slight decline. The Montblanc Explorer line and the new Legend Blue (launched in early 2024) are performing well. Demand remained strong for the Coach brand's established lines. Several Inter Parfums’ medium-sized brands had a strong second quarter, with Karl Lagerfeld and Rochas seeing a 13% increase in fragrance sales each.
Growth in its U.S. operations was driven by strong performances from the company’s two largest brands, GUESS and Donna Karan/DKNY. In the quarter, the Ferragamo brand saw minimal growth in sales as the company expanded the Signorina line with Signorina Unica. MCM achieved strong double-digit growth, driven by the successful launch of MCM Crush. The company's latest additions, Lacoste and Roberto Cavalli, met management's expectations.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inter Parfums has a Zacks Rank #3 and an Earnings ESP of -10.28% at present.
Some Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these also have the correct combination to beat on earnings this time:
International Flavors & Fragrances Inc. (IFF - Free Report) currently has an Earnings ESP of +8.84% and a Zacks Rank of 1. The company is likely to register a decline in the top line and a bottom-line increase when it reports second-quarter 2024 numbers. The Zacks Consensus Estimate for International Flavors’ quarterly revenues is pegged at $2.8 billion, indicating a decline of 3.6% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for International Flavors’ quarterly earnings of $1.01 suggests an increase of 17.4% from the year-ago quarter’s levels. IFF has a trailing four-quarter earnings surprise of 6.5%, on average.
Vital Farms (VITL - Free Report) has an Earnings ESP of +1.18% and currently flaunts a Zacks Rank #1. VITL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for VITL’s quarterly revenues is pegged at $143.8 million, indicating growth of 35% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vital Farms’ earnings has moved down by a penny in the past 30 days to 21 cents per share. The consensus estimate suggests 40% growth from the prior-year quarter’s reported figure. VITL has delivered an earnings surprise of 102.1%, on average, in the trailing four quarters.
Coty (COTY - Free Report) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present. The company is expected to register top- and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY’s quarterly earnings has remained unchanged in the past 30 days at 5 cents per share. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, indicating a rise of 1.8% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.