Inter Parfums, Inc. Reports 2023 Fourth Quarter and Record Full Year Results
Delivers 2023 Target EPS, Announces 20% Increase in Cash Dividend, and Affirms 2024 Guidance
($ in millions, except per share amounts) |
Three Months Ended
|
Year Ended
|
||||
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
|
|
|
|
6% |
|
|
21% |
Gross Margin |
64.7% |
64.4% |
+30 bps |
63.7% |
63.9% |
(20 bps) |
Operating Income |
|
|
(19%) |
|
|
29% |
Operating Margin |
5.7% |
7.5% |
(170 bps) |
19.1% |
17.9% |
+120 bps |
Net Income attributable to IP |
|
|
(37%) |
|
|
26% |
Diluted EPS |
|
|
(37%) |
|
|
26% |
At comparable foreign currency exchange rates, consolidated net sales for the three months and year ended |
Operational Commentary
“Of special note, for the first time ever, each of our three largest brands generated sales in excess of
“Our fourth largest brand, GUESS, grew sales by a robust 23%. With a strategically planned pipeline of innovation, the brand is well on its way to also exceed
He continued, “Especially gratifying, all of our markets experienced excellent growth last year.
“Travel retail and
“Following initial success with Phase 1 of our
“We recently introduced the highly concentrated, four scent luxury Cashmere Collection for
Financial Commentary
“SG&A as a percentage of net sales declined to 44.6% from 45.3% in 2022, largely driven by sales growth during 2023, which allowed for better absorption of fixed operating costs and favorable segment mix. While we spent
“These factors led to
“Finally, our financial position remains strong. We closed the year with
Reaffirms 2024 Guidance
“As we previously reported and included in our guidance, the
Guidance assumes that the average dollar/euro exchange rate remains at current levels.
Announces 20% Increase in Cash Dividend
The next quarterly cash dividend of
Share Buyback Program
In
Conference Call
Management will conduct a conference call to discuss financial results and business developments at
Interested parties may participate in the live call by dialing (877) 423-9820 (toll-free) or (201) 493-6749 (international).
Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin.
A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.
About
Operating in the global fragrance business since 1982,
The portfolio of prestige brands includes
Forward-Looking Statements
Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would," or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in
See Accompanying Tables
|
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Consolidated Balance Sheets |
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(In thousands except share and per share data) |
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Assets |
|
2023 |
|
2022 |
|||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
88,462 |
|
$ |
104,713 |
|
|
Short-term investments |
|
94,304 |
|
|
150,833 |
|
|
Accounts receivable, net |
|
247,240 |
|
|
197,584 |
|
|
Inventories |
|
371,859 |
|
|
289,984 |
|
|
Receivables, other |
|
|
7,012 |
|
|
28,803 |
|
Other current assets |
|
29,458 |
|
|
15,650 |
|
|
Income taxes receivable |
|
691 |
|
|
157 |
|
|
Total current assets |
|
839,026 |
|
|
787,724 |
|
|
Property, equipment and leasehold improvements, net |
|
169,222 |
|
|
166,722 |
|
|
Right-of-use assets, net |
|
28,613 |
|
|
27,964 |
|
|
Trademarks, licenses and other intangible assets, net |
|
296,356 |
|
|
290,853 |
|
|
Deferred tax assets |
|
|
14,545 |
|
|
11,159 |
|
Other assets |
|
|
21,567 |
|
|
24,120 |
|
Total assets |
$ |
1,369,329 |
|
$ |
1,308,542 |
|
|
Liabilities and Equity |
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
||
Loans payable - banks |
$ |
4,420 |
|
$ |
-- |
|
|
