Inter Parfums Shares Struggle Amid Institutional Sell-Off and Weak Price Action

The equity of fragrance maker Inter Parfums continues to face significant headwinds. With its stock price hovering perilously close to an annual low, a notable retreat by major investors is adding pressure. This persistent weakness unfolds even as research analysts point to substantial potential for future gains, creating a complex narrative for the company.

The company's latest financial update for Q3 revealed a split performance that likely explains current market sentiment:
* Earnings Beat: Adjusted earnings per share (EPS) came in at $2.05, comfortably surpassing the analyst consensus estimate of $1.89.
* Revenue Miss: Quarterly revenue of $429.6 million, however, fell slightly short of the expected $431.8 million.
* Guidance Maintained: Management reaffirmed its full-year 2025 EPS forecast of $5.12.

This divergence highlights operational resilience in profitability but suggests some softening in top-line growth, a key factor likely keeping investors on the sidelines.

Major Investor Scales Back Position

Adding to the downward momentum, institutional confidence appears to be waning. Granite Investment Partners LLC notably reduced its stake during the second quarter of 2025. The investment firm sold 12,724 shares, cutting its holding by 8.9%. This move signals a more defensive posture from a significant holder. Despite this reduction, Granite Investment Partners retains a substantial position of 130,326 shares, valued at approximately $17.1 million.

Should investors sell immediately? Or is it worth buying Inter Parfums?

Technical Picture Shows Deep Declines

From a chart perspective, the situation remains challenging. At the market open on December 3, the stock was trading at $80.83. This level places it worryingly close to its 52-week low of $77.21 and stands in stark contrast to its yearly peak of $148.15. Measured from that high, the share price has shed nearly half of its value, with the prevailing downtrend showing few clear signs of finding a sustainable bottom.

Analysts Identify Significant Upside Potential

Contrasting the negative price action and institutional selling, market observers maintain a constructive long-term view. The current average analyst price target sits at $121.00. Based on a trading level around $80, this implies a potential upside of roughly 50%. The consensus rating remains "Moderate Buy." Analysts suggest that realizing this potential is contingent on the company stabilizing its revenue trajectory and rebuilding investor confidence.

The path forward is expected to hinge critically on sales performance in upcoming quarters. A potential positive catalyst may emerge from the retail sector: the crucial department store channel, a key distribution partner, is demonstrating renewed resilience. This is evidenced by recent results from competitors like Macy's, which reported a surprise profit and its strongest sales growth in over three years.