Inter Parfums began 2025 with first-quarter results that exceeded Wall Street’s expectations, driven by strong performances from core brands like Coach, Jimmy Choo, and Donna Karan/DKNY, as well as new launches such as Lacoste and Casale. CEO Jean Madar attributed the quarter’s growth to the company’s diversified prestige portfolio and agile supply chain, which allowed it to quickly adapt to changing consumer demand and minimize disruptions. The U.S. business showed resilience despite a soft market, supported by direct-to-retail distribution that contributed to higher margins. Management also highlighted the robust appeal of fragrance as an accessible luxury, even as consumer spending patterns shifted.
Is now the time to buy IPAR? Find out in our full research report (it’s free).
Inter Parfums (IPAR) Q1 CY2025 Highlights:
- Revenue: $338.8 million vs analyst estimates of $329.5 million (4.6% year-on-year growth, 2.8% beat)
- EPS (GAAP): $1.32 vs analyst estimates of $1.13 (17.3% beat)
- Adjusted EBITDA: $81 million vs analyst estimates of $67.75 million (23.9% margin, 19.6% beat)
- The company reconfirmed its revenue guidance for the full year of $1.51 billion at the midpoint
- EPS (GAAP) guidance for the full year is $5.35 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 22.2%, up from 21% in the same quarter last year
- Market Capitalization: $4.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Inter Parfums’s Q1 Earnings Call
- Susan Anderson (Canaccord Genuity) asked about U.S. retail inventory trends and whether destocking was impacting performance. CFO Michel Atwood explained that inventory mismatches had largely abated and noted moderate share growth in the U.S. despite a tight market.
- Susan Anderson (Canaccord Genuity) inquired about regional consumer trends in fragrance. CEO Jean Madar acknowledged slower growth in Europe, particularly France and Germany, and a muted China market, but pointed to continued overall growth in the fragrance segment.
- Korinne Wolfmeyer (Piper Sandler) sought more detail on tariff exposure and gross margin outlook. Atwood estimated a potential 300 basis point impact in a “do-nothing” scenario but expects two-thirds mitigation through supply chain actions and pricing.
- Korinne Wolfmeyer (Piper Sandler) asked about operating margin drivers. Atwood noted favorable brand and channel mix, with higher-margin direct U.S. sales and lower-than-expected A&P spend shifting to later quarters.
- Ashley Helgans (Jefferies) questioned the resilience of the luxury segment in a downturn. Management responded that luxury continues to outperform, with consumers valuing distinctiveness and quality over price alone, and highlighted ongoing premiumization initiatives.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the execution of planned product launches across both established and new brands, (2) the effectiveness of tariff mitigation strategies on gross margins and pricing, and (3) the integration progress of new acquisitions and the proprietary Solférino brand. Additionally, we will watch for any changes to guidance as macroeconomic and regulatory conditions evolve.
Inter Parfums currently trades at $132.73, up from $110.37 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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