EX-99.1 2 g083841_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

For Immediate Release

 

INTER PARFUMS, INC. REPORTS RECORD 2023 THIRD QUARTER RESULTS

 

Affirms FY2023 Net Sales Guidance; Increases FY2023 Net Earnings Guidance

 

NEW YORK – November 7, 2023: Inter Parfums, Inc. (NASDAQ GS: IPAR) (“Inter Parfums” or the “Company”) today reported its financial results for the three months and nine months ended September 30, 2023.

 

Third Quarter Financial Highlights
($ in millions, except per share data) 2023 2022 % Change
Net Sales $368 $280 31%
Gross Profit   $235 $182 29%
Gross Margin (as a percentage of net sales) 63.9% 64.9% (100 bps)
Operating Income $87 $64 35%
Operating Margin 23.7% 23.0% 70 bps
Net Income (attributable to Inter Parfums, Inc.) $53 $41 28%
Earnings Per Diluted Share $1.66 $1.30 28%
At comparable foreign currency exchange rates, consolidated net sales for the three months and nine months ended September 30, 2023, increased 27% and 26%, respectively, compared to the same periods last year. Of note, the average dollar/euro exchange rate for the current third quarter was 1.09 compared to 1.01 in the third quarter of 2022, while for the first nine months of 2023, the average dollar/euro exchange rate was 1.08 compared to 1.06 in the same period in 2022, leading to a positive 4% and 1% foreign exchange impact for the quarter and first nine months, respectively.

 

Operational Commentary  

“We continued to see favorable trends across the robust fragrance industry, high demand for our brands, and success in our launches, extensions, and distribution, all of which combined to produce record quarterly net sales and very strong earnings,” said Jean Madar, Chairman & Chief Executive Officer of Inter Parfums.

 

“North America continued to be our largest market, with sales increasing 29% in the third quarter compared to the prior year period, and Western Europe followed at 24% sales growth. Asia, our third largest market, performed well with net sales increasing 20% over that same period. We have been able to increase our sell-out in China, namely on Coach, Montblanc and Ferragamo, enabling us to manage down our stock-in-trade levels, which should provide a favorable tailwind in 2024.

 

“With regard to Roberto Cavalli and Lacoste, we expect to benefit from these recent license acquisitions beginning in 2024. Roberto Cavalli fragrance products are scheduled to start shipping in January 2024, with extensions planned for mid-summer next year. The Lacoste license will take effect in January 2024, and we are well prepared to launch our corresponding strategy and product innovation.”

 

Mr. Madar concluded, “As in prior years, we are making a major investment in advertising and promotion during the fourth quarter to ensure sell-out at the retail level, build brand awareness and drive continued growth. Once again, we target 21% of our annual net sales for advertising and promotion as we invest aggressively in the fourth quarter to drive sell-through. The first three quarters of 2023 have been incredibly successful, and we look forward to executing on our plans for the remainder of the year.”

 

 

 

Inter Parfums, Inc. Page 2

November 7, 2023

 

Financial Commentary 

Michel Atwood, Chief Financial Officer of Inter Parfums, noted, “Net income attributable to Inter Parfums, Inc. increased 28% to $53 million, or $1.66 per diluted share, in the third quarter of 2023, compared to $41 million, or $1.30 per diluted share, in the prior year period.

 

“Overall, in the third quarter we were able to maintain our operating margins as our pricing actions have broadly compensated for inflationary impacts.

 

“SG&A as a percentage of sales was down 170 basis points to 40.2% as the significant increase in third quarter sales allowed us to better absorb fixed expenses as compared to the prior year period despite increased investments in Advertising and Promotion, and the structural investments we made to support our new licenses.”

 

2023 Guidance 

With an update on 2023 guidance, Mr. Atwood continued, “The ongoing strength in the market, coupled with our year-to-date performance, gives us confidence in the balance of the year. We are affirming our FY2023 net sales guidance of $1.3 billion, or growth of 20% from FY2022, despite geopolitical tensions and the very high fourth quarter 2022 base.

 

“We are now increasing our earnings per diluted share guidance to $4.75 (previously guided to $4.55), or growth of 26% from $3.78 for FY 2022.”

 

Guidance for 2023 assumes that the dollar/euro average exchange rate remains at current levels; only modest sales from China are included, and newly acquired fragrance licenses, Roberto Cavalli and Lacoste, are not included.

 

Dividend 

The Company’s regular quarterly cash dividend of $0.625 per share will be paid on December 31, 2023, to shareholders of record on December 15, 2023.

 

Share Buyback Program 

In December 2022, our Board of Directors authorized a share repurchase program of up to 166,060 shares. Over the course of the first nine months of 2023, the Company repurchased 85,060 shares at a cost of $11.3 million. The Company plans to continue repurchasing shares during the balance of 2023.

 

Third Quarter 2023 Conference Call 

Management will host a conference call to discuss financial results and business developments beginning at 11:00 am ET on Wednesday, November 8, 2023.

