As of press time, perfume was expected to be the top-performing beauty category during the holidays, according to research company The NPD Group, but only the most expensive brands might smell good to investors in 2016.
An influx of high-end fragrances at discount retailers plagued the market because of poor merchandising, among other things, according to Linda Bolton Weiser at investment bank B. Riley. Consequently, investors should look to elite fragrances if they want to end up smelling like a rose. Inter Parfums (NASDAQ: IPAR; Price: $25.69) stands out in 2016, because Weiser says it will launch fragrance lines and it expects increasing revenue and profit.
Inter Parfums has a mean analyst rating of “Buy,” according to Zacks Investment Research.