UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2022. OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ___________to ________. Commission File No. 0-16469 INTER PARFUMS, INC. (Exact name of registrant as specified in its charter) | Delaware | 13-3275609 | ...

Financial Data and Key Metrics Changes - The company raised its 2022 guidance to approximately $1 billion in net sales and diluted EPS of $3.25 [10] - The consolidated effective tax rate was 24% for the first half of 2022, compared to 30% for the same period last year [37] - Midyear inventory levels increased by 41% to $266 million from the 2021 year-end [38] Business Line Data and Key Metrics Changes - U.S. operations saw a gross profit margin improvement of 100 basis points year-over-year, with a 69% increase in net sales [31] - European operations experienced a gross profit margin of just under 70% in the second quarter of both 2022 and 2021 [30] - Sales from the company's three largest brands in the first half of 2022 were up 25% for Montblanc, 16% for Jimmy Choo, and 29% for Coach in Euro terms, but lower in dollar terms due to currency fluctuations [15] Market Data and Key Metrics Changes - North America, the largest market, achieved sales growth of 8% year-to-date [12] - Western Europe and Asia-Pacific, the second and third largest markets, grew sales by 40% and 39%, respectively [13] - Sales in Eastern Europe declined by 14% thus far in 2022 [13] Company Strategy and Development Direction - The company is shifting production from China to the U.S. and Europe to reduce logistics issues and improve supply chain efficiency [23][24] - Plans for 2023 include brand extensions rather than major new product launches, with a focus on maintaining growth without immediate blockbuster releases [19][79] - The company is actively seeking new fragrance partnerships and is on the lookout for aspirational brands with growth potential [20] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding international turmoil affecting visibility and guidance [10] - The renaissance in travel retail is noted, with packed flights and eager shoppers, indicating a positive trend for the second half of the year [13][66] - Inflation is being managed through moderate price increases, with an average price increase of 5% already implemented [26] Other Important Information - The company is undergoing an ERP implementation to enhance inventory and warehouse management, expected to be completed by year-end [22] - The company has ceased shipping products to Russia from the U.S. and estimates a loss of $20 million to $30 million due to reduced shipments [86] Q&A Session Summary Question: Comments on gross margin decline - Management explained that the consolidated gross margin appeared to decline due to a higher sales mix from U.S. operations, despite improvements in both U.S. and European operations [44][45] Question: Impact of software changeover on distribution - The software changeover by a third-party logistics partner affected shipping but has been rectified, with no further impacts expected [48][49] Question: Pricing strategy and demand changes - Management confirmed that price increases have been accepted globally, and they are monitoring costs and demand closely [61][62] Question: Travel retail demand - Management noted a strong resurgence in travel retail, with optimistic projections from duty-free operators [66] Question: Changes in ordering habits in Europe - No significant negative impact on orders from Europe has been observed, although some U.S. retailers are experiencing slowdowns [76] Question: Plans for 2023 releases - The company has plans for flankers and complements in 2023, with confidence in maintaining sales momentum [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2022. OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ___________to ________. Commission File No. 0-16469 INTER PARFUMS, INC. (Exact name of registrant as specified in its charter) | Delaware | 13-3275609 | | --- ...

Investor Presentation MAY 2022 Fair Disclosure Statements in this presentation 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. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking sta ...

