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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
▲(6.01% Upside)
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:Nov 05, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable sales growth in European operations and key brands like Jimmy Choo, complemented by significant challenges such as the decline in U.S. sales, tariff impacts, and gross margin erosion. Despite being recognized as Beauty Company of the Year and having a strong cash position, the financial pressures from tariffs and currency losses weighed heavily on the overall performance.
Q3-2025 Updates
Positive Updates
Record Sales Growth for European Operations
European-based operations sales rose 5% in the first quarter, contributing to a 1% increase in both third quarter and year-to-date sales.
Jimmy Choo Fragrance Surge
Jimmy Choo Fragrance sales surged 16% during the quarter, driven by the I Want Choo fragrance family and Jimmy Choo Man.
Travel Retail Growth
Travel retail sales grew 13% in the third quarter, driven by brands such as Lacoste, Jimmy Choo, Coach, and GUESS.
Recognition as Beauty Company of the Year
Interparfums was named Beauty Company of the Year in the Public Company category by Women's Wear Daily.
Strong Cash Position
Operating cash flow increased by $18 million from the prior year period, reflecting 38% of net income.
Negative Updates
Decline in U.S.-Based Operations Sales
U.S.-based operations sales declined 5% for the third quarter, excluding Dunhill.
Impact of Tariffs
Higher tariffs on U.S. imports led to a $6 million cost in the third quarter, impacting gross margins.
Gross Margin Erosion
Gross margins declined by 40 basis points in the third quarter due to higher tariffs and were expected to erode further by 50 basis points in the fourth quarter.
Net Income Decline for U.S. Operations
Net income for U.S. operations declined 14% to $21 million for the quarter and 20% year-to-date.
Currency and Marketable Securities Losses
Higher losses on foreign currency and marketable securities impacted financial results, with a $4.6 million loss on currency and a $2.5 million loss on securities.
Company Guidance
During Interparfums Inc.'s 2025 Third Quarter Conference Call, the company reported a 1% increase in third-quarter and year-to-date sales, with European-based operations seeing a 5% rise and U.S.-based operations a 5% decline, excluding Dunhill. Jimmy Choo Fragrance sales surged by 16%, driven by the I Want Choo fragrance family, while Coach fragrance sales grew by 6%, bolstered by its established lines and the launch of Coach Gold. However, Montblanc fragrance sales experienced a slight dip due to innovation phasing. Lacoste fragrances are on track to reach $100 million in sales for the year. The company also highlighted the successful launch of new products, including Serpentine from Roberto Cavalli, and the continued strength of digital platforms, with Amazon showing robust performance. Interparfums has implemented a 2% average price increase to counter higher input costs, resulting in some gross margin erosion. Despite this, the company reported a 6% increase in net income for the third quarter, amounting to $66 million or $2.05 per diluted share, and maintained a strong balance sheet with $188 million in cash and equivalents. The company anticipates moderate growth in 2026, driven by new licenses and a robust pipeline of innovation.

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
Positive
Last Price100.93
Price Trends
50DMA
89.63
Positive
100DMA
90.22
Positive
200DMA
105.93
Negative
Market Momentum
MACD
3.26
Positive
RSI
65.74
Neutral
STOCH
63.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPAR, the sentiment is Positive. The current price of 100.93 is above the 20-day moving average (MA) of 97.29, above the 50-day MA of 89.63, and below the 200-day MA of 105.93, indicating a neutral trend. The MACD of 3.26 indicates Positive momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
$3.24B19.7319.95%3.80%3.12%9.01%
68
Neutral
$1.75B17.694.92%3.15%-5.21%1.96%
65
Neutral
$4.54B43.4210.77%13.80%-25.02%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
55
Neutral
$38.12B-210.65-4.34%1.30%-6.36%-554.84%
52
Neutral
$981.52M-27.441.62%3.51%-1.34%-73.59%
51
Neutral
$2.23B-4.06-14.50%-5.68%-358.36%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IPAR
Inter Parfums
100.93
-30.01
-22.92%
EL
The Estée Lauder Companies
105.39
34.45
48.56%
SPB
Spectrum Brands Holdings
75.56
-1.33
-1.73%
COTY
Coty
2.53
-3.05
-54.66%
EPC
Edgewell Personal Care
21.01
-8.02
-27.63%
ELF
e.l.f. Beauty
76.82
4.55
6.30%

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