Current portion of long-term debt |
|
29,587 |
|
|
28,547 |
|
|
Current portion of lease liabilities |
|
5,951 |
|
|
5,296 |
|
|
Accounts payable - trade |
|
97,409 |
|
|
88,388 |
|
|
Accrued expenses |
|
178,880 |
|
|
213,621 |
|
|
Income taxes payable |
|
8,498 |
|
|
8,715 |
|
|
Total current liabilities |
|
324,745 |
|
|
344,567 |
|
|
Long–term debt, less current portion |
|
127,897 |
|
|
151,494 |
|
|
Lease liabilities, less current portion |
|
24,517 |
|
|
24,335 |
|
|
Equity: |
|
|
|
|
|||
|
|
|
|
|
|||
Preferred stock, |
|
|
|
|
|||
none issued |
|
-- |
|
|
-- |
|
|
Common stock, |
|
|
|
|
|||
outstanding, 32,004,660 and 31,967,300 shares |
|
|
|
|
|||
on |
|
32 |
|
|
32 |
|
|
Additional paid-in capital |
|
98,565 |
|
|
90,186 |
|
|
Retained earnings |
|
693,848 |
|
|
620,095 |
|
|
Accumulated other comprehensive loss |
|
(40,188 |
) |
|
(56,056 |
) |
|
|
|
|
|
|
|||
on |
|
(52,864 |
) |
|
(37,475 |
) |
|
|
|
699,393 |
|
|
616,782 |
|
|
Noncontrolling interest |
|
|
192,777 |
|
|
171,364 |
|
Total equity |
|
892,170 |
|
|
788,146 |
|
|
Total liabilities and equity |
$ |
1,369,329 |
|
$ |
1,308,542 |
|
|
|
||||||||||||||||
Consolidated Statements of Income |
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(In thousands except per share data) |
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|
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Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
|
$ |
328,739 |
|
|
$ |
310,788 |
|
|
$ |
1,317,675 |
|
|
$ |
1,086,653 |
|
Cost of sales |
|
|
116,029 |
|
|
|
110,706 |
|
|
|
478,597 |
|
|
|
392,231 |
|
Gross margin |
|
|
212,710 |
|
|
|
200,082 |
|
|
|
839,078 |
|
|
|
694,422 |
|
Selling, general and administrative expenses |
|
|
193,830 |
|
|
|
169,122 |
|
|
|
587,696 |
|
|
|
492,370 |
|
Impairment loss |
|
|
-- |
|
|
|
7,749 |
|
|
|
-- |
|
|
|
7,749 |
|
Income from operations |
|
|
18,880 |
|
|
|
23,211 |
|
|
|
251,382 |
|
|
|
194,303 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other expenses (income): |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
4,223 |
|
|
|
1,010 |
|
|
|
11,253 |
|
|
|
3,599 |
|
Loss (gain) on foreign currency |
|
|
2,238 |
|
|
|
4,166 |
|
|
|
1,582 |
|
|
|
1,921 |
|
Interest and investment (income) |
|
|
(2,308 |
) |
|
|
(3,145 |
) |
|
|
(10,729 |
) |
|
|
(5,486 |
) |
Other (income) expense |
|
|
(192 |
) |
|
|
147 |
|
|
|
(317 |
) |
|
|
50 |
|
|
|
|
3,961 |
|
|
|
2,178 |
|
|
|
1,789 |
|
|
|
84 |
|
Income before income taxes |
|
|
14,919 |
|
|
|
21,033 |
|
|
|
249,593 |
|
|
|
194,219 |
|
Income taxes |
|
|
6,689 |
|
|
|
4,104 |
|
|
|
61,817 |
|
|
|
43,182 |
|
Net income |
|
8,230 |
|
|
16,929 |
|
|
187,776 |
|
|
151,037 |
|
||||
Less: Net income attributable to the noncontrolling interest |
|
|
(2,190 |
) |
|
|
330 |
|
|
|
35,122 |
|
|
|
30,099 |
|
Net income attributable to |
|
$ |
10,420 |
|
|
$ |
16,599 |
|
|
$ |
152,654 |
|
|
$ |
120,938 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to |
|
|
|
|
|
|
|
|
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Basic |
|
$ |
0.33 |
|
|
$ |
0.52 |
|
|
$ |
4.77 |
|
|
$ |
3.80 |
|
Diluted |
|
$ |
0.32 |
|
|
$ |
0.52 |
|
|
$ |
4.75 |
|
|
$ |
3.78 |
|
|
|
|
|
|
|
|
|
|
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Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
31,977 |
|
|
31,893 |
|
|
31,994 |
|
|
31,859 |
|
||||
Diluted |
|
|
32,112 |
|
|
|
32,025 |
|
|
|
32,140 |
|
|
|
31,989 |
|
Dividends declared per share |
$ |
0.625 |
|
$ |
0.50 |
|
$ |
2.50 |
|
$ |
2.00 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227509694/en/
Chief Financial Officer
(212) 983-2640
www.interparfumsinc.com
or
Investor Relations Counsel
(212) 836-9623 / kdaly@equityny.com
www.theequitygroup.com
Source: