Inter Parfums(IPAR) - 2024 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2024 reached $342 million, an 11% increase from $309 million in Q2 2023; for the first half of 2024, net sales were $666 million, up 7% from $621 million[2] - Operating income for Q2 2024 was $65 million, an 18% increase from $55 million in Q2 2023; however, operating income for the first half decreased by 9% to $133 million from $145 million[2] - Net income attributable to Inter Parfums was $37 million in Q2 2024, a 5% increase from $35 million in Q2 2023; for the first half, net income was $78 million, down 13% from $89 million[2] - Net sales for the three months ended June 30, 2024, increased to $342,229,000, up from $309,244,000 for the same period in 2023, representing an increase of 10.3%[15] - Net income attributable to Inter Parfums, Inc. for the three months ended June 30, 2024, was $36,823,000, an increase from $34,952,000 in the same period of 2023, marking a rise of 5.3%[15] - Basic earnings per share for the three months ended June 30, 2024, was $1.15, compared to $1.09 for the same period in 2023, indicating a growth of 5.5%[15] Gross Margin and Expenses - Gross margin expanded by 360 basis points to 64.5% in Q2 2024, and by 50 basis points to 63.5% for the first half of 2024[6] - SG&A expenses as a percentage of net sales increased to 45.6% in Q2 2024 from 43.1% in Q2 2023, primarily due to higher promotional and advertising expenditures[6] Future Outlook - The company anticipates 2024 net sales of $1.45 billion, resulting in earnings per diluted share of $5.15[8] - The company is planning new fragrance launches for 2025, including new scents for Coach, GUESS, and extensions of existing brands[5] - A new 9-year license agreement with Van Cleef & Arpels will begin on January 1, 2025, enhancing the distribution of their fragrances[5] Asset and Liability Management - Total current assets as of June 30, 2024, were $857,388,000, slightly up from $839,026,000 as of December 31, 2023, showing an increase of 2.5%[14] - Accounts receivable, net, increased to $299,375,000 as of June 30, 2024, from $247,240,000 as of December 31, 2023, representing a significant increase of 20.9%[14] - Current liabilities rose to $332,436,000 as of June 30, 2024, compared to $324,745,000 as of December 31, 2023, reflecting an increase of 2.1%[14] - Long-term debt, less current portion, decreased to $108,482,000 as of June 30, 2024, from $127,897,000 as of December 31, 2023, indicating a reduction of 15.2%[14] Dividend Information - The company declared dividends of $0.75 per share for the three months ended June 30, 2024, up from $0.625 per share in the same period of 2023, representing a 20% increase[15]