Inter Parfums, Inc. (NASDAQ:IPAR) Q1 2022 Earnings Conference Call May 11, 2022 11:00 AM ET Company Participants Russell Greenberg - Executive Vice President & Chief Financial Officer Jean Madar - Chief Executive Officer Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Grace Menk - Jefferies Hamed Khorsand - BWS Financial Operator Greetings, and welcome to the Inter Parfums First Quarter 2022 Conference Call and Webcast. At this time, all participants are in a listen-only mode. A brief quest ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the unaudited consolidated financial statements and management's discussion and analysis for Inter Parfums, Inc [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Inter Parfums, Inc.'s unaudited consolidated financial statements, including balance sheets, income statements, and cash flow statements, with detailed notes on accounting policies, COVID-19 impact, recent agreements, and segment information [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$1,162,208 thousand** by March 31, 2022, driven by higher accounts receivable and inventories, while cash decreased and total equity rose | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------- | | Total Assets | $1,162,208 | $1,145,364 | +$16,844 | | Total Current Assets | $734,467 | $709,715 | +$24,752 | | Cash and cash equivalents | $110,122 | $159,613 | -$49,491 | | Accounts receivable, net | $206,258 | $159,281 | +$46,977 | | Inventories | $227,108 | $198,914 | +$28,194 | | Total Liabilities | $403,967 | $407,032 | -$3,065 | | Total Equity | $758,241 | $738,332 | +$19,909 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Net sales increased **26.3%** to **$250,678 thousand** in Q1 2022, driving a **27.6%** rise in net income to **$35,299 thousand** and diluted EPS to **$1.10** | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | Change (in thousands) | YoY Change (%) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | :------------- | | Net sales | $250,678 | $198,528 | +$52,150 | +26.3% | | Cost of sales | $92,020 | $73,280 | +$18,740 | +25.6% | | Gross margin | $158,658 | $125,248 | +$33,410 | +26.7% | | Income from operations | $61,217 | $47,959 | +$13,258 | +27.6% | | Net income attributable to Inter Parfums, Inc. | $35,299 | $27,662 | +$7,637 | +27.6% | | Basic EPS | $1.11 | $0.87 | +$0.24 | +27.6% | | Diluted EPS | $1.10 | $0.87 | +$0.23 | +26.4% | | Dividends declared per share | $0.50 | $0.25 | +$0.25 | +100.0% | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly increased to **$35,103 thousand** in Q1 2022, driven by higher net income and reduced negative translation adjustments | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net income | $46,291 | $36,626 | | Net derivative instrument gain (loss), net of tax | $261 | $(600) | | Translation adjustments, net of tax | $(12,441) | $(26,119) | | Comprehensive income | $35,103 | $9,907 | | Comprehensive income attributable to Inter Parfums, Inc. | $27,458 | $10,048 | [Consolidated Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to **$758,241 thousand** by March 31, 2022, primarily due to increased retained earnings from net income | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | | :------------------------------------ | :------------------------------ | :------------------------------ | | Common stock, end of period | $32 | $32 | | Additional paid-in capital, end of period | $88,181 | $77,566 | | Retained earnings, end of period | $580,094 | $523,600 | | Accumulated other comprehensive loss, end of period | $(46,273) | $(23,611) | | Noncontrolling interest, end of period | $173,682 | $166,551 | | Total equity | $758,241 | $706,663 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash and cash equivalents decreased by **$58,265 thousand** in Q1 2022, primarily due to cash used in operating, investing, and financing activities | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Net cash provided by (used in) operating activities | $(23,944) | $32,516 | | Net cash used in investing activities | $(11,803) | $(31,874) | | Net cash used in financing activities | $(20,032) | $ (20,770) | | Effect of exchange rate changes on cash | $(2,486) | $(6,240) | | Net decrease in cash and cash equivalents | $(58,265) | $(26,368) | | Cash and cash equivalents - end of period | $110,122 | $143,313 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, COVID-19 impact, recent agreements, inventory, fair value, derivatives, leases, share-based payments, EPS, and segment information [1. Significant Accounting Policies](index=12&type=section&id=1.%20Significant%20Accounting%20Policies) Significant accounting policies align with those detailed in the Form 10-K for the year ended December 31, 2021 - The accounting policies followed are set forth in the notes to the consolidated financial statements included in the Form 10-K for the year ended December 31, 2021[30](index=30&type=chunk) [2. Impact of COVID-19 Pandemic](index=12&type=section&id=2.