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Inter Parfums (IPAR)
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Inter Parfums (IPAR) AI Stock Analysis

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IPAR

Inter Parfums

(NASDAQ:IPAR)

Rating:65Neutral
Price Target:
$121.00
▲(4.29% Upside)
Inter Parfums' overall score is driven by strong financial performance and positive earnings call highlights, such as growth in European operations and new product launches. However, bearish technical indicators and challenges in U.S. sales and operating income weigh on the score. The valuation is reasonable but not particularly attractive, contributing to a moderate overall score.
Positive Factors
Consumer Demand
Consumer demand for fragrance remains strong, with more consumers using fragrance and trading up to more premium offerings that IPAR offers.
Growth Strategy
IPAR continues to execute on its simple but effective strategy that focuses on faster-growing prestige fragrances, finding and adding licensed partnerships for brands with meaningful growth opportunity, and utilizing an asset-light model to allow for operational flexibility and agility.
Product Innovation
The launch of IPAR's own luxury brand, Solferino, with a diverse collection of fragrances indicates innovation and expansion potential.
Negative Factors
Market Uncertainty
Management highlighted uncertainty around tariffs and the macro environment, taking a cautious approach by reiterating guidance instead of raising it.
Outlook and Guidance
IPAR is now poised to report lower second quarter results and reduce its full year outlook.
Sales Performance
The Company experienced a sequential decline in sales in the second quarter even though the Euro was materially higher compared to the first quarter of 2025.

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 primarily through the sale of its fragrance products, which are distributed through various channels including department stores, specialty retailers, and e-commerce platforms. The company operates a licensing model, partnering with prestigious fashion and lifestyle brands to create exclusive fragrance lines, which allows it to leverage the brand equity of its partners while minimizing the costs associated with brand development. Key revenue streams include royalties from licensed brands, direct sales of proprietary fragrances, and international sales, which contribute significantly to its overall earnings. The company's strategic partnerships with renowned designers and brands, alongside its ability to innovate and respond to market trends, play a critical role in driving its profitability.

Inter Parfums Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive developments, such as growth in European-based operations, strong performance in key markets, new product launches, and e-commerce expansion. However, these are balanced by challenges including sales declines in U.S.-based operations, difficulties in Asia Pacific and the Middle East, foreign exchange losses, and decreased operating income. Retailer caution and inventory management issues also present concerns.
Q2-2025 Updates
Positive Updates
European-Based Operations Growth
European-based operations reported net sales growth of 6% in the second quarter and 7% in the first half of the year, with robust performance in the U.S. led by Jimmy Choo fragrances.
Solid Growth in Key Markets
North America sales rose 7%, and Western Europe sales increased by 3% during the first half, with Central and South America sales up 7%, driven by Lacoste and Coach fragrances.
New Fragrance Launches and License Agreements
Interparfums plans to launch new products for brands such as Jimmy Choo, Montblanc, Karl Lagerfeld, and Lacoste. Additionally, Interparfums was selected as the exclusive fragrance licensee for Longchamp.
E-commerce Expansion
Strong momentum in e-commerce channels, especially on Amazon, with platforms like TikTok Shop and Divabox gaining traction.
Tariff Agreement and Sourcing Strategy
Agreement to keep tariffs on goods from Europe at 15% and eliminate tariffs on U.S. exports to Europe. Transitioning to alternative sourcing options outside of China to minimize impacts.
Gross Margin Improvement
Gross margin expanded by 170 basis points to 66.2% in the second quarter, driven by favorable brand and channel mix.
Negative Updates
U.S.-Based Operations Sales Decline
U.S.-based operations reported a 20% decline in net sales for the second quarter, with an organic decline of 14%.
Asia Pacific and Middle East Sales Challenges
Asia Pacific fragrance sales were down 12% in the first half, with significant challenges in South Korea. Middle East and Africa sales declined 19%, reflecting the exit of the Dunhill license.
Foreign Exchange Losses
A loss of $2.4 million due to foreign exchange impacts in the first half of 2025 compared to a gain in the previous year.
Operating Income Decrease
Consolidated operating income decreased by 9% in the second quarter, with a 120 basis point decline in operating margin.
Retailer Prudence and Inventory Management
Retailers and distributors are being more prudent with inventory levels, causing a disconnect between sell-in and sell-out.
Company Guidance
During the second quarter of 2025, Interparfums, Inc. reported varying regional performance, with European-based operations experiencing a 6% increase in net sales, whereas U.S.-based operations saw a 20% decline, including an 8% impact from Dunhill inventory sell-out. On an organic basis, U.S. operations sales fell by 14% in the second quarter and by 6% during the first half of the year. Overall, the company maintained a 3% growth in organic net sales over the first six months, despite a 12% decline in Asia Pacific sales and a 19% drop in the Middle East and Africa. Gross margin improved by 170 basis points to 66.2% in the second quarter, while SG&A expenses rose to 48.5% of net sales. Operating income decreased by 9% to $59 million, resulting in an operating margin of 17.7%. The company reaffirmed its 2025 guidance, anticipating net sales of $1.51 billion and earnings per diluted share of $5.35.

