Home > Analyses > Consumer Defensive > Inter Parfums, Inc.
Inter Parfums, Inc. crafts the scents that define elegance and personal identity worldwide. It commands a unique niche in fragrances, blending renowned luxury brands like Jimmy Choo and Montblanc with innovative product lines. I’ve observed that its global reach and premium positioning fuel consistent demand even amid shifting consumer trends. Now, the critical question is whether Inter Parfums’ robust fundamentals support its current valuation and future growth prospects.
Table of contents
Business Model & Company Overview
Inter Parfums, Inc., founded in 1982 and headquartered in New York City, commands a leading position in the Household & Personal Products sector. It crafts a cohesive ecosystem of fragrances and related products under prestigious brands like Coach, Jimmy Choo, and Montblanc. This portfolio combines luxury and accessibility, appealing to diverse consumer tastes globally. The company’s dual-segment structure—European and U.S. operations—enhances its robust market footprint.
Its revenue engine balances product sales across department stores, specialty shops, and e-commerce, creating a diversified income stream. Inter Parfums leverages its international reach in the Americas, Europe, and Asia to maximize brand exposure and distribution. This global presence, paired with a strong brand portfolio, forms a durable economic moat that shapes the future of the fragrance industry.
Financial Performance & Fundamental Metrics
I analyze Inter Parfums, Inc.’s income statement, key financial ratios, and dividend payout policy to assess its profitability and shareholder value creation.
Income Statement
This table presents Inter Parfums, Inc.’s key income statement items for fiscal years 2021 through 2025, reflecting revenue, expenses, and profitability metrics in USD.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Revenue | 880M | 1.09B | 1.32B | 1.45B | 1.49B |
| Cost of Revenue | 323M | 392M | 479M | 525M | 541M |
| Operating Expenses | 409M | 500M | 588M | 653M | 677M |
| Gross Profit | 557M | 694M | 839M | 927M | 947M |
| EBITDA | 167M | 220M | 278M | 305M | 270M |
| EBIT | 154M | 198M | 261M | 276M | 0 |
| Interest Expense | 2.8M | 3.6M | 11.3M | 7.8M | 0 |
| Net Income | 87M | 121M | 153M | 164M | 271M |
| EPS | 2.76 | 3.80 | 4.77 | 5.13 | 5.25 |
| Filing Date | 2022-03-01 | 2023-02-28 | 2024-02-27 | 2025-03-11 | 2026-02-24 |
Income Statement Evolution
Inter Parfums, Inc. showed strong revenue growth from 879M in 2021 to 1.49B in 2025, a 69% rise over five years. Net income surged over 210% in the same period, driving net margin expansion from roughly 10% to 18%. However, last year’s revenue growth slowed to 2.5%, while EBIT margin dropped sharply to zero, signaling margin pressure.
Is the Income Statement Favorable?
The 2025 income statement reveals solid fundamentals with a favorable gross margin of 63.6% and a strong net margin of 18.2%. Absence of interest expense enhances profitability. Despite EBIT margin falling to zero, net income and EPS improved, reflecting efficient cost control or non-operating gains. Overall, the income statement leans favorable, though EBIT weakness warrants caution.
Financial Ratios
The table below presents key financial ratios for Inter Parfums, Inc. (IPAR) over the fiscal years 2021 to 2025, illustrating profitability, valuation, liquidity, leverage, and efficiency metrics:
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 9.9% | 11.1% | 11.6% | 11.3% | 18.2% |
| ROE | 15.3% | 19.6% | 21.8% | 22.1% | 0% |
| ROIC | 11.7% | 15.1% | 17.4% | 18.4% | 0% |
| P/E | 38.7 | 25.4 | 30.2 | 25.6 | 10.0 |
| P/B | 5.9 | 5.0 | 6.6 | 5.7 | 0 |
| Current Ratio | 2.90 | 2.29 | 2.58 | 2.75 | 0 |
| Quick Ratio | 2.09 | 1.44 | 1.44 | 1.63 | 0 |
| D/E | 0.32 | 0.34 | 0.28 | 0.26 | 0 |
| Debt-to-Assets | 16.1% | 16.0% | 14.0% | 13.6% | 0% |
| Interest Coverage | 52.4 | 54.0 | 22.3 | 35.1 | 0 |
| Asset Turnover | 0.77 | 0.83 | 0.96 | 1.03 | 0 |
| Fixed Asset Turnover | 4.80 | 5.58 | 6.66 | 8.14 | 0 |
| Dividend Yield | 0.94% | 2.07% | 1.74% | 2.28% | 3.77% |
Evolution of Financial Ratios
From 2021 to 2025, Inter Parfums, Inc. showed fluctuations in profitability margins, with net profit margin rising steadily to 18.23% in 2025. The current ratio demonstrated a declining trend, dropping to zero in 2025 due to data unavailability. Debt-to-equity ratio remained low or zero in 2025, indicating stable or reduced leverage. Profitability improved but liquidity metrics weakened.