%20Impact%20of%20COVID-19%20Pandemic) Business improved in 2021 and early 2022, but COVID-19 variants, travel restrictions, and supply chain disruptions continue to pose material risks through 2022 - Business significantly improved in the second half of 2020 and continued to improve throughout 2021 and thus far in 2022, as retail stores reopened and consumers increased online purchasing[33](index=33&type=chunk) - Introduction of COVID-19 variants and curtailed international air travel continue to pose challenges[33](index=33&type=chunk) - Supply chain disruptions, affecting component procurement, goods transport, and cost increases, are expected to persist until later in 2022[33](index=33&type=chunk) [3. Recent Agreements](index=12&type=section&id=3.%20Recent%20Agreements) New licensing agreements for Salvatore Ferragamo, Emanuel Ungaro, and Donna Karan/DKNY, plus the acquisition of the Paris headquarters, mark recent strategic developments - **Salvatore Ferragamo**: Exclusive worldwide license for Ferragamo brand perfumes, effective October 2021 for 10 years (plus 5-year option) Acquisition of a wholly-owned Italian subsidiary from Salvatore Ferragamo on October 1, 2021, accounted for as an asset acquisition with total consideration of **$35,760 thousand**[34](index=34&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk) - **Emanuel Ungaro**: 10-year exclusive global licensing agreement (plus 5-year option) for fragrances under the Emanuel Ungaro brand, entered in October 2021[39](index=39&type=chunk) - **Donna Karan and DKNY**: Long-term global licensing agreement for fragrances under Donna Karan and DKNY brands, entered in September 2021, effective July 1, 2022 Issued **65,342 shares** of common stock valued at **$5.0 million** to the licensor New fragrances planned for 2023[40](index=40&type=chunk) - **Land and Building Acquisition - Future Headquarters in Paris**: Interparfums SA acquired its future Paris headquarters in April 2021 As of March 31, 2022, **$138.4 million** of the purchase price is included in property, equipment and leasehold improvements, financed by a 10-year **€120 million** bank loan[41](index=41&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) [4. Recent Accounting Pronouncements](index=14&type=section&id=4.%20Recent%20Accounting%20Pronouncements) No recent accounting pronouncements are expected to materially impact the consolidated financial statements - No recent accounting pronouncements issued but not yet adopted would have a material effect on consolidated financial statements[46](index=46&type=chunk) [5. Inventories](index=14&type=section&id=5.%20Inventories) Total inventories increased to **$227,108 thousand** by March 31, 2022, reflecting growth in both raw materials and finished goods | Inventory Type | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------- | :------------------------------ | :------------------------------- | | Raw materials and component parts | $114,308 | $111,312 | | Finished goods | $112,800 | $87,602 | | Total Inventories | $227,108 | $198,914 | [6. Fair Value Measurement](index=14&type=section&id=6.%20Fair%20Value%20Measurement) Financial assets and liabilities, including short-term investments and foreign currency contracts, are measured at fair value using Level 1 and Level 2 inputs | Asset/Liability (March 31, 2022) | Total (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :-------------------------------------------------------------------------------- | :------------------- | :--------------------- | :--------------------- | :--------------------- | | Short-term investments | $155,114 | $20,650 | $134,464 | $— | | Foreign currency forward exchange contracts not accounted for using hedge accounting | $1,476 | $— | $1,476 | $— | | Foreign currency forward exchange contracts accounted for using hedge accounting | $1,596 | $— | $1,596 | $— | | Interest rate swaps | $(2,579) | $— | $(2,579) | $— | - The carrying amount of cash and cash equivalents, short-term investments, accounts receivable, other receivables, cash held in escrow, accounts payable, and accrued expenses approximate fair value due to short maturities[52](index=52&type=chunk) [7. Derivative Financial Instruments](index=16&type=section&id=7.%20Derivative%20Financial%20Instruments) The company uses foreign currency forward exchange contracts and interest rate swaps to manage foreign currency and interest rate risks, with hedging gains/losses in OCI - Uses foreign currency forward exchange contracts to hedge exposure related to foreign currency denominated receivables and future sales[55](index=55&type=chunk) - Entered into interest rate swap contracts for **€80 million** of a **€120 million** loan, effectively fixing the variable interest rate at approximately **1.1%**[57](index=57&type=chunk) - At March 31, 2022, had foreign currency forward exchange contracts totaling approximately U.S. **$153.0 million**, GB **£1.0 million**, and JPY **¥150.0 million**, all with maturities less than one year[60](index=60&type=chunk) [8. Leases](index=17&type=section&id=8.