Inter Parfums (IPAR) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of $1.452 billion in 2024, up 10% year-over-year, with adjusted EPS of $5.18, both surpassing guidance.

• Launched Lacoste and Roberto Cavalli brands, renewed Van Cleef & Arpels license, and signed agreement for Off-White fragrances starting 2026.

• Recognized in Time Magazine's World's Best Companies Sustainable Growth Ranking, with Inter Parfums SA ranked 44th globally.

• Strong performance from Jimmy Choo (+7%) and Guess (+13%), with new launches and brand extensions planned for 2025.

• Top six brands, representing 70% of net sales, grew 4% for the year; Lacoste and Cavalli exceeded $115 million in combined sales.

Financial highlights

• Consolidated net sales grew 10% year-over-year to $1.452 billion; Q4 sales reached $362 million.

• Gross margin for the year was 63.9%; operating income before impairment rose 11% to $279 million, with a 19.2% operating margin.

• Net income attributable to shareholders was $164 million, up 8% year-over-year.

• Operating cash flow reached $188 million (92% of net income), up from $106 million in 2023.

• Board approved a 7% dividend increase to $3.20 per share, representing a 60% payout on 2025 expected EPS.

Outlook and guidance

• 2025 guidance maintained at $1.51 billion in net sales and $5.35 EPS, both representing 4% growth.

• Expecting higher A&P expenses in H1 2025 to support blockbuster launches and innovation.

• Guidance assumes stable dollar/euro exchange rates and a more moderated market pace due to retail destocking and economic uncertainty.

• Anticipate flat to modest growth in Q1 due to FX headwinds and Dunhill exit, with stronger growth in H2 as new launches roll out.