In This Article:
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Revenue Growth: North America up 12%, Western Europe up 25%, Asia Pacific up 15%, Central and South America up 20%, Eastern Europe up 23%.
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Travel Retail Sales: Increased 24% year-over-year, representing 7% of net sales.
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Gross Margin: Unchanged at 63.9% for Q3; year-to-date gross margin expanded to 63.6%.
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Advertising and Promotion (A&P) Expenses: Increased 6% to 16% of net sales for Q3; 19% to 16.6% for the first nine months of 2024.
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SG&A Expenses: Increased 12% for Q3, representing 38.9% of net sales.
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Operating Margin: 25% for Q3, up from 23.7% in the same period last year.
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Net Income Impact: Foreign exchange losses of $3.3 million in Q3.
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Accounts Receivable: Up 41% from year-end 2023; Days Sales Outstanding at 83 days.
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Inventory Levels: Increased 9% from year-end 2023; finished goods make up 63% of inventory.
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Net Cash Provided by Operating Activities: $76 million for Q3, up from $18 million in the prior year.
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Working Capital: $617 million, including $157 million in cash and equivalents.
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Long-term Debt: $179 million at the end of Q3.
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2024 Guidance: Net sales of $1.45 billion; earnings per diluted share of $5.15.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Interparfums (STU:I8P) reported the best third quarter in its history, with strong sales across all major markets.
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Sales in North America, Western Europe, and Asia Pacific grew by 12%, 25%, and 15% respectively, showcasing robust market performance.
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The company's Travel Retail business increased by 24% year-over-year, moving closer to its target of 10% of annual net sales.
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Interparfums is expanding its promotional efforts, particularly through social media and influencer marketing, which has been successful.
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The company is launching new products and expanding existing lines, with significant growth expected from brands like DKNY and Lacoste.
Negative Points
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Interparfums faces challenges with foreign exchange losses, which impacted net income by $3.3 million in the third quarter.
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Accounts receivables increased by 41% from year-end 2023, indicating potential cash flow management issues.
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The company is experiencing a disconnect between sell-in and sell-out, with destocking continuing across the industry.
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Interparfums remains underpenetrated in the Chinese market and is cautious about entering due to market volatility.
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Inventory levels increased by 9% from the previous year, which could indicate inefficiencies in inventory management.