Interparfums, Inc. Reports 2025 Third Quarter Results

Rhea-AI Summary

Interparfums (NASDAQ: IPAR) reported Q3 2025 and nine-month results on Nov 5, 2025, with Q3 net sales of $430M (+1% YoY) and diluted EPS of $2.05 (+6% YoY). Nine-month net sales were $1,102M (+1%) and diluted EPS was $4.36. Currency helped results, contributing +2% in Q3 and +1% for nine months. Regional performance was mixed: Central & South America +12%, North America +4% YTD, Western Europe +3% YTD, while Middle East & Africa declined 16%. Operating cash flow improved to $68M for nine months. Full-year 2025 guidance was updated to $1.47B sales (+1% YoY) and $5.12 EPS (flat vs. 2024).

Positive

• Central and South America sales +12% year-to-date
• Operating cash flow +36% to $68 million for first nine months
• Full-year 2025 guidance: $1.47 billion sales (up 1% YoY)

Negative

• Middle East and Africa sales -16% year-to-date
• Full-year 2025 diluted EPS guidance flat at $5.12 versus 2024

Insights

Senior Financial Analyst

Modest operational resilience: slight revenue and EPS growth, guidance trimmed to flat EPS; monitor Q4 sales and upcoming 2026 guidance.

Interparfums reported third-quarter net sales of $430 million, up 1% year-over-year, and third-quarter diluted EPS of $2.05, up 6%. For the first nine months, net sales reached $1,102 million, up 1%, with diluted EPS of $4.36. Management cited a positive foreign-exchange impact and higher tariffs affecting gross margin in the quarter; consolidated gross margin was 63.5% for the quarter and 64.4% for nine months.

Regional performance shows strength in North America (+4%) and Western Europe (+3%), offset by weakness in Asia/Pacific (down 9%) and a 16% decline in Middle East and Africa largely due to the Dunhill license run-off. Liquidity and cash generation remain solid with $188 million in cash and $68 million in operating cash flow year-to-date.

Dependencies and near-term risks include tariff pressure on U.S. imports, foreign-currency losses ($4.6 million recorded YTD), and the pace of holiday sell-through. The company adjusted full-year 2025 guidance to expected sales of $1.47 billion (up 1% year-over-year) and diluted EPS of $5.12 (flat vs. 2024), signaling cautious outlook despite brand investments.

Watch for the initial full-year 2026 guidance release on November 18, 2025, Q4 sell-through versus promotional investment, and the conference call on November 6, 2025. The regular quarterly dividend of $0.80 per share will be paid on December 31, 2025 to holders of record on December 15, 2025. Time horizon: immediate (Q4 performance and Nov 18 guidance) and short-term (holiday season outcomes).

FY2025 Guidance Refined to Reflect Market Dynamics

NEW YORK, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) today reported results for the third quarter and nine months ended September 30, 2025.

Financial Highlights: ($ in millions, except per share amounts)	Three Months Ended September 30,			Nine Months Ended September 30,
	2025	2024	% Change	2025	2024	% Change
Net Sales	$430	$425	+1%	$1,102	$1,091	+1%
Gross Margin	63.5%	63.9%	(40) bps	64.4%	63.6%	+80 bps
Operating Income	$109	$106	+2%	$243	$239	+2%
Operating Margin	25.3%	25.0%	+30 bps	22.0%	21.9%	+10 bps
Net Income attributable to Interparfums, Inc.	$66	$62	+6%	$140	$140	--
Diluted EPS	$2.05	$1.93	+6%	$4.36	$4.34	+0.5%
The average dollar/euro exchange rate for the 2025 third quarter was 1.17 compared to 1.10 in the 2024 third quarter leading to a positive 2% foreign exchange impact. For the first nine months of 2025, the average dollar/euro exchange rate was 1.12 compared to 1.09 in the first nine months of 2024, leading to a positive 1% foreign exchange impact.

Operational Commentary
Jean Madar, Chairman & Chief Executive Officer of Interparfums, noted, “While the prestige and luxury fragrance category continues to perform well, broader macroeconomic factors, including retailer destocking, evolving consumer behavior, and tariff-related disruptions, moderated our topline growth. We remain confident that our strong innovation pipeline, supported by rigorous advertising and promotion programs, and ongoing portfolio evolution, will maintain sales momentum in the coming months and into 2026.

“Our two largest markets, North America and Western Europe, grew sales by 4% and 3%, respectively, on a year-to-date basis. Sales in Asia/Pacific were down 9%, due to distribution challenges in South Korea and India.

