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Inter Parfums (IPAR)
NASDAQ:IPAR

Inter Parfums (IPAR) AI Stock Analysis

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IPAR

Inter Parfums

(NASDAQ:IPAR)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
$107.00
▲(6.17% Upside)
Action:ReiteratedDate:01/30/26
The score is driven primarily by strong financial performance (high margins and ROE with manageable leverage), supported by constructive technical momentum. Offsetting factors include mixed earnings-call takeaways (tariff-driven margin erosion and weaker U.S. trends) and only moderately attractive valuation, while recent long-term licensing wins add incremental support.
Positive Factors
High margins and strong revenue growth
Sustained high gross and net margins alongside strong TTM revenue growth indicate durable pricing power and brand premium in the prestige fragrance segment. This margin profile funds marketing, R&D and licensing investments, supporting long-term cash generation and competitive positioning.
Solid balance sheet and high ROE
Low leverage and a high ROE provide financial flexibility to invest in brand development, extend licenses, or weather macro shocks. A strong equity base reduces refinancing risk and supports long-term strategic moves like product launches or selective M&A without overburdening cash flow.
Long-term GUESS license extension
A 15-year renewal secures a major scalable revenue stream and extends planning visibility for marketing and product investment. Multi-decade exclusivity lowers renewal risk, supports shelf presence and reinforces long-term brand equity and predictable licensing revenue for investors and partners.
Negative Factors
Declining free cash flow
A 10% TTM drop in free cash flow weakens the company's ability to self-fund launches, dividend growth, or opportunistic buybacks. Even with solid operating cash, declining FCF can constrain reinvestment into brands and reduce buffer for tariff or FX shocks over the medium term.
Tariff-driven margin erosion
Sustained import tariffs that materially compress gross margins create structural cost pressure. If tariffs persist, management must raise prices (risking volume) or absorb costs, both of which can reduce long-term profitability and allocation to brand investment versus competitors without similar exposure.
Weakness in U.S. operations
A meaningful and recurring U.S. sales decline erodes geographic diversification and puts pressure on consolidated growth. Persistent underperformance in the world’s largest fragrance market can limit scale benefits, reduce leverage on fixed costs, and force greater reliance on European or travel-retail channels.

Inter Parfums (IPAR) vs. SPDR S&P 500 ETF (SPY)

Inter Parfums Business Overview & Revenue Model

Company DescriptionInter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. The company operates in two segments, European Based Operations and United States Based Operations. It offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lily Aldridge, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, babe, Dunhill, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, French Connection, and Ungaro brand names, as well as under the Intimate and Aziza names. It sells its products to department stores, specialty stores, duty free shops, beauty retailers, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.
How the Company Makes MoneyInter Parfums generates revenue through the sale of its fragrance products, which are marketed under both proprietary brands and licensed brands. The company earns significant income from long-term licensing agreements with high-profile fashion and designer brands, allowing it to produce and sell fragrances that carry those brands' identities. Additionally, Inter Parfums benefits from direct sales to retailers and distributors, as well as e-commerce channels. The company's revenue model is further bolstered by its ability to introduce new products and seasonal collections, thereby maintaining consumer interest and driving repeat purchases. Strategic partnerships with key players in the retail and distribution sectors also enhance its market reach and profitability.

