Inter Parfums (IPAR) Stock Forecast & Price Target

Interparfums Inc is poised for strong sales growth, with expectations for a 4% increase in 2025, bolstered by successful investments in brands like Donna Karan and Lacoste, which are anticipated to yield further positive results in 2026. The company's organic sales growth estimates for 2025 show a progressive increase throughout the year, culminating in a forecast of 6.5% growth, driven by significant gains in both its European and U.S. divisions, which reported year-over-year sales increases of 6% and 16%, respectively. Moreover, the strategic focus on the Coach brand, contributing to mid-single-digit growth expectations and a strong selling-through performance, underlines Interparfums's solid market positioning and potential for future profitability.

Interparfums Inc reported an operating profit growth of 173% year-over-year, reaching $40.7 million, though it fell short of market expectations. The company anticipates a sales growth of only 4% year-over-year, with external factors such as foreign exchange rates expected to further constrain sales in 2025 and a projected flat organic sales outlook for the upcoming quarters. Additionally, the reliance on licensing agreements presents a notable risk, as the loss of any key licenses could significantly impact profits, alongside concerns over global economic conditions potentially stifling consumer spending and discretionary income.