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Here's Why Inter Parfums (IPAR) Gains More Than 35% in 3 Months

Focus on strategic partnerships has been driving Inter Parfums, Inc.’s IPAR growth. The provider of fragrances and related products’ is on track with effective launches. IPAR is benefiting from strength in its brand portfolio, which continued in the fourth quarter of 2022 —with net sales and earnings rising year over year.  

Inter Parfums began 2023 on a solid note, with sizable orders booked in the first two months. Management raised its 2023 guidance. For 2023, it expects net sales of nearly $1.2 billion, up 10% year over year. The company earlier expected net sales of $1.15 billion in 2023. Management expects 2023 earnings per share (EPS) to be $4.00, suggesting an increase of 6% year over year. Earlier, the company had expected earnings of $3.75 per share.

The Zacks Rank #1 (Strong Buy) company’s shares have rallied 35.5% in the past three months compared with the industry’s 1.7% growth.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Factors Driving Inter Parfums’ Growth

Inter Parfums is on track to expand its business through new licenses or acquisitions. In December 2022, its majority-owned Paris-based subsidiary, Interparfums SA, signed a license agreement with Lacoste — a well-known fashion sports brand. The parties inked a worldwide exclusive 15-year fragrance license agreement, effective Jan 1, 2024. IPAR is also optimistic about the partnerships with well-established fragrance brands like Donna Karan and DKNY.

In December 2021, Inter Parfums — through its subsidiary Interparfums Italia — signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. In October 2021, it finalized the deal with Salvatore Ferragamo S.p.A. Per the terms, IPAR holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.

The company expects to unveil new products and brand extensions throughout 2023. Its largest European-based brand, Montblanc, will release a sister scent for the signature line and one for men in the Explorer franchise. The company will introduce Rose Passion, a new flanker for Jimmy Choo. Its Coach brand will add scents for men and women. Inter Parfums’ mid-sized brands will roll out new scents, like a collection for Moncler and Chérie by Kate Spade. It will also add fragrance to the Rochas and Van Cleef & Arpels family.

In the U.S.-based operations, every brand in the portfolio is introducing companion products for existing programs. Management has a new version of GUESS Uomo and Bella Vita in the pipeline. The company is on track with launches for Abercrombie & Fitch. It will launch its first men’s scent for the MCM brand.

Certainly, focus on effective product launches along with the aforementioned upsides will keep IPAR in investors’ good books.

Solid Staple Bets

Some other top-ranked consumer staple stocks are General Mills GIS, Beyond Meat BYND and Kimberly-Clark Corporation KMB.

General Mills, a branded consumer foods company, carries a Zacks Rank #2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for General Mills’ current fiscal-year sales and earnings suggests growth of 6.3% and 7.4%, respectively, from the corresponding year-ago reported figures.

Beyond Meat, which develops, manufactures, markets and sells plant-based meat products, currently carries a Zacks Rank #2. BYND has a trailing four-quarter negative earnings surprise of 29.3%, on average.

The Zacks Consensus Estimate for Beyond Meat’s current fiscal-year earnings suggests an increase of 39.7% from the year-ago reported number.

Kimberly-Clark is engaged in the manufacture and marketing of a wide range of consumer products around the world. It currently has a Zacks Rank of 2. KMB has a trailing four-quarter earnings surprise of 1.4%, on average.

The Zacks Consensus Estimate for Kimberly-Clark’s current financial year sales and earnings suggests growth of 1.7% and 5.2%, respectively, from the year-ago reported numbers.

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