Inter Parfums (IPAR) Misses Q1 EPS by 11c, Revenues Miss

Inter Parfums (NASDAQ: IPAR) reported Q1 EPS of $0.32, $0.11 worse than the analyst estimate of $0.43. Revenue for the quarter came in at $144.8 million versus the consensus estimate of $157.84 million.

First Quarter 2020 Compared to First Quarter 2019:

• Net sales were $144.8 million or 18.7% lower than $178.2 million, at comparable foreign currency exchange rates, net sales declined 17.8%;
• Sales by European based operations declined 20.6% to $114.1 million from $143.7 million;
• Sales by U.S. based operations declined 10.9% to $30.7 million from $34.5 million;
• Gross margin was 61.5% of net sales compared to 61.6% of net sales;
• S,G&A expense as a percentage of net sales was 49.2% compared to 42.9%;
• Operating income decreased 46.6% to $17.8 from $33.3 million;
• Operating margin was 12.3% compared to 18.7%;
• The effective income tax rate was 29.0% compared to 27.4%;
• Net income attributable to Inter Parfums, Inc. declined 46.8% to $10.1 million from $18.9 million; and,
• Net income attributable to Inter Parfums, Inc. per diluted share declined 46.7% to $0.32 from $0.60.

Jean Madar, Chairman & CEO of Inter Parfums, Inc. noted, “As we reported last month, two of our largest brands performed exceptionally well in the first quarter. The launch of Coach Dreams early in the year factored prominently in the 35.9% increase in Coach brand sales. GUESS brand sales rose 28.9% on the strength of existing scents and brand extensions launched in 2019. Comparable quarter sales declined for our other major brands following the closure of virtually all points of sale throughout the world by the middle of March due to the global COVID-19 pandemic. Also, as we pointed out last month, our first and second largest brands, Montblanc and Jimmy Choo, recorded increases of 9.9% and 25.8%, respectively for the 2019 first quarter, setting a high bar for 2020.”

For earnings history and earnings-related data on Inter Parfums (IPAR) click here.

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