Fragrance and perfume company Inter Parfums (NASDAQ: IPAR) announced better-than-expected revenue in Q4 CY2025, with sales up 6.8% year on year to $386.2 million. On the other hand, the company’s full-year revenue guidance of $1.48 billion at the midpoint came in 2% below analysts’ estimates. Its GAAP profit of $0.88 per share was 11.4% above analysts’ consensus estimates.
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Inter Parfums (IPAR) Q4 CY2025 Highlights:
- Revenue: $386.2 million vs analyst estimates of $376.8 million (6.8% year-on-year growth, 2.5% beat)
- EPS (GAAP): $0.88 vs analyst estimates of $0.79 (11.4% beat)
- EPS (GAAP) guidance for the upcoming financial year 2026 is $4.85 at the midpoint, missing analyst estimates by 0.8%
- Operating Margin: 7.1%, down from 10% in the same quarter last year
- Market Capitalization: $3.26 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 sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $1.49 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 decent 11.1% compounded annual growth rate over the last three years. This shows its offerings generated slightly more demand than the average consumer staples company, a helpful starting point for our analysis.
This quarter, Inter Parfums reported year-on-year revenue growth of 6.8%, and its $386.2 million of revenue exceeded Wall Street’s estimates by 2.5%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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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 impressive cash profitability, driven by its attractive business model that gives it the option to reinvest or return capital to investors. The company’s free cash flow margin averaged 8.9% over the last two years, better than the broader consumer staples sector.
Key Takeaways from Inter Parfums’s Q4 Results
It was encouraging to see Inter Parfums beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its gross margin missed and its full-year revenue guidance fell short of Wall Street’s estimates. Overall, this quarter was mixed. The stock remained flat at $103.01 immediately after reporting.
Big picture, is Inter Parfums a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
