Interparfums Q4 Earnings Beat Estimates, Sales Rise Y/Y

Bath & Body Works, Inc. BBWI is set to report fourth-quarter fiscal 2024 earnings on Feb. 27, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $2.77 billion, which indicates a decline of 4.8% from the prior-year reported figure. The consensus mark for the bottom line has increased by a penny in the past 30 days and is pegged at $2.04, which indicates a decline from $2.06 reported in the year-ago period. Bath & Body Works delivered a trailing four-quarter earnings surprise of 9.7%, on average.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Bath & Body Works, Inc. Price, Consensus and EPS Surprise

Bath & Body Works, Inc. price-consensus-eps-surprise-chart | Bath & Body Works, Inc. Quote

Factors to Consider Ahead of BBWI’s Upcoming Results

Bath & Body Works has been navigating a challenging fiscal comparison due to the calendar shift, which includes the loss of the 53rd week and five fewer shopping days between Thanksgiving and Christmas than the prior year. These factors are likely to have hurt net sales, which are expected to have fallen 4.5-6.5% year over year in the fourth quarter, with a 500-basis-point headwind from the shifted fiscal calendar. As a result, earnings per share are expected to be between $1.94 and $2.07.

At the same time, the company has been battling rising selling, general and administrative (SG&A) expenses. In the third quarter, general, administrative and store operating expenses rose 4.6% to $482 million, with SG&A expenses, as a percentage of net sales, increasing 100 basis points year over year, due to elevated marketing investments. For the fourth quarter, management guided a jump of 40 basis points in SG&A expenses, as a percentage of net sales, primarily due to continued investments in loyalty programs and digital initiatives, which are likely to have weighed on the bottom line.

While the aforementioned factors do raise concern about the outcome, Bath & Body Works has been seeing growth in its core product categories, Body Care, Home Fragrance and Soaps & Sanitizers. Each category posted low-single-digit year-over-year growth in the third quarter, supported by strategic marketing and innovative product launches. New seasonal fragrances and giftable items might have further boosted sales, while the Everyday Luxuries collection, which resonated well with younger consumers, is likely to have maintained its momentum into the fourth quarter.

BBWI has been focused on operational efficiency through its "fuel-for-growth" program, which is expected to have generated $150 million in cost savings in fiscal 2024, exceeding initial estimations. In the third quarter alone, the company achieved $35 million in cost benefits, bringing total savings over the past two years to $300 million. These disciplined cost management efforts are likely to have helped mitigate bottom-line pressure and supported profitability as the company enters the final quarter of the year.

What Does the Zacks Model Unveil for BBWI?

Our proven model predicts an earnings beat for Bath & Body Works this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Bath & Body Works has an Earnings ESP of +1.72% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With the Favorable Combination

Here are some other companies that, too, according to our model have the right combination of elements to beat on earnings this reporting cycle.

DICK'S Sporting Goods, Inc. DKS currently has an Earnings ESP of +0.98% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

DKS' top line is anticipated to have decreased year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, which indicates a 3.3% decrease from the figure reported in the year-ago quarter.

The company is expected to register a decline in the bottom line. The consensus estimate for DICK'S Sporting Goods’ fourth-quarter earnings is pegged at $3.47 per share, down 9.9% from the year-ago quarter. DKS delivered a trailing four-quarter earnings surprise of 11.4%, on average.

Ulta Beauty, Inc. ULTA has an Earnings ESP of +1.22% and a Zacks Rank of 2 at present. ULTA is likely to have registered a top-line decline when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.46 billion, which indicates a 2.6% decline from the figure reported in the year-ago quarter.

The consensus estimate for Ulta Beauty’s fourth-quarter earnings is pegged at $7.09 per share, which calls for a 12.3% decline from the figure reported in the year-ago quarter. ULTA delivered an earnings beat of 6.2%, on average, in the trailing four quarters.

Tractor Supply Company TSCO currently has an Earnings ESP of +0.08% and a Zacks Rank of 3. TSCO's top line is anticipated to have increased year over year when it reports first-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.56 billion, which indicates a 4.8% jump from the figure reported in the year-ago quarter.