%20Leases) Operating leases for offices, warehouses, and equipment had a weighted average remaining term of **6.7 years** and a discount rate of **2.6%** as of March 31, 2022 - Weighted average remaining lease term: **6.7 years** (as of March 31, 2022)[63](index=63&type=chunk) - Weighted average discount rate: **2.6%** (as of March 31, 2022)[63](index=63&type=chunk) - Rental expense for operating leases: **$1.8 million** (Q1 2022) vs **$1.4 million** (Q1 2021)[63](index=63&type=chunk) [9. Share-Based Payments](index=18&type=section&id=9.%20Share-Based%20Payments) Share-based payment expense decreased to **$0.65 million** in Q1 2022, with no new stock options granted during the period - Share-based payment expense decreased income before income taxes by **$0.65 million** (Q1 2022) and **$0.73 million** (Q1 2021)[67](index=67&type=chunk) - No stock options were granted during the three months ended March 31, 2022[71](index=71&type=chunk) - As of March 31, 2022, **510,295 options** were outstanding with a weighted average exercise price of **$57.69**[68](index=68&type=chunk) [10. Net Income Attributable to Inter Parfums, Inc. Common Shareholders](index=19&type=section&id=10.%20Net%20Income%20Attributable%20to%20Inter%20Parfums%2C%20Inc.%20Common%20Shareholders) Basic EPS rose to **$1.11** and diluted EPS to **$1.10** in Q1 2022, reflecting increased net income and the impact of dilutive stock options | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to Inter Parfums, Inc. | $35,299 | $27,662 | | Weighted average shares (Basic) | 31,840 | 31,631 | | Weighted average shares (Diluted) | 32,010 | 31,772 | | Basic EPS | $1.11 | $0.87 | | Diluted EPS | $1.10 | $0.87 | [11. Segment and Geographic Areas](index=21&type=section&id=11.%20Segment%20and%20Geographic%20Areas) European operations contributed **73%** of Q1 2022 net sales, with significant growth across all regions, especially North America, Western Europe, and Asia | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | YoY Change (%) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :------------- | | **Net Sales by Segment:** | | | | | United States | $68,502 | $39,196 | +74.8% | | Europe | $182,182 | $159,766 | +14.0% | | **Net Sales by Region:** | | | | | North America | $81,500 | $72,600 | +12.3% | | Western Europe | $63,600 | $45,200 | +40.7% | | Asia | $42,500 | $30,100 | +41.2% | | Middle East | $24,100 | $18,900 | +27.5% | | Central and South America | $18,300 | $13,300 | +37.6% | | Eastern Europe | $18,000 | $15,900 | +13.2% | - European operations represented approximately **73%** of net sales in Q1 2022 (**80%** in Q1 2021)[85](index=85&type=chunk) - United States operations represented **27%** of net sales in Q1 2022 (**20%** in Q1 2021)[86](index=86&type=chunk) [12. Reclassifications](index=21&type=section&id=12.%20Reclassifications) Prior year cash flow statement amounts were reclassified to align with current period presentation - Prior year amounts in consolidated statements of cash flows reclassified for current period presentation[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section reviews the company's fragrance business, segments, growth strategies, COVID-19 impact, recent agreements, and analyzes Q1 2022 financial results and liquidity [Overview](index=22&type=section&id=Overview) Inter Parfums operates in the fragrance business through European-based (**73%** of Q1 2022 net sales) and U.S.-based (**27%**) segments, focusing on licensed brands and new product introductions - Operates in the fragrance business, manufacturing, marketing, and distributing fragrances and related products[84](index=84&type=chunk) - Manages business in two segments: European-based operations (**73%** owned subsidiary IPSA in Paris) and United States-based operations[84](index=84&type=chunk) - European operations sales represented approximately **73%** of net sales for Q1 2022, primarily under license agreements[85](index=85&type=chunk) - United States operations sales represented **27%** of net sales for Q1 2022, also primarily under license or other agreements[86](index=86&type=chunk) - Growth strategies include adding new brands (licenses or acquisitions) and introducing new products with advertising and merchandising support[90](index=90&type=chunk) - The company does not own manufacturing facilities; it acts as a general contractor, sourcing components and using third-party fillers for manufacturing[91](index=91&type=chunk) | Brand | Three Months Ended March 31, 2022 (% of net