The analyst said that the strong performance was driven by both divisions, with European operations +19% and U.S. operations +42%.

The analyst noted that sales in the company's three largest markets, North America, Western Europe, and Asia Pacific, were +25%, +26%, and +17%, respectively.

The company is seeing travel retail pick up in line with the resumption of international travel, the analyst noted

The analyst added that IPAR’s licensing agreement with luxury fashion house Roberto Cavalli will possibly rake in an estimated sales of about $40 million.

The company raised the FY23 EPS guidance to $4.55 from $4.25 and maintained its sales guidance of $1.30 billion.

The analyst expects gross margin to be down in 2H23 due to stronger euro, mix (higher U.S. division sales), more holiday gift sets vs. last year when there were supply issues, and the flow into the income statement of older, higher cost inventory. 

Price Action: IPAR shares are trading higher by 0.81% at $136.06 on the last check Thursday.