Interparfums (ITP) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached €423m, up 7% year-over-year, in line with budget despite a high comparison base from 2023's major launches and restocking.

• Strong demand for flagship lines and successful start of Lacoste fragrance distribution, notably Lacoste Original.

• Maintained high gross margin and solid financial structure, with equity at €634m.

• Several major launches in late 2022 and early 2023 impacted the comparison base.

• Q2 2024 sales were €210m, up 15.7% at current exchange rates, maintaining strong momentum.

Financial highlights

• H1 2024 sales: €423m (+7% year-over-year); gross margin: €274.4m (64.9% of sales), up 8%.

• Operating profit: €92.7m (21.9% margin), down from 25.8% in H1 2023 due to higher marketing spend.

• Net income: €70.1m (16.5% margin), down 10% year-over-year; EPS: €1.01 (vs. €1.23 in H1 2023).

• Marketing & advertising expenses rose 31% to €79.1m, representing 18.7% of sales.

• Dividend of €1.15/share paid in May 2024, representing 67% of net profit.

Outlook and guidance

• 2024 sales target confirmed at €880m–€900m, supported by a healthy order backlog and high summer invoicing.

• Profitability expected to remain high despite increased investments, especially in Lacoste.

• 2025 to feature substantial new launches and major line extensions for key brands.

• Van Cleef & Arpels license renewed for 9 years from 2025, with new launches planned.

• Launch of the Solférino Paris line and a Paris boutique planned for 2025.