NASDAQ$IPAR

Inter Parfums Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Inter Parfums reported a strong fourth quarter and year-end results, increased 2021 guidance, and reinstated quarterly cash dividend.

Inter Parfums Inc. reported a surprisingly strong fourth quarter with record sales. The company's largest European brands, Montblanc, Jimmy Choo, and Coach, achieved comparable quarter sales growth. The company also signed a license with Moncler and acquired a stake in Divabox SAS.

  • Net sales declined 24.5% to $539.0 million for the year ended December 31, 2020.
  • Net income attributable to Inter Parfums, Inc. declined 36.6% to $38.2 million.
  • The Board reinstated the payment of a cash dividend, payable quarterly, at the annual rate of $1.00 per share.
  • Net sales are expected to fall within the $650 million and $660 million range for 2021.

Headline financials

Total Revenue

$184M

Previous: $178M+3.5%
EPS (adj)

$0.47

Previous: $0.26+80.8%
Avg Dollar/Euro Rate

1.19

Previous: 1.11+7.2%
Gross Margin

61.4%

Previous: 62.5%-1.8%
Capital Expenditures

$8M

Previous: $700K+1042.6%
Free Cash Flow

$77.1M

Previous: $69M+11.7%
Net Income

$38.2M

Previous: $60.2M-36.5%
Operating Income

$26.5M

Previous: $12.3M+114.6%
Gross Profit

$118M

Previous: $115M+2.6%
Cash & Equivalents

$296M

Previous: $253M+17.0%
Total Assets

$890M

Previous: $389M+128.8%
Stock-Based Comp

$1.22M

Previous: $659K+85.7%

Revenue & EPS history

Inter Parfums · Revenue · Quarterly

$184M

Q4 2020+3.5%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Net sales are expected to fall within the $650 million and $660 million range. Diluted net income per share is estimated to be in the range of $1.40 and $1.45.

Tailwinds

  • Influx of orders for established brands.
  • Addition of Kate Spade New York and MCM brand sales.
  • Favorable indications from the distribution network.
  • Targeting 21% of net sales for advertising and promotion.
  • Unwinding certain steps taken in 2020 to minimize the effects of the COVID-19 pandemic

Headwinds

  • Fixed expenses will increase slightly.
  • Assumes that the average dollar/euro average exchange rate remains at current levels.
  • Assumes that there is no significant resurgence of the COVID-19 pandemic.
  • Negligible travel retail sales.
  • Impact of COVID-19 pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-1.1%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-1.3%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+19.2%

Q3 2020

Best reaction

-13.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+5.3%-1.0%
Q4 2025-4.5%-3.7%-12.1%
Q3 2025-4.0%-3.9%-9.3%
Q1 2025+8.8%+7.8%+23.8%
Q4 2024+3.9%-2.9%-15.7%
Q3 2024-0.5%+1.9%+7.9%
Q2 2024+3.7%+2.4%-4.4%
Q1 2024-1.1%+1.9%+0.2%
Q4 2023-4.8%-4.5%-7.8%
Q3 2023+0.1%-4.2%+3.6%
Q2 2023-9.2%-9.7%-11.1%
Q1 2023-12.0%-10.3%-11.9%
Q4 2022+9.3%+16.5%+18.2%
Q3 2022-1.7%+2.4%+15.2%
Q2 2022-5.4%-3.4%-8.7%
Q1 2022-13.1%-7.5%-10.4%
Q4 2021-1.7%-7.3%-5.2%
Q3 2021-0.9%-2.0%+0.5%
Q2 2021-2.2%-6.7%-7.4%
Q1 2021-5.7%+1.0%+2.8%
Q4 2020-1.4%-2.3%-3.1%
Q3 2020+19.2%+16.6%+21.8%
Q2 2020+0.7%+4.3%-6.5%
Q1 2020-6.3%-11.5%+6.9%
Q4 2019-4.4%-6.2%-32.9%
Q3 2019+0.2%-1.1%-8.3%
Q2 2019-1.6%-1.0%-4.9%
Q1 2019-5.2%-5.2%-10.6%
Q4 2018+4.3%+4.0%+1.3%
Q3 2018+2.1%+1.7%-1.6%
Q2 2018+3.2%-0.8%+4.4%
Q1 2018-7.3%-5.1%+5.6%
Q4 2017-0.5%+2.9%+0.2%
Q3 2017-1.3%-1.5%+0.7%
Q2 2017+0.9%-0.9%+2.5%
Q1 2017-3.1%-4.1%-8.1%
Q4 2016+3.6%+8.9%+2.0%
Q3 2016+2.1%+3.0%+13.2%
Q2 2016+0.4%+1.2%-1.7%
Q1 2016-6.3%
Q4 2015-1.5%
Q3 2015+1.2%
Q2 2015-8.3%
Q1 2015+4.7%
Q4 2014+7.3%
Q3 2014-0.3%
Q2 2014+5.2%
Q1 2014-10.1%
Q4 2013-3.1%
Q3 2013-1.7%
Q2 2013-6.6%
Q1 2013+1.2%
Q4 2012-5.9%
Q4 2009-5.9%
Q3 2012-4.5%
Q2 2012+2.8%
Q1 2011+1.1%
Q1 2012-0.6%
Q4 2011-0.6%
Q3 2010-0.4%
Q3 2011-0.4%
Q2 2010-4.5%
Q4 2010-4.5%
Q2 2011-4.5%
Q1 2010+9.1%

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