Inter Parfums Q3 Profit Up 42%, Results Meet View; Reiterates Outlook

(RTTNews) - Cosmetics company Inter Parfums Inc. (IPAR) on Monday reported a 42 percent increase in profit for the third quarter from last year, reflecting higher sales and margins in addition to a foreign currency gain. Results for the quarter matched analysts' estimates. Looking ahead, the company reaffirmed its financial outlook for fiscal 2014.

New York-based Inter Parfums' net income for the third quarter was $11.11 million or $0.36 per share, up from $7.85 million or $0.25 per share in the same period last year.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share for the latest quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 6 percent to $134.21 million from $126.75 million in the same period last year. Analysts had a consensus revenue estimate of $134.20 million.

Inter Parfums noted that new product launches and the continued popularity of many of its established scents produced the increase in third-quarter sales, especially its three largest. The introduction of the first Karl Lagerfeld fragrances for men and women added $3.7 million in incremental third-quarter sales and $20.9 million for the first nine months.

The company's European-based operations generated a 6 percent increase in sales for the quarter from last year to $103.4 million. Sales by U.S.-based operations grew 7 percent to $30.8 million, reflecting the recent addition of Agent Provocateur, Dunhill and Oscar de la Renta.

Gross margin expanded to 56.1 percent from 55.2 percent in the year-ago period, reflecting better product mix for the company's European-based operations and the addition of several prestige brand names to the U.S. brand portfolio. Operating margin increased to 13.9 percent from 11.6 percent in the prior-year quarter.

The latest quarter's results include a gain on foreign currency of $1.13 million, compared to loss of $176 thousand in the year-ago period.

Looking ahead to fiscal 2014, Inter Parfums reaffirmed its outlook for net sales of about $495 million, or 15 percent ahead of 2013 net sales of ongoing brands, and net income attributable to the company of $0.93 to $0.95 per share.

Analysts expect the company to report earnings of $0.93 per share for the year on revenue of $493.17 million.

Inter Parfums said that later in November, it will release its initial guidance on December 31, 2014.

The company said its regular quarterly cash dividend of $0.12 per share will be paid on January 15, 2014 to shareholders of record on December 31, 2014.

IPAR closed Monday's trading at $29.22, down $0.04 or 0.14 percent on a volume of 113,238 shares. However, in after-hours, the stock gained $0.01 or 0.02 percent to $29.23.