Key Takeaways Interparfums sees 2026 as a consolidation year with $1.48B in sales and lower EPS of $4.85.It expects macro softness and retail destocking to weigh on results but sees support from FX and newer brands.IPAR plans broad global launches in 2026 to set up a stronger rollout cycle and momentum in 2027.Interparfums, Inc. (IPAR) has issued an initial outlook for 2026, signaling a measured year ahead as it prepares for a stronger acceleration in 2027. The company expects net sales of approximately $1. ...

NEW YORK, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today announced initial guidance for its fiscal year ending December 31, 2026. Guidance2026E2025E% ChangeNet Sales$1.48B$1.47B+1%Diluted EPS$4.85$5.12<td ...

Core Insights - Interparfums (IPAR) has established itself as a consistent performer in the luxury fragrance industry, focusing on brand management, free cash flow, and profitability [2] - The company has adjusted its 2025 sales forecast to $1.47 billion, reflecting a 1% year-over-year increase, influenced by economic challenges and retailer inventory reductions [3] - Interparfums has reported a 6% increase in diluted EPS to $2.05 for Q3 2025, marking 20 consecutive quarters of profitability [3] Financial Performance - The company has a free cash flow yield of 5.0%, indicating strong cash generation capabilities [7] - Interparfums has achieved a 3-year average revenue growth of 14.7% and an operating margin of 19.2%, showcasing solid fundamentals [7] - The stock is currently trading at a 41% discount to its 2-year high and 12% below its 1-month high, with a price-to-sales ratio lower than its 3-year average [7] Market Position and Strategy - The growth in sales is attributed to new licensing agreements with brands like Lacoste and Coach, along with a planned launch for Longchamp in 2027 [3] - The luxury fragrance sector is expected to grow at a compound annual growth rate (CAGR) of 8.86% through 2030, providing a favorable market backdrop for Interparfums [3]

Core Insights - Interparfums, Inc. reported third-quarter 2025 results with earnings of $2.05 per share, a 6% increase from $1.93 in the prior year, surpassing the Zacks Consensus Estimate of $1.85 per share [3][9] - Consolidated net sales reached $429.6 million, reflecting a 1% increase from $424.6 million in the same period last year, driven by strong consumer interest in prestige and luxury fragrances [3][9] Financial Performance - The consolidated gross margin was 63.5%, down 40 basis points from the previous year, primarily due to increased U.S. import tariffs [4] - Selling, general and administrative expenses accounted for 38.2% of net sales, a decrease of 70 basis points year over year, with advertising and promotional expenditures at 15.3% of net sales [5] - Operating income was $108.6 million, with an operating margin of 25.3%, up from 25% in the prior year [5] Financial Health - The company ended the quarter with cash and cash equivalents of $110.4 million, long-term debt of $140 million, and total equity of $1,104.5 million [6] - A cash dividend of 80 cents per share was announced, payable on December 31, 2025, to shareholders of record as of December 15 [6] Future Outlook - Interparfums revised its 2025 sales outlook to $1.47 billion, a 1% year-over-year increase, down from the previous guidance of $1.51 billion [7][8] - The earnings per share forecast for 2025 is now $5.12, consistent with 2024 levels, compared to the earlier expectation of $5.35 [8]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 reached $430 million, marking a 1% increase year-over-year for both the quarter and the first nine months of the year [13][24] - Gross margin for the first nine months expanded by 80 basis points to 64.4% from 63.6% in the prior year, but declined by 40 basis points to 63.5% in Q3 due to higher tariffs impacting U.S. imports [14][15] - Operating income for Q3 was $109 million, a 2% increase, resulting in an operating margin of 25.3% [16] - Net income for Q3 was $66 million, or $2.05 per diluted share, reflecting a 6% increase compared to the same quarter last year [18] Business Line Data and Key Metrics Changes - European-based operations saw net sales rise by 5% for Q3 and 6% year-to-date, with a gross margin of 66% for the quarter [19] - U.S.-based operations experienced a 5% decline in net sales for Q3, with gross margin decreasing by 110 basis points due to transitional tariff impacts [20] - The introduction of new products and brands, such as Roberto Cavalli and the Solferino Collection, is expected to drive future sales growth [4][6] Market Data and Key Metrics Changes - E-commerce sales are accelerating, with fragrance holding a 50% market share within the beauty category on Amazon [7] - Travel retail grew by 13% in Q3, driven by brands like Lacoste, Jimmy Choo, and Coach [8] - The overall market growth in the U.S. for Q3 was up 7%, indicating healthy consumption despite a disconnect between sell-in and sell-out [31] Company Strategy and Development Direction - The company is focusing on innovation and product enhancements to meet changing consumer preferences, supported by advertising and promotional efforts [3] - Plans to expand the ultra-luxury direct-to-consumer segment and improve supply chain efficiencies are in place to navigate macroeconomic uncertainties [9][10] - The company anticipates moderate growth in 2026, with a return to stronger growth expected in 2027 driven by new brand launches [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain uncertain, but expressed confidence in the strength of the business model and consumer demand [3][25] - The company is monitoring inventory levels closely and is prepared to respond to retailer needs as they arise [11][22] - Management highlighted the importance of maintaining strong relationships with retailers and distributors to support future growth [12][25] Other Important Information - The company has repurchased $7.5 million in shares year-to-date and plans to continue evaluating share repurchases [23] - Inter Parfums was named beauty company of the year by Women's Wear Daily, reflecting the strength of its brands and partnerships [12] Q&A Session Summary Question: Insights on holiday season expectations and pricing feedback - Management reported strong sales in October and positive forecasts for November, indicating retailers are continuing to buy [26] - Pricing increases were modest and well-accepted, particularly for prestige brands, with no significant resistance noted from retailers or consumers [28] Question: Shipment timing and disconnect between sell-in and sell-out - There is a noted disconnect between sell-in and sell-out, with market growth remaining healthy despite this [30][31] Question: Growth profile from new brands over the next two years - New brands like Off-White and Longchamp are expected to drive growth, with significant potential seen in Longchamp [33][34] Question: Expectations for gross margin in Q4 - Management anticipates slight erosion in gross margins due to ongoing tariff impacts, with improvements expected in Q2 2026 [35][36]

