Piper Sandler's analyst, Korinne Wolfmeyer, has revised the price target for Interparfums (IPAR, Financial), lowering it from $169 to $138. This adjustment is intended to more accurately reflect current market dynamics. Despite this change, the firm continues to maintain an Overweight rating on the stock.
Interparfums remains a preferred choice for Piper Sandler, even after recent events in the first quarter. The company's sales have exceeded expectations, showcasing resilience amid economic uncertainties. Furthermore, despite the price target adjustment, Interparfums’ management has reiterated their financial guidance, which Piper Sandler considers to be a judicious move. This combination of factors continues to support the firm's favorable outlook on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Interparfums Inc (IPAR, Financial) is $162.00 with a high estimate of $172.00 and a low estimate of $138.00. The average target implies an upside of 50.49% from the current price of $107.65. More detailed estimate data can be found on the Interparfums Inc (IPAR) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Interparfums Inc's (IPAR, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Interparfums Inc (IPAR, Financial) in one year is $149.61, suggesting a upside of 38.98% from the current price of $107.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Interparfums Inc (IPAR) Summary page.
IPAR Key Business Developments
Release Date: February 26, 2025
- Net Sales: $1.452 billion for the year, a 10% increase.
- Fourth Quarter Sales: $362 million, a 10% increase.
- Gross Margin: 64.5% for the fourth quarter and 63.9% for the full year.
- Operating Income: $279 million, with an operating margin of 19.2%.
- Net Income (European Operations): $140 million, a 12% increase.
- Net Income (US Operations): $69 million, an 8% increase.
- Cash and Equivalents: $235 million.
- Operating Cash Flow: $188 million, 92% of net income.
- Dividend Increase: 7% increase to $3.20 per share.
- 2025 Guidance: $1.51 billion in net sales and EPS of $5.35 per share, both a 4% growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Interparfums Inc (IPAR, Financial) achieved record fourth quarter sales and earnings, with sales reaching $1.452 billion and adjusted earnings per share surpassing guidance.
- The company successfully launched new brands, including Lacoste and Roberto Cavalli, and renewed its license agreement with Van Cleef and Arpels.
- Interparfums Inc (IPAR) was recognized in Time Magazine's sustainable growth ranking, highlighting its commitment to economic growth and environmental responsibility.
- The company's largest brand, Jimmy Choo, increased sales by 7%, and Guess grew by 13%, showcasing strong brand performance.
- Interparfums Inc (IPAR) is expanding its omnichannel services, including e-commerce platforms like Amazon and TikTok Shop, to drive growth and reach new consumers.
Negative Points
- The company faces potential tariffs, regulatory challenges, and currency fluctuations, which could impact costs and operations.
- Interparfums Inc (IPAR) is undergoing a significant reformulation of its products to comply with new regulatory standards, affecting 80% of its formulas.
- The company experienced a destocking effect, with a gap between sell-in and sell-out, although it has moderated in recent months.
- Gross margins were impacted by unfavorable brand and channel mix, particularly in European-based operations.
- The company is facing increased competition in the fragrance market, with eroding margins observed among competitors.