sales) | Three Months Ended March 31, 2021 (% of net sales) | | :---------- | :----------------------------------------------- | :----------------------------------------------- | | Montblanc | 19% | 20% | | Jimmy Choo | 15% | 18% | | Coach | 15% | 16% | | GUESS | 11% | 10% | - A strong U.S. dollar negatively impacts net sales but positively affects earnings for European operations, as almost **50%** of European sales are USD-denominated while costs are in Euro[93](index=93&type=chunk) - The Russian invasion of Ukraine negatively impacted operations in those regions, which accounted for approximately **4%** of consolidated net sales in fiscal 2021[94](index=94&type=chunk) [Impact of COVID-19 Pandemic](index=24&type=section&id=Impact%20of%20COVID-19%20Pandemic) Business improved in 2021 and early 2022, but COVID-19 variants, travel restrictions, and supply chain disruptions are expected to materially impact results through 2022 - Business improved in H2 2020, 2021, and early 2022 due to retail reopenings and increased online purchasing[99](index=99&type=chunk) - Challenges persist from COVID-19 variants, curtailed international air travel, and supply chain disruptions (procurement, transport, cost increases)[99](index=99&type=chunk) - Company is addressing supply chain issues by ordering in advance, increasing inventory, and diversifying suppliers[99](index=99&type=chunk) - Material adverse effects on operations, financial position, and cash flows are expected through at least the end of 2022[99](index=99&type=chunk) [Recent Important Events](index=24&type=section&id=Recent%20Important%20Events) New licensing agreements for Salvatore Ferragamo, Emanuel Ungaro, and Donna Karan/DKNY, plus the acquisition of the Paris headquarters, mark recent strategic developments - **Salvatore Ferragamo**: Exclusive worldwide license for 10 years (plus 5-year option) for Ferragamo brand perfumes, effective October 2021 Acquired a wholly-owned Italian subsidiary[100](index=100&type=chunk)[101](index=101&type=chunk) - **Emanuel Ungaro**: 10-year exclusive global licensing agreement (plus 5-year option) for Emanuel Ungaro fragrances, entered October 2021[106](index=106&type=chunk) - **Donna Karan and DKNY**: Long-term global licensing agreement for Donna Karan and DKNY fragrances, entered September 2021, effective July 1, 2022 Issued **$5.0 million** in common stock to the licensor[107](index=107&type=chunk) - **Land and Building Acquisition - Future Headquarters in Paris**: Interparfums SA acquired its future Paris headquarters in April 2021 for **$138.4 million**, financed by a **€120 million** bank loan[108](index=108&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk) [Discussion of Critical Accounting Policies](index=26&type=section&id=Discussion%20of%20Critical%20Accounting%20Policies) Critical accounting policies are detailed in the 2021 Annual Report on Form 10-K - Critical accounting policies are detailed in the 2021 Annual Report on Form 10-K[113](index=113&type=chunk) [Results of Operations (Three Months Ended March 31, 2022 as Compared to the Three Months Ended March 31, 2021)](index=26&type=section&id=Results%20of%20Operations) Q1 2022 saw **26.3%** net sales growth, improved gross margins, increased SG&A due to promotion, stable operating margins, and significantly higher net income [Net Sales](index=26&type=section&id=Net%20Sales) Net sales grew **26.3%** to **$250.7 million** in Q1 2022, with European sales up **14.0%** and U.S. sales up **76.7%**, driven by new launches and key brands | Segment | Three Months Ended March 31, 2022 (in millions) | Three Months Ended March 31, 2021 (in millions) | % Change | | :------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :------- | | European based product sales | $182.2 | $159.7 | 14.0% | | United States based product sales | $68.5 | $38.8 | 76.7% | | Total Net Sales | $250.7 | $198.5 | 26.3% | - At comparable foreign currency exchange rates, net sales increased **30%** from Q1 2021[114](index=114&type=chunk) - Largest European brands (Montblanc, Jimmy Choo, Coach) grew Q1 2022 sales by **22%**, **7%**, and **22%** respectively GUESS was the most significant contributor for U.S. operations, up **36%**[116](index=116&type=chunk) - New product launches (Montblanc Legend Red, new Coach signature scent, Coach Dreams Sunset extensions, GUESS Uomo) and incremental sales from newer brands (MCM, Moncler, Ferragamo, Ungaro) contributed to growth[117](index=117&type=chunk) - Sales in North America rose **12%**, Western Europe and Asia/Pacific both increased **41%**, Middle East up **27%**, Central and South America up **38%**, and Eastern Europe up **13%**[121](index=121&type=chunk) [Gross Profit margin](index=27&type=section&id=Gross%20Profit%20margin) Consolidated gross profit margin improved to **63.3%** in Q1 2022, with European operations benefiting