Financial Performance - Interparfums reported quarterly earnings of $2.05 per share, exceeding the Zacks Consensus Estimate of $1.85 per share, and up from $1.93 per share a year ago, representing an earnings surprise of +10.81% [1] - The company posted revenues of $429.58 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.1%, compared to $424.63 million in the same quarter last year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $385.51 million, and for the current fiscal year, it is $5.18 on revenues of $1.5 billion [7] - The estimate revisions trend for Interparfums was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - Interparfums operates within the Zacks Consumer Products - Discretionary industry, which is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Interparfums' stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Sales Performance - European based fragrance product sales represented approximately 70% of net sales for the nine months ended September 30, 2025, compared to 67% for the same period in 2024[86]. - Net sales for the three months ended September 30, 2025, increased by 1% to $429.6 million, while net sales for the nine months ended September 30, 2025, also increased by 1% to $1,102.3 million[99]. - Sales in the European based operations for the three months ended September 30, 2025, increased by 5%, driven by brands such as Jimmy Choo, Lacoste, and Coach, which grew by 16%, 8%, and 6%, respectively[100]. - United States based operations sales decreased by 6% for the three months ended September 30, 2025, primarily due to the discontinuation of the Dunhill license[101]. - North America net sales rose by 4% for the nine months ended September 30, 2025, while Western Europe saw a 3% increase[104]. - The discontinuation of the Dunhill license decreased net sales by 1% for the nine months ended September 30, 2025, compared to the prior year[99]. - Roberto Cavalli fragrance sales grew by 44% and 33% in the three and nine months ended September 30, 2025, respectively, due to strong innovation and new product launches[101]. - European based operations reported net sales of $295.3 million for the three months ended September 30, 2025, an increase from $282.4 million in the prior year[105]. - United States based operations saw net sales decline to $137.1 million for the three months ended September 30, 2025, down from $146.1 million in the prior year[108]. Financial Metrics - Gross profit margin as a percentage of net sales was 63.5% and 64.4% for the three and nine months ended September 30, 2025, compared to 63.9% and 63.6% for the same periods in the prior year[105]. - Selling, general and administrative expenses as a percentage of net sales were 38.2% and 42.4% for the three and nine months ended September 30, 2025, compared to 38.9% and 41.8% for the same periods in the prior year[110]. - Net income attributable to Interparfums, Inc. was $65.8 million and $140.3 million for the three and nine months ended September 30, 2025, compared to $62.3 million and $140.1 million for the same periods in the prior year[123]. - Royalty expense represented 8.1% and 8.2% of net sales for the three and nine months ended September 30, 2025, compared to 8.0% and 8.1% for the same periods in the prior year[114]. - Operating margins were 25.3% and 22.0% for the three and nine months ended September 30, 2025, compared to 25.0% and 21.9% for the same periods in the prior year[115]. - Promotion and advertising expenses were $65.5 million and $185.9 million for the three and nine months ended September 30, 2025, representing 15.3% and 16.9% of net sales[112]. Debt and Cash Position - Long-term debt aggregated $196.9 million as of September 30, 2025, an increase from $157.3 million as of December 31, 2024[117]. - As of September 30, 2025, the company had $187.9 million in cash, cash equivalents, and short-term investments, with no liquidity issues expected[126]. - Working capital as of September 30, 2025, totaled $688.0 million, with approximately 77% of total assets held by European operations[127]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $68.4 million, up from $49.7 million in the same period of 2024[133]. - Accounts receivable increased by 23% from year-end 2024, with days' sales outstanding rising to 89 days from 83 days year-over-year[133]. - Inventory levels decreased by 5% from year-end 2024, with finished goods comprising 68% of inventory as of September 30, 2025, compared to 63% a year earlier[133]. Strategic Initiatives - The company plans to continue investments in fast-growing markets and channels to increase market share[94]. - In July 2025, the company’s subsidiary signed an exclusive fragrance license agreement with Longchamp, effective through December 31, 2036, with the first launch expected in 2027[129]. - The company acquired all intellectual property rights relating to Maison Goutal in June 2025, with commercial use expected to begin after the existing license expires on December 31, 2025[129]. - The annual dividend was increased to $3.20 per share in February 2025, with the next quarterly dividend of $0.80 per share payable on December 31, 2025[139]. - As of September 30, 2025, the company had foreign currency contracts totaling approximately $60 million with maturities of less than one year[147]. - The company anticipates potential inflationary impacts in the last quarter of 2025 and beyond due to tariffs affecting its cost structure[141].