 

Interested parties may participate in the live call by dialing (877) 423-9820 (toll-free) or (201) 493-6749 (international).

 

Participants are asked to dial-in 10 minutes before the conference call is scheduled to begin.

 

A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.

 

 

 

Inter Parfums, Inc. Page 3

November 7, 2023

 

About Inter Parfums, Inc. 

Operating in the global fragrance business since 1982, Inter Parfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance-related products under license agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations.

 

The portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan, DKNY, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, Ungaro, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Inter Parfums, Inc. is also the registered owner of several trademarks including Lanvin and Rochas.

 

Forward-Looking Statements 

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would,” or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Inter Parfums’ annual report on Form 10-K for the fiscal year ended December 31, 2022 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.

 

Contact Information 

Inter Parfums, Inc. or The Equity Group Inc.

Michel Atwood Investor Relations Counsel

Chief Financial Officer Karin Daly (212) 836-9623 / kdaly@equityny.com
(212) 983-2640 Linda Latman (212) 836-9609 / llatman@equityny.com

www.interparfumsinc.com www.theequitygroup.com

 

See Accompanying Tables

 

 

 

Inter Parfums, Inc. Page 4

November 7, 2023

 

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

(Unaudited)

 

ASSETS
   September 30,
2023
   December 31,
2022
 
Current assets:          
Cash and cash equivalents  $79,764   $104,713 
Short-term investments   103,745    150,833 
Accounts receivable, net   288,085    197,584 
Inventories   364,270    289,984 
Receivables, other   13,645    28,803 
Other current assets   26,847    15,650 
Income taxes receivable   498    157 
Total current assets   876,854    787,724 
           
Property, equipment and leasehold improvements, net   163,002    166,722 
Right-of-use assets, net   29,359    27,964 
Trademarks, licenses and other intangible assets, net   286,697    290,853 
Deferred tax assets   16,063    11,159 
Other assets   22,422    24,120 
Total assets  $1,394,397   $1,308,542 
           
LIABILITIES AND EQUITY
Current liabilities:          
Loans payable - banks  $4,501   $ 
Current portion of long-term debt   41,768    28,547 
Current portion of lease liabilities   5,687    5,296 
Accounts payable – trade   87,161    88,388 
Accrued expenses   200,065    213,621 
Income taxes payable   23,913    8,715 
Total current liabilities   363,095    344,567 
           
Long–term debt, less current portion   128,983    151,494 
           
Lease liabilities, less current portion   25,452    24,335 
           
Equity:          
Inter Parfums, Inc. shareholders’ equity:          
Preferred stock, $.001 par; authorized
1,000,000 shares; none issued
        

Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,980,805 and 31,967,300 shares at September 30, 2023 and December 31, 2022, respectively

   32    32 
Additional paid-in capital   95,752    90,186 
Retained earnings   703,091    620,095 
Accumulated other comprehensive loss   (59,802)   (56,056)
Treasury stock, at cost, 9,949,865 and 9,864,805 shares at September 30, 2023 and December 31, 2022, respectively   (48,764)   (37,475)
Total Inter Parfums, Inc. shareholders’ equity   690,309    616,782 
Noncontrolling interest   186,558    171,364 
Total equity   876,867    788,146 
Total liabilities and equity  $1,394,397   $1,308,542 

 

 

Inter Parfums, Inc. Page 5

November 7, 2023

 

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share data) 

(Unaudited)

 

   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2023   2022   2023   2022 
                 
Net sales  $367,969   $280,462   $988,936   $775,865 
                     
Cost of sales   132,962    98,562    362,568    281,525 
                     
Gross margin   235,007    181,900    626,368    494,340 
                     
Selling, general and administrative expenses   147,805    117,424    393,866    323,249 
                     
Income from operations   87,202    64,476    232,502    171,091 
                     
Other expenses (income):                    
Interest expense   2,397    682    7,030    2,589 
(Gain) loss on foreign currency   (669)   273    (656)   (2,245)
Interest and investment income   (1,062)   (3,343)   (8,421)   (2,341)
Other (income) expense   (77)   346    (125)   (98)
                     
    589    (2,042)   (2,172)   (2,095)
                     
Income before income taxes   86,613    66,518    234,674    173,186 
                     
Income taxes   20,493    13,221    55,128    39,078 
                     
Net income   66,120    53,297    179,546    134,108 
                     
Less:  Net income attributable to the noncontrolling interest   12,906    11,874    37,312    29,769 
                     
Net income attributable to Inter Parfums, Inc.
  $53,214   $41,423   $142,234   $104,339 
                     
Earnings per share:                    
                     
Net income attributable to Inter Parfums, Inc. common shareholders:                    
Basic  $1.66   $1.30   $4.44   $3.28 
Diluted  $1.66   $1.30   $4.42   $3.26 
                     
Weighted average number of shares outstanding:                    
Basic   31,976    31,860    32,000    31,848 
Diluted   32,124    31,968    32,149    31,977 
                     
Dividends declared per share  $0.625   $0.50   $1.875   $1.50