Inter Parfums Financial Statement Overview

Summary
Inter Parfums exhibits strong profitability and financial stability, with effective management of debt and equity. While profitability metrics are impressive, the decline in revenue growth and free cash flow growth pose potential risks. Overall, the company is well-positioned but should address growth challenges to sustain its financial performance.
Income Statement
75
Positive
Inter Parfums demonstrates strong profitability with a consistent gross profit margin around 64% and an improving net profit margin, reaching 16% in TTM. However, the recent revenue growth rate shows a decline, indicating potential challenges in maintaining sales momentum.
Balance Sheet
80
Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.087 in TTM, reflecting prudent financial management. Return on equity is robust at 31%, indicating effective use of shareholder funds. The equity ratio is stable, supporting financial stability.
Cash Flow
70
Positive
Operating cash flow remains strong, but free cash flow growth has declined by 13% in TTM, which could impact future investments. The operating cash flow to net income ratio is healthy at 0.76, suggesting efficient cash generation relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.46B1.45B1.32B1.09B879.52M539.01M
Gross Profit941.26M927.34M839.08M694.42M556.90M330.73M
EBITDA291.10M300.57M280.98M223.89M171.65M79.15M
Net Income230.03M164.36M152.65M120.94M87.41M38.22M
Balance Sheet
Total Assets1.56B1.41B1.37B1.31B1.15B890.14M
Cash, Cash Equivalents and Short-Term Investments205.35M234.74M182.77M255.55M319.63M296.31M
Total Debt279.53M192.19M192.37M209.67M184.05M51.19M
Total Liabilities505.00M468.62M482.42M520.40M407.03M187.69M
Stockholders Equity839.36M744.87M699.39M616.78M571.92M535.84M
Cash Flow
Free Cash Flow183.17M182.90M52.41M-17.47M-23.23M52.73M
Operating Cash Flow218.61M187.64M105.77M115.15M119.59M64.99M
Investing Cash Flow-71.10M-44.83M7.26M-132.76M-187.87M-22.33M
Financing Cash Flow-41.37M-100.77M-133.21M-45.57M78.19M-18.64M

Inter Parfums Technical Analysis

Technical Analysis Sentiment
Negative
Last Price116.02
Price Trends
50DMA
125.89
Negative
100DMA
122.76
Negative
200DMA
126.68
Negative
Market Momentum
MACD
-3.44
Negative
RSI
40.18
Neutral
STOCH
51.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPAR, the sentiment is Negative. The current price of 116.02 is below the 20-day moving average (MA) of 116.33, below the 50-day MA of 125.89, and below the 200-day MA of 126.68, indicating a bearish trend. The MACD of -3.44 indicates Negative momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 51.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$6.53B68.2412.97%18.61%-21.36%
65
Neutral
$3.66B23.0020.68%2.72%7.04%13.52%
63
Neutral
$1.34B21.292.98%3.33%-2.78%-17.38%
63
Neutral
$20.46B14.47-3.60%3.13%2.63%-6.18%
58
Neutral
$1.08B17.364.12%2.59%-2.92%-43.06%
50
Neutral
$32.33B147.29-24.69%1.90%-8.14%-389.12%
46
Neutral
$3.22B40.12-9.98%-3.68%-631.67%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IPAR
Inter Parfums
114.03
-9.02
-7.33%
EL
The Estée Lauder Companies
92.61
4.01
4.53%
SPB
Spectrum Brands Holdings
56.52
-34.16
-37.67%
COTY
Coty
4.20
-5.05
-54.59%
EPC
Edgewell Personal Care
23.15
-16.27
-41.27%
ELF
e.l.f. Beauty
124.90
-25.17
-16.77%

Inter Parfums Corporate Events

Business Operations and StrategyFinancial Disclosures
Inter Parfums Reaffirms 2025 Guidance Amid Mixed Q2 Results
Neutral
Aug 5, 2025

Interparfums, Inc. reported a mixed performance for the second quarter and first half of 2025, with net sales slightly below expectations due to trade destocking, but gross margins improved due to favorable brand mix. The company reaffirmed its 2025 guidance, anticipating stronger results in the second half driven by pricing strategies and foreign exchange tailwinds, despite challenges such as tariffs and moderating global demand.

Business Operations and StrategyFinancial Disclosures
Inter Parfums Reports Q2 2025 Sales Decline
Neutral
Jul 23, 2025

Interparfums, Inc. reported a slight decline in net sales for the second quarter of 2025, with a 2% decrease compared to the previous year, attributed to order timing shifts and macroeconomic headwinds. Despite these challenges, the company remains optimistic about its market position, particularly in the U.S., and anticipates growth in the latter half of the year due to new product launches and strategic pricing actions. European operations saw a 6% sales increase, driven by strong performances from Lacoste and Coach, while U.S. operations faced a 20% decline, impacted by the discontinuation of the Dunhill license. The company expects minimal future impact from this change and plans to leverage its robust brand portfolio and market strategies to enhance performance.

Product-Related AnnouncementsBusiness Operations and Strategy
Inter Parfums Secures Exclusive Longchamp Fragrance License
Positive
Jul 22, 2025

On July 22, 2025, Interparfums, Inc. announced that its subsidiary, Interparfums SA, has secured an exclusive fragrance license with Longchamp, a renowned Parisian brand, effective until December 31, 2036. This agreement allows Interparfums SA to create and distribute Longchamp fragrances, with the first launch anticipated in 2027, enhancing Interparfums’ market position and expanding its product offerings in collaboration with a brand known for French excellence.

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: Aug 19, 2025