IPAR - Inter Parfums posts stronger than expected Q1 profits

2023-05-08 16:22:27 ET

Inter Parfums ( NASDAQ: IPAR ) notched a bottom line beat for the first quarter even as sales narrowly missed consensus estimates.

The New York- based fragrance company posted $1.68 in earnings per share on $311.7M  in net sales. Analysts had anticipated $312.07M and $1.43 for the top and bottom lines, respectively.

“The sales gains achieved in the first quarter encompassed all regions. Our three largest markets, North America, Western Europe and Asia/Pacific grew sales by 36%, 21% and 8%, respectively,” CEO Jean Madar said. “Our sales in Central and South America, Eastern Europe, and the Middle East were also robust, up 43%, 25%, and 5%, respectively. Additionally, our travel retail business has picked up in line with the resumption of international travel. We have also begun to see light at the end of the tunnel with respect to the progressive reopening of China and look forward to meaningful sales growth as the year unfolds.”

CFO Michel Atwood added that a 180 basis point expansion in gross margin and a 460 basis point improvement in operating margins indicate the company’s prudent spending and focus on efficiency.  He added that the company remains “well on track” to reach net sales of $1.25B and $4.25 in earnings per share for the full year, in-line with consensus expectations.

“The impact of China on our sales is only marginally included in our guidance. We will be in a better position to revisit this subject as that business scales up and we have better visibility,” Atwood concluded. “Our current 2023 guidance assumes that the average dollar/euro average exchange rate remains at current levels and there is no significant resurgence of the COVID-19 pandemic.”

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