Inter Parfums (IPAR) Partners With G-III Apparel to Fuel Growth
Inter Parfums, Inc. IPAR is focused on driving growth through license deals with different brands. Moving on these lines, the company concluded its agreement with G-III Apparel Group, Ltd. GIII — to become the exclusive worldwide licensee for the Donna Karan and DKNY fragrance brands, effective Jul 1, 2022.
We note that G-III Apparel designs, sources and markets apparel and accessories under owned, licensed and private label brands. GIII continuously strengthens its power brands through innovations, partnerships and licensing agreements. G-III Apparel has been accelerating its digital growth and strives to become the best omni-channel organization.
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Meanwhile, per the agreement announced in October last year, Inter Parfums has already started developing strategic advancements and product lines under these brands. Management expects to roll out new fragrances under these brands in 2023.
Inter Parfums highlighted that it is optimistic about the partnership with well-established fragrance brands like Donna Karan and DKNY. We note that Donna Karan Cashmere Mist boasts a solid brand heritage, which has consistently been ranked as a Top 25 fragrance in the United States. Further, the Cashmere Mist deodorant is the number one luxury fragrance selling body product across the United States and Canada. DKNY Be Delicious has placed itself as a blockbuster globally since its launch in 2004.
Strategic Partnerships Hold Key to Growth
Inter Parfums is on track to expand its business through new licenses or acquisitions. In December 2021, Inter Parfums, through its subsidiary Interparfums Italia, signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. The partnership aims to create, develop and distribute fragrances and fragrance-related products under the Emanuel Ungaro brand. In October 2021, Inter Parfums finalized the agreement with Salvatore Ferragamo S.p.A. Per the agreement, Inter Parfums now holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.
The company has been gaining on its strategic partnerships with Origines-parfums and Moncler SpA. In July 2020, Inter Parfums’ majorly owned subsidiary, Interparfums SA, acquired 25% of Divabox’s capital. Notably, Divabox is the owner of Origines-parfums, which is a renowned French company in the online beauty market. The deal will enhance Inter Parfums’ fragrance line and product range alongside pushing its digital development, courtesy of Origines-parfums’ solid customer expertise. Prior to this, Interparfums SA signed an agreement with renowned luxury brand Moncler SpA in June 2020. The deal gave Inter Parfums rights to fragrance-related items in Moncler mono-brand stores along with a few other specialty shops, department stores and duty-free shops.
The aforementioned deal with G-III Apparel is likely to add another leaf to IPAR’s growth story.
The Zacks Rank #3 (Hold) company’s stock has gained 3.2% in the past year against the industry’s 42.4% decline.
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