Core Insights - Interparfums, Inc. reported a modest growth in net sales for Q3 2025, with a 1% increase year-over-year, reflecting ongoing market dynamics and macroeconomic challenges [2][3][12] - The company has refined its FY2025 guidance to anticipate $1.47 billion in sales, representing a 1% increase from the previous year, with diluted earnings per share expected to remain flat at $5.12 [12] Financial Performance - For Q3 2025, net sales reached $430 million, compared to $425 million in Q3 2024, while net sales for the first nine months of 2025 totaled $1.102 billion, up from $1.091 billion in the same period last year [2][11] - Gross margin for Q3 2025 was 63.5%, a slight decrease from 63.9% in Q3 2024, but improved to 64.4% for the first nine months, up from 63.6% [2][6] - Operating income increased by 2% to $109 million in Q3 2025, with an operating margin of 25.3%, compared to 25.0% in Q3 2024 [2][8] Market Dynamics - The prestige and luxury fragrance category continues to perform well, but broader macroeconomic factors such as retailer destocking and evolving consumer behavior have moderated topline growth [3][4] - Sales in North America and Western Europe grew by 4% and 3% respectively, while sales in Asia/Pacific declined by 9% due to distribution challenges [4][5] Strategic Initiatives - The company is focused on maintaining sales momentum through a strong innovation pipeline and rigorous advertising and promotion programs [3][5] - Interparfums plans to leverage e-commerce channels to maximize brand engagement and capture sales during the holiday gifting season [5][12] Operational Efficiency - SG&A expenses as a percentage of net sales decreased to 38.2% in Q3 2025 from 38.9% in Q3 2024, reflecting effective management of advertising and promotional activities [7][8] - The company reported a healthy financial position with $188 million in cash and cash equivalents, and generated $68 million in operating cash flow for the first nine months of 2025, up from $50 million a year ago [12]

Core Insights - The London Company Small Cap Strategy reported a 1.9% appreciation in its small-cap portfolio for Q3 2025, underperforming the Russell 2000 Index which gained 12.4% [1] - The investor letter highlighted Inter Parfums, Inc. (NASDAQ:IPAR) as a key holding, noting its recent stock performance and market capitalization [2][4] Company Performance - Inter Parfums, Inc. (NASDAQ:IPAR) experienced a one-month return of -3.03% and a 52-week decline of 26.90%, closing at $90.58 per share with a market cap of $2.909 billion on November 3, 2025 [2] - The company was identified as a bottom holding due to cautious inventory management by retailers and a softening fragrance market, although it continues to show resilience with solid growth and market share gains [3] Investment Sentiment - Inter Parfums, Inc. (NASDAQ:IPAR) was held by 20 hedge fund portfolios at the end of Q2 2025, an increase from 17 in the previous quarter, indicating growing interest among institutional investors [4] - Despite the potential of Inter Parfums, the company is not considered among the top 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer better upside potential [4]

Core Insights - Interparfums, Inc. (NASDAQ:IPAR) is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - The company has a strong brand strategy and a solid dividend track record, appealing to long-term investors [2] Company Overview - Interparfums designs, manufactures, and markets high-end fragrances under long-term licensing agreements with major fashion houses such as Jimmy Choo, Lacoste, Coach, and Montblanc, providing global reach and a diverse product lineup [2] - Recently, the company has expanded its portfolio through new licensing deals with brands like Off-White and Longchamp, while also enhancing its own fragrance lines [3] Financial Performance - In Q3 2025, Interparfums reported revenue of $430 million, slightly below the consensus estimate of $432 million, with growth driven by brands like Jimmy Choo, Coach, Roberto Cavalli, and MCM, while Montblanc and Donna Karan/DKNY saw declines [4] - European sales increased by 5% year over year, building on a 21% growth from the same period last year, largely due to the success of Jimmy Choo's I Want Choo line, which saw a 16% rise in quarterly sales [5] Dividend Information - Interparfums has paid dividends for 20 consecutive years, establishing a strong reputation among income-focused investors [6] - Over the past five years, the company has raised its dividend payouts at an annual average rate of 27.5%, with a current quarterly dividend of $0.80 per share and a dividend yield of 3.58% as of October 30 [6]