Are the Financial Ratios Favorable?
In 2025, profitability ratios like net margin (18.23%) and P/E ratio (10.04) appear favorable, implying strong earnings and reasonable valuation. However, liquidity ratios such as current and quick ratios are unfavorable, reflecting possible short-term solvency concerns. Leverage ratios including debt-to-equity and debt-to-assets are favorable, suggesting low financial risk. Overall, the ratio profile is slightly unfavorable due to mixed signals in liquidity and efficiency.
Shareholder Return Policy
Inter Parfums, Inc. maintains a consistent dividend policy with a payout ratio near 38% in 2025 and a dividend yield of approximately 3.77%. The dividend per share has steadily increased over recent years, supporting shareholder income. There is no explicit data on share buybacks in the latest fiscal year.
The payout appears sustainable given the company’s consistent profitability and dividend coverage. However, the absence of free cash flow metrics warrants cautious monitoring. Overall, the return policy aligns with preserving long-term shareholder value through balanced distributions.
Score analysis
The following radar chart illustrates Inter Parfums’ key financial scores across valuation, profitability, and leverage metrics:
Inter Parfums posts strong profitability with top scores in ROE and ROA at 5 each. Its debt-to-equity score is moderate at 3. Valuation metrics—DCF, PE, and PB—show unfavorable scores of 2, indicating pricing concerns despite solid fundamentals.
Analysis of the company’s bankruptcy risk
Inter Parfums sits comfortably in the safe zone with an Altman Z-Score above 7, signaling very low bankruptcy risk:
Is the company in good financial health?
The Piotroski diagram below summarizes the company’s financial strength using nine fundamental criteria:
With a Piotroski Score of 4, Inter Parfums ranks as average in financial health. This score indicates moderate strength but suggests room for improvement in profitability, leverage, or operational efficiency metrics.
Competitive Landscape & Sector Positioning
This section explores Inter Parfums, Inc.’s strategic positioning within the Household & Personal Products sector. It assesses revenue distribution, key products, and main competitors shaping the market landscape. I will evaluate whether Inter Parfums holds a competitive advantage over its peers.
Strategic Positioning
Inter Parfums, Inc. maintains a diversified geographic footprint, with significant revenue from Europe (~$404M), North America (~$512M), and Asia (~$192M) as of 2023. Its product portfolio spans multiple luxury fragrance brands, reflecting a concentrated focus within the household and personal products sector.
Revenue by Segment
The pie chart illustrates Inter Parfums, Inc.’s revenue breakdown by segment for the fiscal year 2020. It highlights the contribution of the FranceMember segment within that period.
In 2020, the FranceMember segment generated $37.6M, representing the sole reported revenue stream. This concentration poses a risk as the business relies heavily on one segment. Observing this single-segment dependency, diversification would be crucial to mitigate revenue volatility and sustain growth.
Key Products & Brands
Inter Parfums, Inc. offers a diverse portfolio of fragrance and cosmetic brands globally, including luxury and lifestyle names:
| Product | Description |
|---|---|
| Boucheron | Luxury fragrance brand known for elegant scents and fine jewelry heritage. |
| Coach | Lifestyle brand offering premium fragrances reflecting its fashion-forward identity. |
| Jimmy Choo | High-end fragrance line inspired by sophisticated, glamorous footwear designs. |
| Karl Lagerfeld | Perfume collection embodying the iconic designer’s edgy and modern aesthetic. |
| Kate Spade | Bright, playful fragrances aligned with the brand’s cheerful, stylish image. |
| Lily Aldridge | Celebrity-endorsed fragrance range targeting youthful, trendy consumers. |
| Lanvin | Classic French luxury brand producing refined and timeless perfumes. |
| Moncler | High-performance, luxury fragrance line complementing its premium outerwear reputation. |
| Montblanc | Sophisticated scents inspired by the luxury writing instruments and accessories brand. |
| Rochas | French heritage brand known for elegant and feminine fragrances. |
| S.T. Dupont | Luxury brand offering fragrances with a focus on craftsmanship and refinement. |
| Van Cleef & Arpels | High-jewelry brand with exclusive, luxurious perfume creations. |
| Abercrombie & Fitch | Casual, youthful fragrance line aligned with the brand’s lifestyle image. |
| Anna Sui | Vibrant, eclectic perfumes reflecting the designer’s whimsical style. |
| Babe | Fragrance brand targeting younger demographics with accessible scents. |
| Dunhill | British luxury brand offering classic, masculine fragrances. |
| Ferragamo | Italian luxury brand with elegant, sophisticated perfume offerings. |
| Graff | High-end jewelry brand producing exclusive, luxurious fragrances. |
| GUESS | Fashion brand with trendy, accessible fragrance lines. |
| Hollister | Youth-oriented casual lifestyle brand with fresh, coastal-inspired scents. |
| MCM | Luxury fashion brand with modern, distinctive fragrance products. |
| Oscar de la Renta | Prestigious fashion house producing elegant and romantic perfumes. |
| French Connection | Fashion brand offering stylish and contemporary fragrances. |
| Ungaro | French luxury brand known for sophisticated fragrance compositions. |
| Intimate | Personal fragrance brand under Inter Parfums’ portfolio. |
| Aziza | Niche fragrance line with unique scent profiles. |
Inter Parfums’ portfolio spans luxury, fashion, and lifestyle brands, distributed worldwide through multiple retail channels, emphasizing both heritage and contemporary appeal. This diversification supports resilience in varied market conditions.
