Fragrance and perfume company Inter Parfums (NASDAQ: IPAR) met Wall Streets revenue expectations in Q3 CY2025, with sales up 1.2% year on year to $429.6 million. On the other hand, the company’s full-year revenue guidance of $1.47 billion at the midpoint came in 1.7% below analysts’ estimates. Its GAAP profit of $2.05 per share was 6.2% above analysts’ consensus estimates.
Is now the time to buy Inter Parfums? Find out by accessing our full research report, it’s free for active Edge members.
Inter Parfums (IPAR) Q3 CY2025 Highlights:
- Revenue: $429.6 million vs analyst estimates of $429.5 million (1.2% year-on-year growth, in line)
- EPS (GAAP): $2.05 vs analyst estimates of $1.93 (6.2% beat)
- The company dropped its revenue guidance for the full year to $1.47 billion at the midpoint from $1.51 billion, a 2.6% decrease
- EPS (GAAP) guidance for the full year is $5.12 at the midpoint, missing analyst estimates by 1.6%
- Operating Margin: 25.3%, in line with the same quarter last year
- Market Capitalization: $2.88 billion
Company Overview
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $1.46 billion in revenue over the past 12 months, Inter Parfums is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.
As you can see below, Inter Parfums’s sales grew at a solid 14.1% compounded annual growth rate over the last three years. This is a good starting point for our analysis because it shows Inter Parfums’s demand was higher than many consumer staples companies.
This quarter, Inter Parfums grew its revenue by 1.2% year on year, and its $429.6 million of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6.8% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is above the sector average and suggests the market sees some success for its newer products.
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Cash Is King
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
Inter Parfums has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors. The company’s free cash flow margin averaged 10.2% over the last two years, quite impressive for a consumer staples business.
Key Takeaways from Inter Parfums’s Q3 Results
It was good to see Inter Parfums beat analysts’ EPS expectations this quarter. On the other hand, its full-year revenue guidance missed and its full-year EPS guidance fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $91.25 immediately after reporting.
Big picture, is Inter Parfums a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