“With fragrance leading the beauty category in Central and South America, our sales increased 12% through the first nine months, fueled by the strength of Lacoste and Coach fragrance sales. Sales in Eastern Europe rose 6% compared with the first nine months of 2024, reflecting more normalized sales levels as last year’s period was affected by sourcing constraints. The Middle East and Africa declined 16%, primarily due to the run-off of the Dunhill license, which was completed in August 2024. Excluding the impact of Dunhill, net sales in the Middle East and Africa declined 7%, as a result of ongoing conflict in the region and a smaller pool of prestige fragrance retailers.”

Mr. Madar concluded, “Despite the slowing sales, we continue to invest in our brands to maximize engagement both in-store and online, leveraging the reach and performance across our e-commerce channels. We’re positioned to capture sales in the final three months of the year as healthy consumer demand accelerates during the holiday gifting season, driven by differentiated product offerings, targeted marketing initiatives, and increased brand visibility.”

Financial Commentary
Michel Atwood, Chief Financial Officer of Interparfums, noted, “For the first nine months of 2025, consolidated gross margin rose 80 basis points to 64.4%, driven by a favorable segment and brand mix in the nine months of the year. In the third quarter, however, it declined marginally by 40 basis points to 63.5% as favorable segment/channel/brand mix and pricing were not sufficient to fully offset the higher tariffs on our United States imports.

“SG&A expenses as a percentage of net sales were 38.2% and 42.4%, respectively, for the third quarter and first nine months of 2025 as compared to 38.9% and 41.8%, for the comparable periods in 2024, attributable to the phasing of advertising and promotional activities. These expenditures represented 15.3% and 16.9% of net sales for the third quarter and first nine months of 2025, compared to 15.7% and 16.6% for the respective periods of the prior year as we continue to invest in advertising and promotional activities ahead of our growth and in line with our expected sell-out.

“The key metrics mentioned resulted in operating margins of 25.3% and 22.0% for the third quarter and first nine months of 2025, respectively, as compared to 25.0% and 21.9% for the corresponding periods of 2024.

“Below the operating line, net income reflected other expenses of $7.7 million during the first nine months of 2025, compared to $7.1 million in the same period last year. Through September 30, 2025, we recorded $4.6 million in losses on foreign currency and a $2.5 million loss on marketable securities, while in the same period last year, there was a foreign currency loss of $3.1 million and a loss of $0.8 million on marketable securities.

“Our consolidated effective tax rate was 23.5% and 23.7% for the nine months ended September 30, 2025 and 2024, respectively as we benefited from a favorable net tax gain of $2 million in the third quarter following a positive outcome from prior year tax assessments.

“These factors contributed to our third quarter net income attributable to Interparfums, Inc. of $66 million, or $2.05 per diluted share, a 6% improvement over last year’s third quarter. For the first nine months, net income was unchanged at $140 million, but up slightly on a diluted per share basis to $4.36.

“Our financial position remains healthy with $188 million in cash, cash equivalents and short-term investments, and working capital of $688 million. We generated $68 million in operating cash flow for the first nine months of 2025, up from $50 million a year ago, while working capital efficiency helped reduce cash usage to $134 million, compared to $147 million in the prior year.”

Guidance Update
Mr. Atwood concluded, “Since November 2024, we have maintained our full-year 2025 guidance with confidence in our operational agility and disciplined execution. While our fundamentals remain strong with a healthy innovation pipeline, strong partnerships with global distributors and retailers, and a resilient consumer base, we are updating our 2025 guidance to reflect slower than anticipated growth through September of this year, amid ongoing macroeconomic uncertainty and moderating demand in several international markets outside the United States. We now expect $1.47 billion in sales, up 1% year-over-year, leading to diluted earnings per share of $5.12, flat compared to full-year 2024.”

Interparfums plans to release its initial guidance for full-year 2026 on Tuesday, November 18, 2025, after the close of the market.

Dividend
The Company’s regular quarterly cash dividend of $0.80 per share will be paid on December 31, 2025, to shareholders of record on December 15, 2025.

Merger of French Subsidiaries
In order to streamline our corporate structure, in December 2025, our wholly owned French subsidiary, Inter Parfums Holding SA (“IPH Subsidiary”), will merge into Interparfums SA, our French operating subsidiary, with Interparfums SA becoming the surviving entity. IPH Subsidiary did not conduct any business. We do not believe there will be any material impact to our shareholders, because before and after the merger our Company still own approximately 72% of Interparfums SA.