The company is expected to report in-line bottom-line results. The consensus estimate for Tractor Supply Company’s first-quarter earnings is pegged at 37 cents per share. TSCO delivered a trailing four-quarter earnings surprise of 1.4%, on average.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Inter Parfums, Inc. IPAR is likely to register bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 25. Although the Zacks Consensus Estimate for quarterly earnings has moved down a penny in the past 30 days to 80 cents per share, the projection indicates an increase from 32 cents reported in the year-ago quarter.

The consensus mark for 2024 earnings is pegged at $5.14 per share, suggesting an 8.2% increase from the previous year’s reported figure. IPAR has a trailing four-quarter negative earnings surprise of 3.8%, on average.

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Things to Know About IPAR’s Upcoming Results

Inter Parfums is experiencing growth driven by increasing demand for its products and a robust brand portfolio. A strategic focus on innovation and product launches has been helping the company stay firm amid a dynamic, competitive and growing marketplace. An expanding e-commerce presence has been yielding. The continuation of these trends bodes well for the to-be-reported quarter’s performance. Management expects earnings per share (EPS) of $5.15 for full-year 2024.

Despite the global fragrance market's continued vibrancy and robust demand, the company’s sell-in has been slower than its sell-out, with retailers adopting a leaner inventory approach. While this is partly due to industry-wide destocking, the lag in sell-in could indicate weakening demand momentum. The persistence of this trend poses a risk to the company’s fourth-quarter results.

Interparfums, Inc. Price and EPS Surprise

Interparfums, Inc. price-eps-surprise | Interparfums, Inc. Quote

A Look at IPAR’s Sales Numbers

Inter Parfums recently came out with its sales results for the fourth quarter and 2024, highlighting strong performance driven by the strength of its brands. For the fourth quarter of 2024, Interparfums achieved a 10% increase in net sales, reaching $362 million. On a full-year basis, too, net sales rose 10% to $1.452 billion.

The company saw solid growth, driven by strong demand for its key brands. GUESS, its top-performing U.S.-based brand, delivered impressive results. IPAR's top six brands, which account for about 70% of net sales, experienced a 5% increase in the fourth quarter and a 4% rise for the full year. The newer additions, Lacoste and Roberto Cavalli made significant contributions to sales, accounting for 8% of quarterly sales improvement and 9% of full-year growth.

Europe-based net sales were $214 million in the fourth quarter, a 6% increase from the prior period, and reached $953 million for the full year, up 10% from 2023. This growth was driven by the strong performance of Jimmy Choo, the addition of Lacoste and effective execution across smaller brands. Interparfums saw a notable 11% increase in sales for Jimmy Choo during the fourth quarter and 7% for the full year. The company’s newest European brand, Lacoste, surpassed expectations, achieving $85 million in sales during its first year.

In the fourth quarter of 2024, Interparfums’ U.S.-based net sales reached $149 million, indicating a robust 16% year-over-year increase. For the full year, U.S.-based net sales rose 12% to $511 million from the prior year. This growth was fueled by strong performances from GUESS, Donna Karan/DKNY and the addition of Roberto Cavalli.

Earnings Whispers for IPAR Stock

Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Inter Parfums carries a Zacks Rank #2 and has an Earnings ESP of -2.64%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

General Mills GIS currently has an Earnings ESP of +7.77% and a Zacks Rank #3. GIS is anticipated to register a decline in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for General Mills’ quarterly revenues is pegged at $5.1 billion, indicating a decline of 0.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for General Mills’ bottom line has been stable in the past seven days at $1.03 per share. The consensus estimate for GIS suggests a decline of 12% from the year-ago quarter’s reported figure. GIS has delivered an earnings beat of 7.8%, on average, in the trailing four quarters.

Freshpet, Inc. FRPT currently has an Earnings ESP of +14.67% and a Zacks Rank #2. FRPT is scheduled to report quarterly earnings on Feb. 20.

The Zacks Consensus Estimate for FRPT’s to-be-reported quarter’s earnings and revenues is pegged at 44 cents per share and $263.5 million, respectively. Shares of FRPT have gained 46.3% in the past year.

Grocery Outlet Holding GO currently has an Earnings ESP of +1.32% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share is pegged at 17 cents, down 5.6% from the year-ago period.

Grocery Outlet's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.09 billion, which suggests an increase of 9.7% from the prior-year quarter. GO has a trailing four-quarter negative earnings surprise of 2.2%, on average.

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