Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Inter Parfums, Inc. Reports Record 2023 Third Quarter Results By: Inter Parfums, Inc. via Business Wire November 07, 2023 at 16:15 PM EST Affirms FY2023 Net Sales Guidance; Increases FY2023 Net Earnings Guidance 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.” 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. 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. See Accompanying Tables 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 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 $1.50 View source version on businesswire.com: https://www.businesswire.com/news/home/20231107465923/en/Contacts Inter Parfums, Inc. Michel Atwood Chief Financial Officer (212) 983-2640 www.interparfumsinc.com or The Equity Group Inc. nvestor Relations Counsel Karin Daly (212) 836-9623 / kdaly@equityny.com Linda Latman (212) 836-9609 / llatman@equityny.com www.theequitygroup.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Inter Parfums, Inc. Reports Record 2023 Third Quarter Results By: Inter Parfums, Inc. via Business Wire November 07, 2023 at 16:15 PM EST Affirms FY2023 Net Sales Guidance; Increases FY2023 Net Earnings Guidance Inter Parfums, Inc. (NASDAQ GS: IPAR) (“Inter Parfums” or the “Company”) today reported its financial results for the three months and nine months ended September 30, 2023. Third Quarter Financial Highlights ($ 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.” 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. 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. See Accompanying Tables 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 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 $1.50 View source version on businesswire.com: https://www.businesswire.com/news/home/20231107465923/en/Contacts Inter Parfums, Inc. Michel Atwood Chief Financial Officer (212) 983-2640 www.interparfumsinc.com or The Equity Group Inc. nvestor Relations Counsel Karin Daly (212) 836-9623 / kdaly@equityny.com Linda Latman (212) 836-9609 / llatman@equityny.com www.theequitygroup.com
Inter Parfums, Inc. (NASDAQ GS: IPAR) (“Inter Parfums” or the “Company”) today reported its financial results for the three months and nine months ended September 30, 2023. Third Quarter Financial Highlights ($ 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.” 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. 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. See Accompanying Tables 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 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20231107465923/en/
Inter Parfums, Inc. Michel Atwood Chief Financial Officer (212) 983-2640 www.interparfumsinc.com or The Equity Group Inc. nvestor Relations Counsel Karin Daly (212) 836-9623 / kdaly@equityny.com Linda Latman (212) 836-9609 / llatman@equityny.com www.theequitygroup.com
