$IPAR Stock Rips Higher On Beat, Price Target Hike

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IPAR stock exploded more than 7% higher on October 26, 2021, after the company reported beats.

IPAR Stock Up On Revenue Beat

Inter Parfums reported Q3 revenue of $262.7M versus the consensus estimate of $196.31M. Net sales rose to a record $262.7 million, a 64% increase from the third quarter of 2020 and 37% ahead of the third quarter of 2019. Inter Parfums raised its FY21 EPS forecast to $2.35 from $1.95; the consensus was $1.95. The company raised its FY21 revenue forecast to $810M from $750M; the agreement was $771.7M.

Jean Madar, Chairman & CEO of Inter Parfums, stated, “Our third quarter, historically our strongest, set a record. As compared to 2019’s third quarter, our largest brands outperformed our best expectations. Montblanc, Jimmy Choo, Coach, GUESS, and Lanvin sales were ahead 26%, 40%, 98%, 27%, and 37%, respectively. The increases came from established fragrance pillars, brand extensions, and the rollout of newer scents, including I Want Choo for Jimmy Choo and Bella Vita for GUESS. Also contributing to the top line growth were sales by two of our newer brands, Kate Spade and MCM, debuting new fragrances this year. We are similarly gratified by the meaningful upturn in sales by most of our mid-sized brands compared to the third quarters of the preceding two years. With the recent addition of Ferragamo fragrances and the forthcoming addition of Donna Karan and DKNY fragrances next summer, we look forward to accelerating our sales growth with expectations of attaining $1 billion in net sales within two to three years. Further enriching our portfolio with other compatible brands remains a high priority, especially in Italy, where our newly established business has a broad bench of operational experience in all relevant functions – encompassing product development, sourcing, manufacturing, inventory management, packaging, marketing, and distribution.”

Inter Parfums, Inc. engages in manufacturing, marketing, and distributing a wide array of fragrances and related products. The company is headquartered in New York City, New York, and currently employs 396 full-time employees. The company operates through two segments: European-based operations and United States-based operations. The European Operations segment produces and distributes its fragrance products under license agreements with brand owners. The company has a portfolio of prestige brands, including Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade New York, Lanvin, Moncler, Montblanc, Paul Smith, Repetto, Rochas, S.T. Dupont, and Van Cleef & Arpels. The United States operations segment market fragrance and fragrance-related products. Its prestige brand fragrance products are also marketed through its United States operations. The United States-based operations segment sells fragrance products under various names, including Abercrombie & Fitch, Anna Sui, bebe, Dunhill, French Connection, Graff, GUESS, Hollister, MCM, and Oscar de la Renta brands.

Inter Parfums price target raised to $100 from $90 at DA Davidson

DA Davidson analyst Linda Bolton Weiser raised the firm’s price target on Inter Parfums to $100 from $90 and kept a Buy rating on the shares. The analyst cites the company’s Q3 sales beat and believes that Inter Parfums is managing well through supply chain challenges. Weiser adds that the company’s management sounded bullish about the future, giving a 2-3 year sales target of $1B for the first time.

G-III Apparel Group and Inter Parfums, Inc. Sign Global Fragrance License for Donna Karan and DKNY

On September 30, 2021, G-III Apparel Group, Ltd. (NASDAQ GS: GIII) and Inter Parfums, Inc. (NASDAQ GS: IPAR) announced that they entered into a long-term global licensing agreement for the creation, development, and distribution of fragrances and fragrance-related products under the iconic Donna Karan and DKNY brands. Inter Parfums, Inc. will take on the exclusive license, effective July 1, 2022.

Jean Madar, Chairman & CEO of Inter Parfums, Inc., stated, “The Donna Karan and DKNY brands, which draw from the energy and attitude of New York City, are powerhouses in fashion and fragrance. These global lifestyle brands will make excellent additions to our portfolio. With this agreement, we are gaining several well-established and valuable fragrance franchises, most notably Donna Karan Cashmere Mist and DKNY Be Delicious, as well as a significant loyal consumer base around the world. Upon joining our portfolio, these brands will rank among our largest. We are also planning to launch new fragrances under these brands in 2023.”

Morris Goldfarb, Chairman, and CEO of G-III Apparel Group, Ltd., parent of the Donna Karan and DKNY brands, stated, “The fragrance category enables our fashion brands to connect more broadly with a global consumer. Inter Parfums ability to develop fragrances for an impressive portfolio of brands, combined with their extensive worldwide distribution capabilities, is a testament to their leadership position in the fragrance market. G-III is very pleased to partner with Inter Parfums in the next chapter of developing a fragrance for our Donna Karan and DKNY brands.”

IPAR Stock Technical Analysis

Although IPAR has an excellent technical rating, it does not offer a high-quality setup at the moment. Prices have been extended to the upside lately. For a superb entry, it is better to wait for a consolidation. Click here to sign up for email alerts on IPAR stock and when it presents a quality setup.

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