Interparfums, Inc. Reports 2025 Second Quarter and Half Year Results

Rhea-AI Summary

Interparfums (NASDAQ: IPAR) reported its Q2 and H1 2025 financial results, with Q2 net sales declining 2% to $334 million and H1 sales growing 1% to $673 million. The company's Q2 diluted EPS decreased 13% to $0.99, while gross margin improved by 170 basis points to 66.2%.

Regional performance was mixed, with North America and Western Europe growing 7% and 3% respectively year-to-date, while Asia-Pacific declined 12%. The company recently signed an exclusive global license agreement with Longchamp, marking their third brand acquisition since December 2024.

Despite challenges from trade destocking and market headwinds, Interparfums reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and diluted EPS of $5.35. The company declared a quarterly dividend of $0.80 per share, payable September 30, 2025.

Positive

• Gross margin expanded 170 bps to 66.2% in Q2 2025
• North America and Western Europe sales grew 7% and 3% respectively YTD
• Operating cash flow improved by $31 million in H1 2025
• Strong financial position with $205 million in cash and equivalents
• Added three new brands to portfolio since December 2024

Negative

• Q2 net sales declined 2% to $334 million
• Q2 net income decreased 13% to $32 million
• Asia-Pacific sales dropped 12% in first half
• Middle East & Africa sales declined 19%
• Higher SG&A expenses as percentage of net sales

Insights

Financial Analyst

Interparfums delivered mixed Q2 results with declining sales but improved margins; reaffirms full-year guidance despite headwinds.

Interparfums reported a somewhat mixed second quarter with net sales declining 2% to $334 million, while gross margin improved 170 basis points to 66.2%. This sales decrease reflects emerging challenges in the global fragrance market, particularly in Asia-Pacific where sales dropped 12% in the first half.

The company's profitability metrics show some pressure points: operating income decreased 9% to $59 million, with operating margin contracting to 17.7% from 18.9% in the year-ago quarter. This margin compression stems primarily from increased SG&A expenses, particularly higher advertising and promotional spending which represented 20.6% of sales versus 19.4% last year.

Diluted EPS fell 13% to $0.99, affected by both operational factors and below-the-line items including $2.4 million in foreign currency losses and $3.4 million in marketable securities losses.

Regional performance shows a bifurcated market. North America and Western Europe remain strong with YTD growth of 7% and 3% respectively, while the Middle East & Africa declined 19% due to the Dunhill license exit and regional conflicts. Trade destocking continues to pressure reported sales despite healthy end consumer demand.

The company's balance sheet remains robust with $205 million in cash and short-term investments. Management has maintained full-year guidance of $1.51 billion in sales and $5.35 EPS, suggesting confidence in stronger second-half performance driven by pricing actions, upcoming launches, and favorable currency impacts.

The declaration of a $0.80 quarterly dividend signals ongoing commitment to shareholder returns despite near-term headwinds from tariffs and moderating international demand.

Reaffirms 2025 Sales and Earnings Guidance

NEW YORK, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) today reported results for the second quarter and six months ended June 30, 2025.

Financial Highlights: ($ in millions, except per share amounts)	Three Months Ended June 30,								Six Months Ended June 30,
		2025			2024		% Change			2025			2024		% Change
Net Sales		$334			$342		(2%)			$673			$666		+1%
Gross Margin		66.2%			64.5%		+170 bps			65.0%			63.5%		+150 bps
Operating Income		$59			$65		(9%)			$134			$133		+1%
Operating Margin		17.7%			18.9%		(120) bps			20.0%			19.9%		+10 bps
Net Income attributable to Interparfums, Inc.		$32			$37		(13%)			$74			$78		(4%)
Diluted EPS		$0.99			$1.14		(13%)			$2.32			$2.41		(4%)
The average dollar/euro exchange rate for the 2025 second quarter was 1.13 compared to 1.08 in the 2024 second quarter, while for the first six months of 2025, the average dollar/euro exchange rate was 1.09 compared to 1.08 in the first six months of 2024, leading to a positive 2.0% and 0.4% foreign exchange impact on net sales for the second quarter and first six months of 2025, respectively.

Operational Commentary
Jean Madar, Chairman & Chief Executive Officer of Interparfums, noted, “Demand in the United States, which accounted for 35% of our second quarter net sales, remains strong, even as growth in the global fragrance market has begun to ease off. We are confident in our ability to navigate this environment thanks to the strength of our brand portfolio and our global network of distributors and retail partners, which give us access to a wide range of consumers across markets. While second quarter results were affected, and we anticipate that some of these headwinds will persist into the second half of the year, our proactive and timely actions position us to fully resolve these challenges in 2026.

