Feather Fund has published a bullish investment thesis on Interparfums, Inc. (IPAR) on its Substack platform. The company's share price was $87.79 as of January 13th. According to Yahoo Finance data, its trailing P/E ratio was 17.11 and its forward P/E ratio was 18.35.
Inter Parfums, Inc. operates in the prestige fragrance sector using a licensing-focused model. It does not own manufacturing assets but manages fragrance creation, marketing, and distribution under long-term licenses with fashion houses.
In the first half of 2025, the company reported a gross margin expansion to 66.2%. This performance occurred despite uneven consumer demand patterns. The firm has a dual operating structure with U.S. operations under Inter Parfums, Inc. and European operations through its majority-owned subsidiary Interparfums SA.
Management has reaffirmed its financial guidance for the full 2025 fiscal year. The company maintains a strong cash position and continues to invest in marketing, digital distribution, and product innovation.
Key risks identified include brand concentration, with approximately 73% of sales coming from six major licenses. Foreign exchange exposure is another concern due to Europe's contribution to revenue. Recent volatility in the Asia-Pacific market was also noted.
To mitigate these risks, the company utilizes ultra-long license agreements, such as one with Longchamp extending to 2036. It is also developing proprietary brands like Solférino, which do not require royalty payments.
Feather Fund's analysis draws parallels to a previous bullish thesis on The Estée Lauder Companies Inc. published by D Invests in February 2025. Since that coverage, Estée Lauder's stock price has appreciated by approximately 67.95%.
According to database information, 28 hedge fund portfolios held Interparfums stock at the end of the third quarter, an increase from 20 funds in the previous quarter. The company is not included on a list of the 30 Most Popular Stocks Among Hedge Funds.