Inter Parfums Earnings Call Summary

Earnings Call Date:Feb 24, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call highlights a strong operational year with record revenue, record net income, robust brand-level wins (notably Cavalli, Lacoste, MCM, Coach and Jimmy Choo), improved inventory and cash generation, successful portfolio expansion and clear DTC/retail traction for new initiatives like Solferino. Offsetting these positives are margin pressures from tariffs and FX volatility, higher A&P/SG&A investment, a cautious outlook for 2026 (flat sales and lower EPS guidance versus 2025) and some regional softness (China and parts of Europe). On balance, the company demonstrates solid execution and multiple growth catalysts while acknowledging near-term headwinds that management is actively mitigating.
Q4-2025 Updates
Positive Updates
Record Full-Year and Best-Ever Fourth Quarter Sales
Consolidated 2025 sales reached a record $1.49 billion; fourth quarter sales were a company-best $386 million. Reported Q4 growth was +7% and organic Q4 growth was +3%.
Record Net Income and EPS
Full-year net income reached a record $168 million and diluted EPS was $5.24, a +2% increase versus 2024. Q4 net income was $28 million, or $0.88 per diluted share, a +16% increase year-over-year.
Strong Brand Performance (Multiple Brands)
Notable brand growth: Cavalli +33% (Q4 and full year), MCM +40% (Q4) and +17% (full year), Lacoste +23% (Q4) and +28% (full year, reaching $108 million), Coach +5% (Q4) and +15% (full year), Jimmy Choo +6% (full year), Montblanc +22% (Q4). GUESS and Donna Karan returned to Q4 growth of +7% and +8% respectively.
Successful New Product Launches & Portfolio Expansion
Launched several high-profile rollouts including proprietary ultra-luxury Solferino (10 scents), new extensions for Cavalli, MCM, Coach and others. New/existing license activity includes Longchamp, Off-White, Goutal, David Beckham and Nautica; GUESS license extended 15 years through 2048.
Solferino Direct-to-Consumer Momentum
Solferino reached 40 doors worldwide by year-end 2025; planned expansion of +50 doors in H1 2026 with a long-term target of up to 500 doors. Entered U.S. via Bloomingdale's (online + 7 stores).
Travel Retail & E-commerce Strength
Travel retail sales grew +6% in 2025 and accounted for ~7% of net sales. E‑commerce channels like Amazon and early TikTok Shop activity showing strong engagement and growth potential.
Inventory and Working Capital Improvements
Year-end inventory down 6% versus 2024; inventory days decreased to 244 from 259 (lowest since 2022). Full-year operating cash flow rose to $215 million (up $27 million), representing 103% of net income.
Tariff Mitigation and Cost Savings Examples
Operational changes (e.g., moving production for three GUESS lines to Italy and diverting components shipments from China to Europe) yielded tariff savings of $3.5 million and demonstrated ability to capture savings through supply-chain shifts.
Balance Sheet Strength & Capital Returns
Cash, cash equivalents and short-term investments totaled $295 million; the company repurchased $14 million of shares in 2025 and maintained an annual dividend of $3.20 per share.
Geographic and Channel Positives
Solid Q4 performance across both U.S. and European operations (Europe Q4 sales +9% with 4% organic and 4% FX benefit). Early 2026 sell-through and reorders noted as healthy in many regions; Latin America and Australia performing well.
Negative Updates
Tariff-Related Cost Headwind
Tariffs increased costs by approximately $12.8 million in 2025 (about 0.9% of sales) and are expected to remain a significant headwind in 2026.
Gross Margin Pressure
Consolidated gross margin contracted ~20 basis points to 63.6% for 2025. European gross margin fell to 66.1% from 67.0 (≈90 bps erosion), with tariffs cited as a primary driver ($8.6 million impact).
Operating Margin and Operating Income Declines
Q4 operating income fell to $28 million (7.1% operating margin) from $36 million (10.0% prior-year margin). Full-year operating income declined 2% to $270 million with operating margin down to 18.2% (≈80 bps decline).
Foreign Exchange Volatility
Stronger euro aided top-line but increased P&L costs and produced FX losses (foreign currency loss of $3.7 million vs. a gain of $0.5 million in 2024); FX also contributed to higher reported accounts receivable and costs in euro-based production.
U.S. Segment Full-Year Sales Decline (Ex-Dunhill)
Excluding the phaseout of Dunhill (completed August 2024), U.S. operations full-year sales declined approximately 3% in 2025.
Increased SG&A and A&P Investment
SG&A rose as a percentage of sales (full year 45.5% vs 44.7% prior year); A&P spending increased (A&P +10% in Q4 and +5% for full year) contributing to margin pressure.
Cautious 2026 Guidance
Company maintained conservative guidance: expected sales ~ $1.48 billion and diluted EPS of $4.85 (a decline from 2025). Guidance reflects anticipated tariff impact, one‑time gains in 2025, and investments for new brands.
China and Parts of Asia Slower
China remains slow and Asia showed mixed softness for the company in 2025; management highlighted slower starts in some northern European markets as well.
Slight Uptick in Promotional Activity
Noted a small increase in holiday promotions/discounting (friends & family, etc.) in Q4 versus historical norms, though described as not materially significant.
Company Guidance
Interparfums reiterated the November outlook, guiding to approximately $1.48 billion of sales and diluted EPS of $4.85 for 2026 (versus record 2025 sales of $1.49B, Q4 sales of $386M, and 2025 diluted EPS of $5.24), taking a conservative stance given a 2025 one‑time gain, ongoing tariff headwinds and investments behind new brands; management expects tariffs (which added about $12.8M or ~0.9% of sales in 2025) to remain a headwind but believes mitigation actions plus the ~2% average price increases taken in H2 2025 should enable gross margins to be roughly flat in 2026, and will revisit guidance as visibility improves while anticipating a stronger growth rebound in 2027 driven by major innovation and franchise launches.