“Our two largest markets, North America and Western Europe, grew sales by 7% and 3% on a year-to-date basis. Asia-Pacific fragrance sales were down 12% for the first half, with the decline primarily due to last year’s exceptional sales in Australia and distribution disruptions in South Korea in the current year while the overall trend remains positive in China and Japan.

“Central & South America sales increased 7% during the first six months, propelled by the strong performance of Lacoste fragrances and healthy market growth. Sales in Eastern Europe were up 14% as compared to the first half of 2024, where we faced temporary sourcing constraints. The Middle East & Africa declined 19%, primarily due to a disproportionate impact from the exit of the Dunhill license; excluding the impact of Dunhill, net sales declined 6% due to conflict in the region and as more doors focused on higher end luxury fragrances.

“As announced last month, we signed an exclusive global license agreement with Longchamp, further strengthening our portfolio. This marks the third new brand we have added to our portfolio since December 2024, preceded by Off-White and Goutal. Additionally, our first owned brand fragrance collection, Solférino, remains on track with a highly selective distribution and elevated merchandising strategy as we prepare to open our flagship Paris boutique next month.

Mr. Madar concluded, “As always, we remain committed to investing in our brands and capabilities while maintaining the flexibility to adapt to evolving market conditions. Although the imposition of tariffs and a dynamic market environment may present near-term challenges due to trade destocking, our recent pricing strategies, upcoming fragrance launches, and foreign exchange tailwinds are expected to be the catalysts in driving stronger results in the second half of 2025 leading to continued market share gains.”

Financial Commentary
Michel Atwood, Chief Financial Officer of Interparfums, noted, “Consolidated gross margin expanded 170 bps to 66.2% and 150 bps to 65.0% in the second quarter and first half of 2025, respectively, as a result of favorable segment and brand mix.

“SG&A expenses as a percentage of net sales were 48.5% and 45.0% for the second quarter and first half of 2025 as compared to 45.6% and 43.6% for the comparable periods in 2024, attributable to higher levels of advertising and promotional expenditures in 2025. These expenditures represented 20.6% and 17.9% of net sales for the second quarter and first half of 2025, compared to 19.4% and 17.2% for the respective periods of the prior year.

“The key metrics mentioned resulted in operating margins aggregating 17.7% and 20.0% for the second quarter and first half of 2025, respectively, as compared to 18.9% and 19.9% for the corresponding periods of 2024.

“Below the operating line, first half net income was unfavorably impacted by other expenses of $6.7 million compared to $1.5 million in last year’s first half. Through June 30, 2025, we recorded $2.4 million in losses on foreign currency and a $3.4 million loss on marketable securities, while in the same period last year, there was a foreign currency gain of $0.3 million and a loss of $0.6 million on marketable securities.

“These factors contributed to our second quarter net income of $32 million, or $0.99 per diluted share.

“Our financial position remains healthy with $205 million in cash, cash equivalents and short-term investments, and working capital of $654 million. In the first half of 2025, we improved our operating cash flow by $31 million compared to the same period last year, shifting from $26 million of cash consumption to $5 million of cash generation as our inventory initiatives began to deliver results.”

Reaffirms 2025 Guidance

Mr. Atwood concluded, “Despite healthy sellout in the first half driven by the strength of our portfolio and disciplined execution, our sales were slightly below expectations due to continued trade destocking. As we look ahead to the second half, we remain mindful of the ongoing macroeconomic uncertainty, including tariff-related supply chain impacts, moderating demand in several international markets outside the United States, and continued volatility of the EUR/USD exchange rate.

“Nevertheless, we are cautiously optimistic in our ability to achieve the full year objectives we initially laid out in November 2024, supported by the continued resilience of the fragrance category, tariff induced second half pricing actions, and continuing foreign exchange tailwinds. As such, we are reaffirming our 2025 guidance, which calls for net sales of $1.51 billion and earnings per diluted share of $5.35.”

Dividend
The Company’s regular quarterly cash dividend of $0.80 per share will be paid on September 30, 2025, to shareholders of record on September 15, 2025.

Conference Call
Management will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Wednesday, August 6, 2025.

Interested parties may participate in the live call by dialing:

U.S. / Toll-free:      (877) 423-9820
International:        (201) 493-6749

Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin.

A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.

About Interparfums, Inc.:
Operating in the global fragrance business since 1982, Interparfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance related products under license and other agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy.

Our portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Longchamp, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Interparfums, Inc. is also the registered owner of several trademarks including Lanvin, Rochas, and Solférino. Goutal and Off-White will join the Company’s fragrance portfolio in 2026.