Main Competitors
Seventeen competitors operate in the Household & Personal Products industry; here are the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| The Procter & Gamble Company | 331B |
| Unilever PLC | 143B |
| Colgate-Palmolive Company | 62.6B |
| The Estée Lauder Companies Inc. | 38.5B |
| Kimberly-Clark Corporation | 33.7B |
| Kenvue Inc. | 33.2B |
| Church & Dwight Co., Inc. | 20.2B |
| The Clorox Company | 12.3B |
| e.l.f. Beauty, Inc. | 4.3B |
| Inter Parfums, Inc. | 2.7B |
Inter Parfums, Inc. ranks 10th among 17 competitors, with a market cap just 1% the size of Procter & Gamble’s. The company sits below both the average market cap of the top 10 (68.2B) and the sector median (4.3B). It trails its closest rival above by 30.8%, highlighting a notable gap in scale within this competitive group.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does IPAR have a competitive advantage?
Inter Parfums, Inc. shows a mixed competitive profile with favorable gross and net margins but an unfavorable EBIT margin and a declining ROIC trend, limiting clear moat evidence. The absence of ROIC versus WACC data restrains a definitive conclusion on sustainable value creation.
Looking ahead, IPAR’s broad brand portfolio and international presence across Europe, North America, and Asia offer growth avenues. Expansion into emerging markets and new fragrance lines may support future opportunities despite recent margin and profitability challenges.
SWOT Analysis
This SWOT analysis highlights Inter Parfums, Inc.’s core competitive position and strategic challenges.
Strengths
- strong brand portfolio
- favorable net margin at 18.23%
- consistent revenue growth over 5 years
Weaknesses
- zero ROIC and ROE raise concerns
- unfavorable current and quick ratios
- declining EBIT growth
Opportunities
- expanding e-commerce channels
- growing international fragrance markets
- potential to optimize operational efficiencies
Threats
- intense competition in luxury fragrances
- sensitivity to consumer spending cycles
- supply chain disruptions risk
Inter Parfums boasts robust profitability and brand strength but faces operational efficiency and liquidity challenges. Its strategy must balance global expansion with cautious financial discipline to navigate competitive and macroeconomic risks.
Stock Price Action Analysis
The weekly stock chart below illustrates Inter Parfums, Inc.’s price movements over the past 12 months, highlighting key fluctuations and trend shifts:
Trend Analysis
Over the past 12 months, IPAR’s stock price declined by 21.52%, indicating a bearish trend with accelerating downward momentum. The stock’s price ranged between a high of 141.02 and a low of 80.61. Volatility remains elevated, with a 16.6 standard deviation measured over this period.
Volume Analysis
In the last three months, trading volume shows an increasing trend with buyer volume slightly dominant at 58.41%. This buyer-driven activity suggests growing investor interest and improving market participation, contrasting the overall seller dominance recorded over the full year.
Target Prices
Analysts present a confident target consensus for Inter Parfums, Inc., reflecting moderate upside potential.
| Target Low | Target High | Consensus |
|---|---|---|
| 103 | 112 | 107.5 |
The target range suggests steady appreciation, with the consensus price implying roughly 5-10% upside from current levels.
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Analyst & Consumer Opinions
This section reviews analyst grades and consumer feedback to provide a balanced view of Inter Parfums, Inc.’s market perception.
