Inter Parfums (IPAR) Stock Forecast & Price Target

Interparfums Inc has demonstrated strong performance in its fragrance business, particularly with brands such as Jimmy Choo, which recorded a notable sales increase of 16%, positioning itself to reach $100 million in sales this year. The company’s European-based operations achieved a year-over-year sales growth of 5%, complementing a substantial 21% growth from the previous year, indicating robust demand and brand expansion in this segment. Additionally, the overall sales projections for fiscal year 2026 have improved from 3.5% to 3.7% year-over-year growth, reflecting positive management sentiment and operational momentum despite challenges in 4Q sales expectations.

Interparfums Inc. is experiencing a decline in sales for its key brands, with the U.S. operations reporting a 6% year-over-year decrease, which worsens to 5% when excluding the impact of exiting the Dunhill license. Additionally, significant drops in brand performance are evident, particularly with the Donna Karan/DKNY brand experiencing a 14% decline and Montblanc's sales down by 6%. The company faces potential margin pressures from ongoing cost inflation and risks related to brand license renewals, which collectively contribute to a negative outlook on its stock performance.