Conference Call
Management will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Thursday, November 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.	or	The Equity Group Inc.
Michel Atwood		Karin Daly
Chief Financial Officer		Investor Relations Counsel
(212) 983-2640		(212) 836-9623 / kdaly@theequitygroup.com
www.interparfumsinc.com		www.theequitygroup.com

See Accompanying Tables

INTERPARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data) (Unaudited)
ASSETS
		September 30, 2025				December 31, 2024
Current assets:
Cash and cash equivalents		$	110,396			$	125,433
Short-term investments			77,460				109,311
Accounts receivable, net			363,624				274,705
Inventories			388,302				371,920
Receivables, other			10,369				6,122
Other current assets			40,587				27,035
Income taxes receivable			—				306
Total current assets			990,738				914,832
Property, equipment and leasehold improvements, net			186,206				153,773
Right-of-use assets, net			24,558				24,603
Trademarks, licenses and other intangible assets, net			328,220				282,484
Deferred tax assets			15,262				17,034
Other assets			19,666				18,535
Total assets		$	1,564,650			$	1,411,261
LIABILITIES AND EQUITY
Current liabilities:
Loans payable - banks		$	9,393			$	8,311
Current portion of long-term debt			56,901				41,607
Current portion of lease liabilities			6,193				6,087
Accounts payable – trade			66,985				91,049
Accrued expenses			152,624				172,758
Income taxes payable			10,677				12,615
Total current liabilities			302,773				332,427
Long–term debt, less current portion			139,976				115,734
Lease liabilities, less current portion			17,406				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 32,064,728 and 32,110,170 shares at September 30, 2025 and December 31, 2024, respectively			32				32
Additional paid-in capital			109,006				106,702
Retained earnings			826,964				763,240
Accumulated other comprehensive loss			(4,780	)			(72,239	)
Treasury stock, at cost, 8,960,587 and 9,981,665 shares at September 30, 2025 and December 31, 2024, respectively			(60,335	)			(52,864	)
Total Interparfums, Inc. shareholders’ equity			870,887				744,871
Noncontrolling interest			233,608				197,774
Total equity			1,104,495				942,645
Total liabilities and equity		$	1,564,650			$	1,411,261

INTERPARFUMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data) (Unaudited)
		Three Months Ended									Nine Months Ended
		September 30,									September 30,
		2025				2024				2025				2024
Net sales		$	429,579			$	424,629			$	1,102,334			$	1,090,821
Cost of sales			156,762				153,469				392,451				396,519
Gross margin			272,817				271,160				709,883				694,302
Selling, general and administrative expenses			164,261				165,166				467,074				455,506
Income from operations			108,556				105,994				242,809				238,796
Other expenses (income):
Interest expense			2,305				1,978				5,637				5,726
Loss on foreign currency			2,215				3,355				4,576				3,085
Interest and investment (income) loss			(2,547	)			254				(1,199	)			(1,690	)
Other (income) loss			(978	)			1				(1,302	)			(35	)
			995				5,588				7,712				7,086
Income before income taxes			107,561				100,406				235,097				231,710
Income taxes			24,282				23,571				55,218				54,974
Net income			83,279				76,835				179,879				176,736
Less:  Net income attributable to the noncontrolling interest			17,470				14,576				39,590				36,606
Net income attributable to Interparfums, Inc.		$	65,809			$	62,259			$	140,289			$	140,130
Earnings per share:
Net income attributable to Interparfums, Inc. common shareholders:
Basic		$	2.05			$	1.94			$	4.37			$	4.37
Diluted		$	2.05			$	1.93			$	4.36			$	4.34
Weighted average number of shares outstanding:
Basic			32,113				32,026				32,114				32,030
Diluted			32,149				32,266				32,158				32,266
Dividends declared per share		$	0.80			$	0.75			$	2.40			$	2.25

FAQ

What were Interparfums (IPAR) Q3 2025 net sales and EPS announced on November 5, 2025?

Interparfums reported Q3 2025 net sales of $430M and diluted EPS of $2.05.

How did Interparfums update its full-year 2025 guidance on November 5, 2025?

The company now expects $1.47B in sales for 2025 (up 1% YoY) and $5.12 diluted EPS (flat vs. 2024).

Which regions drove Interparfums' year-to-date growth through September 30, 2025?

Year-to-date growth was led by Central & South America (+12%), with North America +4% and Western Europe +3%.

What regions showed the largest declines for Interparfums through September 30, 2025?

The largest decline was in Middle East & Africa (-16%), partly due to the Dunhill license run-off.

How did Interparfums' operating cash flow perform in the first nine months of 2025?

Operating cash flow improved to $68 million for the first nine months of 2025, up from $50 million a year earlier.

When will Interparfums release initial guidance for full-year 2026 and when is the dividend payable?

Initial 2026 guidance will be released on November 18, 2025; the regular quarterly cash dividend of $0.80 per share is payable on December 31, 2025 to holders of record on December 15, 2025.