Forward-Looking Statements
Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as "anticipate, "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in Interparfums' annual report on Form 10-K for the fiscal year ended December 31, 2024, and the reports Interparfums files from time to time with the Securities and Exchange Commission. Interparfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact Information:

Interparfums, Inc. Michel Atwood Chief Financial Officer (212) 983-2640 www.interparfumsinc.com

or

The Equity Group Inc. Karin Daly Investor Relations Counsel (212) 836-9623 / kdaly@theequitygroup.com www.theequitygroup.com

See Accompanying Tables
INTERPARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data) (Unaudited)
ASSETS
		June 30, 2025					December 31, 2024
Current assets:
Cash and cash equivalents		$	151,454				$	125,433
Short-term investments			53,901					109,311
Accounts receivable, net			296,043					274,705
Inventories			425,349					371,920
Receivables, other			8,133					6,122
Other current assets			50,083					27,035
Income taxes receivable			2,024					306
Total current assets			986,987					914,832
Property, equipment and leasehold improvements, net			185,356					153,773
Right-of-use assets, net			23,328					24,603
Trademarks, licenses and other intangible assets, net			333,353					282,484
Deferred tax assets			12,618					17,034
Other assets			20,106					18,535
Total assets		$	1,561,748				$	1,411,261
LIABILITIES AND EQUITY
Current liabilities:
Loans payable - banks		$	44,536				$	8,311
Current portion of long-term debt			56,745					41,607
Current portion of lease liabilities			6,250					6,087
Accounts payable – trade			93,146					91,049
Accrued expenses			126,753					172,758
Income taxes payable			5,571					12,615
Total current liabilities			333,001					332,427
Long–term debt, less current portion			153,112					115,734
Lease liabilities, less current portion			18,883					20,455
Equity:
Interparfums, Inc. shareholders’ equity:
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued			—					—
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 32,117,600 and 32,110,170 shares at June 30, 2025 and December 31, 2024, respectively			32					32
Additional paid-in capital			108,802					106,702
Retained earnings			787,031					763,240
Accumulated other comprehensive loss			(1,599	)				(72,239	)
Treasury stock, at cost, 10,001,665 and 9,981,665 shares at June 30, 2025 and December 31, 2024, respectively			(54,907	)				(52,864	)
Total Interparfums, Inc. shareholders’ equity			839,359					744,871
Noncontrolling interest			217,393					197,774
Total equity			1,056,752					942,645
Total liabilities and equity		$	1,561,748				$	1,411,261

 

INTERPARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data) (Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2025				2024			2025					2024
Net sales		$	333,936			$	342,229		$	672,755				$	666,192
Cost of sales			112,847				121,472			235,689					243,050
Gross margin			221,089				220,757			437,066					423,142
Selling, general and administrative expenses			161,913				155,929			302,813					290,341
Income from operations			59,176				64,828			134,253					132,801
Other expenses (income):
Interest expense			1,787				1,941			3,332					3,748
Loss (gain) on foreign currency			1,580				634			2,360					(270	)
Interest and investment loss (income)			1,929				1,076			1,349					(1,944	)
Other income			(245	)			(74	)		(324	)				(37	)
			5,051				3,577			6,717					1,497
Income before income taxes			54,125				61,251			127,536					131,304
Income taxes			12,928				14,653			30,936					31,403
Net income			41,197				46,598			96,600					99,901
Less: Net income attributable to the noncontrolling interest			9,209				9,775			22,120					22,030
Net income attributable to Interparfums, Inc.		$	31,988			$	36,823		$	74,480				$	77,871
Earnings per share:
Net income attributable to Interparfums, Inc. common shareholders:
Basic		$	1.00			$	1.15		$	2.32				$	2.43
Diluted		$	0.99			$	1.14		$	2.32				$	2.41
Weighted average number of shares outstanding:
Basic			32,110				32,024			32,115					32,033
Diluted			32,149				32,266			32,162					32,266
Dividends declared per share		$	0.80			$	0.75		$	1.60				$	1.50

FAQ

What were Interparfums (IPAR) Q2 2025 earnings results?

Interparfums reported Q2 2025 net sales of $334 million (down 2%) with diluted EPS of $0.99 (down 13%). Gross margin improved to 66.2%, up 170 basis points year-over-year.

What is Interparfums' (IPAR) guidance for 2025?

Interparfums reaffirmed its 2025 guidance, expecting net sales of $1.51 billion and earnings per diluted share of $5.35.

How much is IPAR's dividend payment for Q2 2025?

Interparfums declared a quarterly cash dividend of $0.80 per share, payable on September 30, 2025, to shareholders of record on September 15, 2025.

Which regions showed growth for Interparfums in H1 2025?

North America grew 7%, Western Europe increased 3%, Central & South America rose 7%, and Eastern Europe was up 14% compared to H1 2024.

What new brand licenses did Interparfums acquire recently?

Interparfums recently signed an exclusive global license with Longchamp, which follows the addition of Off-White and Goutal since December 2024.