Inter Parfums, Inc. IPAR looks solid on the back of product launches to boost assortment strength. The provider of fragrances and related products is benefiting from brand strength that yielded in 2021. The company is on track to expand its business through strategic partnerships.

Inter Parfums’ 2022 top-and bottom-line views reflect year-over-year growth. Inter Parfums anticipates net sales of approximately $975 million, reflecting growth from $879.5 million reported in 2021. Management expects earnings per share (EPS) of $3.00 for 2022, higher than EPS of $2.75 in 2021. The Zacks Rank #2 (Buy) company’s shares have rallied 22% in the past six months against the industry’s 32.7% decline.

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Strategic Partnership Holds Key to Growth

Inter Parfums is on track to expand its business through new licenses or acquisitions. In December 2021, Inter Parfums, through its subsidiary Interparfums Italia, signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. The partnership is aimed at creating, developing and distributing fragrances and fragrance-related products under the Emanuel Ungaro brand. In October 2021, Inter Parfums had finalized the agreement with Salvatore Ferragamo S.p.A. Per the agreement, Inter Parfums holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.

In September 2021, Inter Parfums entered into a long-term global licensing agreement with G-III Apparel Group, Ltd. GIII to create, develop as well as distribute fragrances and related items under well-known brands like DKNY and Donna Karan. We note that G-III Apparel designs, sources and markets women's and men's apparel globally. GIII continuously strengthens its power brands through innovations as well as partnerships and licensing agreements. G-III Apparel is investing in data analytics capabilities to identify consumers across channels and boost their shopping experiences.

Coming back to Inter Parfums, it has been gaining on its strategic partnerships with Origines-parfums as well as Moncler SpA. In July 2020, Inter Parfums’ majorly-owned subsidiary, Interparfums SA acquired 25% of Divabox’s capital. Notably, Divabox is the owner of Origines-parfums, which is a renowned French company in the online beauty market. Prior to this, Interparfums SA signed an agreement with renowned luxury brand, Moncler SpA in June 2020. The deal gave Inter Parfums rights to fragrance-related items in Monclermono brand stores along with few other specialty shops, department stores and duty-free shops.