Shares of Inter Parfums Inc. (IPAR), a maker of fragrances, gained more than 5 percent in extended trades Wednesday after the company's first-quarter results beat analysts' estimates and the company raised its earnings outlook for fiscal 2013.
The company's first-quarter profit doubled from last year on strong revenue growth at its European-based operations as well as lower expenses.
Jean Madar, Chairman & CEO of Inter Parfums said, "Sales of our ongoing prestige brands posted strong growth during the first quarter. Excluding Burberry from both the current and prior year quarters, European-based sales were up 15.5% year-over-year to $85.5 million."
The company's European-based operations recorded a 34 percent increase in sales for the quarter to $195.1 million, while sales by U.S.-based operations declined 8 percent to $18.7 million.
New York-based Inter Parfums' first-quarter net income rose to $31.70 million or $1.03 per share from $15.50 million or $0.51 per share in the year-ago period. On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the first quarter.
Net sales for the quarter grew 29 percent to $231.81 million from $165.37 million in the previous-year quarter. Analysts had a consensus revenue estimate of $213.85 million.
However, gross margin declined to 63.0 percent from 64.5 percent in the year-ago period, primarily due to commercial rebates granted to certain customers as part of a planned effort to reduce the level of inventory.
Selling, general and administrative expenses for the quarter, as a percentage of net sales, was 31.7 percent compared to 45.3 percent in the year-ago period.
The company noted that lower promotional spending combined with a 54 percent increase in Burberry brand sales and a 15.5 percent increase in sales for its ongoing prestige brands created significant leverage in selling, general and administrative expenses.
Looking ahead to the fiscal year 2013, Inter Parfums raised its earnings outlook to a range of $1.10 to $1.12 per share from the prior range of $1.00 to $1.02 per share. However, the company maintained its net sales outlook of about $510 million for the year. Analysts expect the company to report earnings of $1.03 per share for the year on revenues of $518.36 million.
In addition, the company has declared a cash dividend of $0.12 per share, payable on July 15, to shareholders of record on June 28.
IPAR closed Wednesday's regular trading session at $29.35, up $0.31 or 1.07 percent on a volume of 116,173 shares. In after-hours, the stock further gained $1.65 or 5.62 percent to $31.00.
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