Inter Parfums Financial Statement Overview

Summary
Strong profitability and growth profile (TTM revenue +33.9%, gross margin 64.5%, net margin 15.8%) and solid balance sheet leverage (debt-to-equity 0.33, equity ratio 55.7%, ROE 29.2%). Offsetting this, EBIT/EBITDA margins have slipped year over year and free cash flow declined 10% TTM, which is a risk if it persists.
Income Statement
85
Very Positive
Inter Parfums has demonstrated strong revenue growth with a 33.9% increase in TTM, supported by solid gross and net profit margins of 64.5% and 15.8%, respectively. The EBIT and EBITDA margins are healthy at 18.7% and 19.9%, indicating efficient operations. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, which could be a point of concern if the trend continues.
Balance Sheet
78
Positive
The company maintains a moderate debt-to-equity ratio of 0.33, reflecting a balanced approach to leverage. Return on equity is robust at 29.2%, showcasing effective use of shareholders' equity to generate profits. The equity ratio stands at 55.7%, indicating a strong equity base. However, the increase in total debt over the past year warrants monitoring.
Cash Flow
70
Positive
Operating cash flow remains strong, but free cash flow has decreased by 10% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.66, suggesting good cash conversion, while the free cash flow to net income ratio of 0.84 indicates efficient cash management. The decline in free cash flow growth is a potential risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.46B1.45B1.32B1.09B879.52M539.01M
Gross Profit942.92M927.34M839.08M694.42M556.90M330.73M
EBITDA310.44M304.57M278.18M220.36M166.54M80.39M
Net Income164.52M164.36M152.65M120.94M87.41M38.22M
Balance Sheet
Total Assets1.56B1.41B1.37B1.31B1.15B890.14M
Cash, Cash Equivalents and Short-Term Investments187.86M234.74M182.77M255.55M319.63M296.31M
Total Debt229.87M192.19M192.37M209.67M184.05M51.19M
Total Liabilities460.15M468.62M477.16M520.40M407.03M187.69M
Stockholders Equity870.89M744.87M699.39M616.78M571.92M535.84M
Cash Flow
Free Cash Flow143.33M182.90M52.41M-17.47M-23.23M52.73M
Operating Cash Flow206.33M187.64M105.77M115.15M119.59M64.99M
Investing Cash Flow-58.65M-44.83M7.26M-132.76M-187.87M-22.33M
Financing Cash Flow-119.28M-100.77M-133.21M-45.57M78.19M-18.64M

Inter Parfums Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price100.78
Price Trends
50DMA
93.69
Positive
100DMA
90.64
Positive
200DMA
105.40
Negative
Market Momentum
MACD
2.36
Positive
RSI
54.65
Neutral
STOCH
70.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPAR, the sentiment is Neutral. The current price of 100.78 is below the 20-day moving average (MA) of 100.95, above the 50-day MA of 93.69, and below the 200-day MA of 105.40, indicating a neutral trend. The MACD of 2.36 indicates Positive momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IPAR.

Inter Parfums Risk Analysis

Inter Parfums disclosed 11 risk factors in its most recent earnings report. Inter Parfums reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Inter Parfums Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.23B19.2320.72%3.80%3.12%9.01%
68
Neutral
$1.82B18.355.34%3.15%-5.21%1.96%
64
Neutral
$5.44B52.0310.77%13.80%-25.02%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
55
Neutral
$39.60B-4.34%1.30%-6.36%-554.84%
52
Neutral
$1.06B-26.841.62%3.51%-1.34%-73.59%
51
Neutral
$2.21B-4.03-14.50%-5.68%-358.36%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IPAR
Inter Parfums
99.18
-31.99
-24.39%
EL
The Estée Lauder Companies
100.19
31.11
45.04%
SPB
Spectrum Brands Holdings
78.70
5.99
8.23%
COTY
Coty
2.47
-3.00
-54.84%
EPC
Edgewell Personal Care
22.23
-8.00
-26.47%
ELF
e.l.f. Beauty
81.64
17.83
27.94%

Inter Parfums Corporate Events

Business Operations and StrategyProduct-Related Announcements
Inter Parfums Secures Long-Term David Beckham Fragrance License
Positive
Jan 29, 2026

On January 28, 2026, Interparfums, Inc. announced that its subsidiary Interparfums Italia, Srl, has signed an exclusive 20-year worldwide license agreement with David Beckham to create, develop, produce and distribute fragrances under the David Beckham brand, with Interparfums assuming full global responsibility for the line from April 1, 2028. The long-term deal, which deepens Interparfums’ partnership with Authentic Brands Group, positions the company to consolidate and expand Beckham’s existing fragrance portfolio, launch a new signature scent by the end of 2029, and materially scale the brand’s global presence, underscoring Interparfums’ strategy of leveraging high-profile lifestyle names to reinforce its standing in the prestige fragrance market and drive future growth.