Stock Grades
Here are the latest verified stock grades for Inter Parfums, Inc. from established financial firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BWS Financial | Maintain | Neutral | 2026-01-29 |
| BWS Financial | Downgrade | Neutral | 2025-11-21 |
| Canaccord Genuity | Maintain | Buy | 2025-11-19 |
| Canaccord Genuity | Maintain | Buy | 2025-11-07 |
| Jefferies | Maintain | Buy | 2025-10-28 |
| BWS Financial | Maintain | Buy | 2025-10-22 |
| Canaccord Genuity | Maintain | Buy | 2025-10-21 |
| BWS Financial | Maintain | Buy | 2025-05-07 |
| Piper Sandler | Maintain | Overweight | 2025-04-24 |
| DA Davidson | Maintain | Buy | 2025-03-25 |
The overall trend shows a majority of Buy ratings with a recent shift by BWS Financial to Neutral. This signals mixed analyst sentiment, balancing optimism with caution in the near term.
Consumer Opinions
Consumers express strong enthusiasm for Inter Parfums, Inc.’s product quality and brand prestige. However, some concerns about pricing and availability temper overall sentiment.
| Positive Reviews | Negative Reviews |
|---|---|
| Exceptional fragrance longevity | Premium pricing feels steep |
| Luxurious scent profiles | Limited availability in some regions |
| Consistent product quality | Packaging occasionally damaged |
| Recognizable brand with status appeal | Occasional delays in delivery |
Overall, buyers praise Inter Parfums for its luxury appeal and reliable fragrance performance. Yet, pricing and distribution gaps remain notable drawbacks in consumer feedback.
Risk Analysis
Below is a summary table of key risks facing Inter Parfums, Inc., including their likelihood and potential impact:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Liquidity Risk | Very low current and quick ratios signal tight liquidity. | High | High |
| Profitability Risk | Zero ROE and ROIC indicate struggles generating returns. | Moderate | Moderate |
| Market Volatility | Beta above 1.2 shows sensitivity to market swings. | Moderate | Moderate |
| Debt Servicing | Unfavorable interest coverage could impair debt payments. | Low | High |
| Valuation Risk | P/E favorable but price-to-book unfavorable suggests mixed valuation signals. | Moderate | Moderate |
Inter Parfums’ most critical risks lie in liquidity and profitability. The company’s zero ROE and ROIC warn investors about weak capital efficiency. Liquidity constraints raise red flags in a sector where cash flow timing matters. However, a strong Altman Z-score of 7.1 confirms low bankruptcy risk, providing some comfort amid these challenges.
Should You Buy Inter Parfums, Inc.?
Inter Parfums, Inc. appears to be a profitable company with improving operational efficiency and a manageable leverage profile. While its competitive moat details remain unavailable, the overall B+ rating and safe Altman Z-score suggest a stable financial position, though some valuation metrics appear unfavorable.
Strength & Efficiency Pillars
Inter Parfums, Inc. demonstrates solid profitability with a strong gross margin of 63.64% and a net margin of 18.23%. These margins underscore operational efficiency in a competitive sector. However, key metrics like ROE and ROIC are unavailable or unfavorable, limiting insights into value creation. The Altman Z-Score of 7.09 firmly places the company in the safe zone, alleviating solvency concerns. Despite the absence of ROIC vs. WACC data, the healthy margins suggest operational resilience.
Weaknesses and Drawbacks
The company faces several valuation and liquidity challenges. The price-to-earnings ratio is favorable at 10.04, but other valuation metrics like price-to-book remain unavailable or neutral, creating opacity for investors. Liquidity ratios such as the current and quick ratios score unfavorably, indicating potential short-term cash constraints. Additionally, interest coverage and asset turnover metrics raise concerns about capital efficiency and financial flexibility. The bearish long-term price trend (-21.52%) also signals market skepticism, despite recent buyer dominance.
Our Final Verdict about Inter Parfums, Inc.
Inter Parfums, Inc. presents a fundamentally stable profile with robust profitability and strong solvency, indicated by its Altman Z-Score in the safe zone. However, mixed liquidity and efficiency ratios, combined with a bearish overall price trend, suggest caution. The recent slight buyer dominance and accelerating trend might offer tactical opportunities. Overall, the profile may appear attractive for investors seeking stable margins but warrants a wait-and-see approach for timing and valuation clarity.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- Inter Parfums (NASDAQ:IPAR) Posts Better-Than-Expected Sales In Q4 CY2025 – Finviz (Feb 25, 2026)
- Interparfums, Inc. (NASDAQ:IPAR) Receives Average Rating of “Moderate Buy” from Brokerages – MarketBeat (Feb 25, 2026)
- Interparfums (IPAR) Beats Q4 Earnings and Revenue Estimates – Nasdaq (Feb 25, 2026)
- Interparfums Q4 Earnings Summary & Key Takeaways – Benzinga (Feb 24, 2026)
- Interparfums, Inc. Reports Record 2025 Fourth Quarter and Full Year Results – The Manila Times (Feb 24, 2026)
For more information about Inter Parfums, Inc., please visit the official website: interparfumsinc.com
