Inter Parfums' Q4 Earnings on Deck: Key Factors You Should Understand

Core Viewpoint - Inter Parfums, Inc. (IPAR) is expected to show bottom-line growth in its upcoming fourth-quarter 2024 earnings report, with an estimated earnings per share (EPS) of 80 cents, up from 32 cents in the same quarter last year [1][2]. Financial Performance - The consensus estimate for 2024 earnings is $5.14 per share, reflecting an 8.2% increase from the previous year's figure [2]. - For the fourth quarter of 2024, Inter Parfums reported a 10% increase in net sales, totaling$ 362 million, while full-year net sales also rose by 10% to $1.452 billion [5]. - U.S.-based net sales reached$ 149 million in the fourth quarter, marking a robust 16% year-over-year increase, and full-year sales rose 12% to $511 million [8]. Brand Performance - The company's growth is driven by strong demand for its key brands, with GUESS being the top performer in the U.S. market [6]. - The top six brands, which account for approximately 70% of net sales, saw a 5% increase in the fourth quarter and a 4% rise for the full year [6]. - Newer brands like Lacoste and Roberto Cavalli contributed significantly, accounting for 8% of quarterly sales improvement and 9% of full-year growth [6]. Market Dynamics - Despite the global fragrance market's vibrancy, the company's sell-in has been slower than sell-out, indicating a potential weakening demand momentum due to retailers adopting a leaner inventory approach [4]. - European net sales were$ 214 million in the fourth quarter, a 6% increase from the prior period, driven by strong performances from brands like Jimmy Choo and Lacoste [7].