Inter Parfums rating boosted

Published: 30-Jul-2014

Fragrance brand distributor boosted by a Zacks Neutral rating, upgrading stock from Underperform

Paul Smith and Jimmy Choo brand distributor Inter Parfums has been boosted by a Zacks Neutral rating.

Zacks upgraded the stock from Underperform. The positive coverage on Inter Parfums is also shared from analysts at Sidoti, upgrading the stock from Neutral to Buy. Inter Parfums share price has ranged from little more than US$26 to almost $39 in the last year. Before going to press its shares were selling at $27.34.

Inter Parfums reported earnings per share of $0.29 for the last quarter, just swerving a Thomson Reuters consensus estimate of $0.30. The company released its second quarter financial results at the end of July, reporting a 22.1% increase in net sales of the company’s ongoing brands (excluding Burberry brand sales) for the three months ended 30 June compared to the same period last year. Revenues not including Burberry hit US$118.2m.

With Burberry, they reached $20.7m, reflecting a 0.6% rise in consolidated 2014 Q2 net sales. The 31.2% rise in Q2 European sales was driven by new product launches such as Montblanc Emblem, the first Karl Lagerfeld fragrances and Jimmy Choo Flash. In the US, sales declined slightly following last year’s takeover of the manufacture and distribution of Dunhill legacy fragrances.

“However, we are growing that brand and the others that we added in late 2012 and 2013 by launching new products and pursuing expanded distribution,” said Chairman and CEO Jean Madar. “We will begin shipping our first all new Dunhill fragrance called Icon during the fourth quarter of 2014, and will be in selective distribution until early 2015. Our early spring launches, Fatale and Fatale Pink for Agent Provocateur, have been well received in international markets, and we expect momentum to continue... in the fall.”

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