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Inter Parfums (IPAR) Ups 2021 Earnings View on Solid Q4 Sales

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Inter Parfums, Inc. IPAR released record-high sales numbers for fourth-quarter and full-year 2021. The sales uptick encouraged management to raise earnings guidance for 2021. Inter Parfums also pulled up its top-and bottom-line view for 2022.

For 2021, management now expects earnings per share (EPS) of $2.65. Earlier, Inter Parfums had anticipated EPS of $2.45 for 2021. The company now anticipates 2022 net sales of $975 and EPS are expected to be $3.00. Management had earlier projected 2022 net sales in the range of $925-$950 million. EPS for the same period were expected between $2.80 and $2.85.

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Sales Numbers in Detail

Fourth-quarter 2021 sales increased 15% (same at constant currency) from the year-ago quarter’s levels to $210.8 and rose 19% (up 14% at cc) from fourth-quarter 2019 figures. The company’s Europe-based product sales came in at $136.2 million in the fourth quarter, up 6% from 2019 levels. U.S.-based product sales amounted to $74.6 million, surging 53% from fourth-quarter 2019.

Inter Parfums’ 2021 sales amounted to $879.6 million, up 63% year over year and 23% from 2019 levels. Sales in the Europe and U.S.-based operations during 2021 increased 22% and 26%, respectively, from 2019 levels.

Inter Parfums’ four largest brands, Montblanc, Jimmy Choo, Coach and GUESS increased 7%, 34%, 41% and 41%, respectively, from 2019 tallies. The company’s mid-sized brands like Hollister, Abercrombie & Fitch, Oscar de la Renta, Van Cleef & Arpels and Karl Lagerfeld performed well during 2021. IPAR’s new additions, including Kate Spade, MCM, Ferragamo and Moncler, also contributed to sales. Inter Parfums’ largest market — North America — registered sales growth of 50% from 2019 levels. Sales across Western Europe, Asia, Latin America and Eastern Europe increased 9%, 15%, 22% and 26%, respectively. The Middle East region registered a sales decline from 2019 level.

Product Launches on Track

Inter Parfums completed the integration of Ungaro and Ferragamo brands, while its Italian subsidiary is completely operational. The company has impressive product launches in the pipeline. In this regard, management expects to launch the first Moncler fragrance line in a series of selective points of sale. The company will roll out a men’s collection for GUESS during spring. Inter Parfums will debut extensions of Montblanc Legend, Jimmy Choo Man and Jimmy Choo’s I Want Choo in the first, the second and the third quarter, respectively. Management plans to introduce a men’s line for Coach and Boucheron brands during the third quarter. Further, the company is working on brand extensions and flankers for Hollister, MCM, Abercrombie & Fitch, Anna Sui and Oscar de la Renta. Inter Parfums will also add the Donna Karan and DKNY fragrance brands to its portfolio during the summer.

The company is optimistic about its growth prospects for 2022, despite headwinds like dismal travel retail business coupled with supply chain related hurdles. Shares of the Zacks Rank #3 (Hold) company have gained 19.4% in the past six months against the industry’s fall of 32.1%.

3 Solid Staple Picks

Some better-ranked consumer staple companies are The Estee Lauder Companies EL, Helen of Troy Limited HELE and United Natural Foods UNFI.

Helen of Troy, the developer and distributor of a portfolio of consumer products worldwide, currently sports a Zacks Rank #1 (Strong Buy). HELE has dropped 3.4% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Helen of Troy’s current financial year’s sales suggests growth of 0.8% from the year-ago reported figure. HELE has a trailing four-quarter earnings surprise of 19.1%, on average.

United Natural Foods, the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada, sports a Zacks Rank #1 at present. UNFI has rallied 13.6% in the past six months.

The Zacks Consensus Estimate for United Natural Foods’ current financial year EPS and sales suggests growth of 5.1% and 8.8%, respectively, from the year-ago reported number. UNFI has a trailing four-quarter earnings surprise of 35.4%, on average.

The Estee Lauder Companies, manufacturing and selling skincare, makeup, fragrance and hair care products worldwide, currently carries a Zacks Rank #2 (Buy). EL has declined 9.5% in the past six months.

The Zacks Consensus Estimate for The Estee Lauder Companies’ current financial year sales suggests growth of 15.4% from the year-ago reported figure. EL has a trailing four-quarter earnings surprise of 37%, on average.


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