Inter Parfums (IPAR) Announces Initial 2023 Guidance

Inter Parfums, Inc. (NASDAQ GS: IPAR) today announced that it expects 2023 net sales of $1.11 billion, resulting in earnings per diluted share of $3.70. This represents an 8% increase in net sales and a 9% increase in earnings per diluted share compared to 2022 guidance of $1.025 billion in net sales and $3.40 in earnings per diluted share. Guidance assumes that the average dollar/euro exchange rate remains at current levels and there is no significant resurgence of the COVID-19 pandemic.

Jean Madar, Chairman & Chief Executive Officer of Inter Parfums, Inc. noted, “Building upon the record sales we are projecting in 2022, the increase in 2023 that we anticipate is due to a number of factors. The strength of our brand portfolio and our global distribution network have been an engine for internal growth in the past, and we expect the same in the future. We will also ship Donna Karan and DKNY products for the full year versus only five months in 2022. Finally, new product launches, primarily brand extensions and flankers, for our largest as well as our mid-sized brands, should once again be catalysts for sustained top line growth.”

He added, “We should also benefit from continued growth of our travel retail business, as well as a more streamlined and reliable supply chain and the modest price increases we plan to take in the beginning of 2023. While there has been recent news of a loosening of restrictions in China, our 2023 estimates do not factor in any of such benefits, because the current measures appear to be modest, and the timing of a resumption of business as usual is incalculable. We will continue to monitor for any changes and plan to revise our guidance accordingly.”

Michel Atwood, Chief Financial Officer of Inter Parfums, Inc. concluded, “While we expect further economies of scale and operating leverage to emerge as the business continues to grow, we will continue to invest in our organization to support our newest brands, as well as in advertising and promotion to fuel our anticipated growth. As such, we are not forecasting a significant expansion of our operating margin in 2023. Our 2023 estimated earnings per diluted share growth reflects this limited margin expansion, as well as the elimination of the one-time gains in the third quarter of 2022 that represented $0.11 per diluted share. Excluding these one-time items, we are targeting 12% earnings per diluted share growth in the coming year. We are looking to achieve yet another record year in 2023 and remain confident in the strength of our plans despite the many headwinds we have endured.”

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