The most recent analyst rating on (IPAR) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Inter Parfums stock, see the IPAR Stock Forecast page.

Business Operations and Strategy
Inter Parfums Secures Long-Term Global Nautica Fragrance License
Positive
Jan 29, 2026

On January 28, 2026, Interparfums, Inc. announced that its U.S. subsidiary has signed an exclusive, 20-year worldwide license agreement with global lifestyle brand Nautica to create, develop, produce and distribute Nautica-branded fragrances, with Interparfums assuming full global responsibility for the Nautica fragrance portfolio effective January 1, 2030. Management indicated that the partnership, which deepens its relationship with Nautica’s owner Authentic Brands Group, is expected to significantly expand Nautica’s fragrance offering and strengthen Interparfums’ position in the licensed fragrance market by adding another well-known lifestyle label to its portfolio.

The most recent analyst rating on (IPAR) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Inter Parfums stock, see the IPAR Stock Forecast page.

Business Operations and Strategy
Inter Parfums Extends Long-Term Global GUESS Fragrance License
Positive
Jan 26, 2026

On January 26, 2026, Interparfums, Inc. announced a 15-year extension of its exclusive worldwide fragrance license with Guess?, Inc., lengthening the partnership through December 31, 2048. The renewal secures Interparfums’ role in creating, developing and distributing GUESS fragrances globally and builds on a collaboration that began in 2018 and has produced several successful lines, including Bella Vita, Uomo, Seductive and the Iconic women’s and men’s scents. Executives from Interparfums, Guess and Authentic Brands Group highlighted the strong sales growth, expanded market share and brand prominence achieved to date, underscoring the strategic importance of GUESS as one of Interparfums’ largest and most scalable fragrance brands and reinforcing long-term visibility for stakeholders in both companies’ fragrance and lifestyle businesses.

The most recent analyst rating on (IPAR) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Inter Parfums stock, see the IPAR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Inter Parfums Announces Record Q4 and 2025 Sales
Positive
Jan 21, 2026

Interparfums, Inc. reported that on January 21, 2026 it achieved record net sales for the fourth quarter and full year 2025, with annual revenue rising 2% to $1.49 billion and fourth-quarter sales up 7% to $386 million, aided by favorable foreign exchange and strong performances from key European-based brands including Coach, Lacoste, Montblanc and Jimmy Choo. European operations grew 9% in the quarter and 7% for the year, supported by the successful launch trajectory of the new proprietary Solférino brand and an extension of the Boucheron license for existing fragrance lines to the end of 2027, while U.S. operations delivered a 4% sales increase in the fourth quarter—driven by GUESS, Donna Karan/DKNY, Roberto Cavalli and MCM—even as full-year U.S. sales declined excluding the discontinued Dunhill license, underscoring both resilience in core franchises and ongoing challenges from macroeconomic headwinds and trade destocking ahead of the company’s detailed results release scheduled for late February 2026.

The most recent analyst rating on (IPAR) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on Inter Parfums stock, see the IPAR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Inter Parfums Projects Modest Sales Growth for 2026
Neutral
Nov 18, 2025

Interparfums, Inc. announced its initial guidance for 2026, projecting a modest 1% increase in net sales to $1.48 billion, despite a 5% decline in diluted EPS to $4.85, attributed to one-time tax gains in 2025 and investments in new brands. The company plans to focus on consolidating operations and laying the groundwork for long-term growth, with significant brand expansions and new product launches scheduled for 2027. Despite macroeconomic challenges and inventory destocking expected to persist into 2026, Interparfums anticipates foreign exchange gains and strategic brand extensions to offset the impact of the expiration of its Boucheron license. The company is set to introduce new offerings across its European and U.S. operations, including extensions for Coach, Lacoste, Jimmy Choo, Montblanc, and others, while expanding its owned brand Solférino and redesigning Goutal fragrances.

The most recent analyst rating on (IPAR) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on Inter Parfums stock, see the IPAR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Inter Parfums Reports Modest Q3 2025 Sales Increase
Neutral
Nov 5, 2025

Interparfums, Inc. reported its third-quarter results for 2025, showing a modest increase in net sales and operating income compared to the previous year, despite challenges such as retailer destocking and tariff-related disruptions. The company remains optimistic about its innovation pipeline and marketing strategies to drive sales through the holiday season and into 2026. Additionally, Interparfums plans to streamline its corporate structure by merging its wholly owned French subsidiary into its French operating subsidiary by December 2025, which is not expected to materially impact shareholders.

The most recent analyst rating on (IPAR) stock is a Buy with a $125.00 price target. To see the full list of analyst forecasts on Inter Parfums stock, see the IPAR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 30, 2026