from a stronger U.S. dollar and U.S. operations from higher sales | Segment | Gross Margin % (Q1 2022) | Gross Margin % (Q1 2021) | | :-------------------- | :----------------------- | :----------------------- | | European operations | 66.8% | 65.5% | | United States operations | 53.9% | 53.2% | - Stronger U.S. dollar (average **1.12** vs **1.20** in Q1 2021) positively affected European gross margin[122](index=122&type=chunk) - Increased sales in U.S. operations allowed for better absorption of fixed expenses[125](index=125&type=chunk) - Supply chain disruptions are expected to continue to negatively impact sales and gross margin[126](index=126&type=chunk) [Selling, general and administrative expenses](index=28&type=section&id=Selling%2C%20general%20and%20administrative%20expenses) SG&A expenses increased for both European (**16.2%**) and U.S. (**83.7%**) operations in Q1 2022, driven by higher promotion and advertising expenditures | Segment | SG&A Expenses (Q1 2022, in millions) | SG&A Expenses (Q1 2021, in millions) | % Change | SG&A % of Net Sales (Q1 2022) | SG&A % of Net Sales (Q1 2021) | | :-------------------------- | :----------------------------------- | :----------------------------------- | :------- | :------------------------------ | :------------------------------ | | European Operations | $69.0 | $59.4 | 16.2% | 37.9% | 37.2% | | United States Operations | $28.4 | $15.5 | 83.7% | 41.5% | 39.9% | - Promotion and advertising expenditures: **$34.2 million** (Q1 2022) vs **$21.8 million** (Q1 2021), representing **13.6%** and **11.0%** of net sales, respectively[129](index=129&type=chunk) - Anticipates full-year promotion and advertising expenditures to aggregate approximately **21%** of net sales, in line with pre-COVID historical averages[129](index=129&type=chunk) - Royalty expense: **$19.4 million** (Q1 2022) vs **$15.4 million** (Q1 2021), representing **7.7%** of net sales for both periods[132](index=132&type=chunk) [Income from Operations](index=29&type=section&id=Income%20from%20Operations) Operating margins remained stable at **24.4%** in Q1 2022, reflecting balanced impacts from sales growth, gross margin, and SG&A - Operating margins: **24.4%** (Q1 2022) vs **24.2%** (Q1 2021)[133](index=133&type=chunk) [Other Income and Expense](index=29&type=section&id=Other%20Income%20and%20Expense) Interest expense rose due to Paris headquarters financing, and Q1 2022 investment income/loss included **$3.4 million** in marketable equity security losses - Interest expense primarily related to the 10-year **€120 million** bank loan for the Paris headquarters acquisition[134](index=134&type=chunk) - Interest and investment (income) loss for Q1 2022 included approximately **$3.4 million** of losses on marketable equity securities[136](index=136&type=chunk) [Income Taxes](index=29&type=section&id=Income%20Taxes) Consolidated effective tax rate decreased to **24.4%** in Q1 2022 due to a lower French corporate income tax rate, while the U.S. rate increased | Metric | Q1 2022 | Q1 2021 | | :-------------------------- | :------ | :------ | | Consolidated effective tax rate | 24.4% | 26.8% | | European operations tax rate | 25% | 28% | | U.S. operations tax rate | 20.7% | 17.0% | - Decline in European tax rate due to decrease in French corporate income tax rate[137](index=137&type=chunk) - U.S. tax rate differs from statutory **21%** due to stock option exercise benefits and foreign derived intangible income deductions, offset by state/local taxes[140](index=140&type=chunk) [Net Income](index=30&type=section&id=Net%20Income) Net income attributable to Inter Parfums, Inc. increased to **$35.3 million** in Q1 2022, with strong contributions from both European and U.S. operations | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net income attributable to European operations | $39,776 | $32,439 | | Net income attributable to United States operations | $6,515 | $4,187 | | Net income attributable to Inter Parfums, Inc. | $35,299 | $27,662 | - Net margins attributable to Inter Parfums, Inc. aggregated **14.1%** (Q1 2022) and **13.9%** (Q1 2021)[143](index=143&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the company held **$265 million** in cash and investments, with **$484 million** working capital, but Q1 2022 saw **$23.9 million** cash used in operations - Cash, cash equivalents, and short-term investments: **$265 million** as of March 31, 2022[144](index=144&type=chunk) - Working capital: **$484 million**; working capital ratio: **2.9 to 1** as of March 31, 2022[145](index=145&type=chunk) - Cash used in operating activities: **$23.9 million** (Q1 2022) compared to cash provided of **$32.5 million** (Q1 2021)[150](index=150&type=chunk) - Increase in accounts receivable (**32%** from year-end 2021) and inventories (**16%** from year-end 2021) contributed to cash usage in Q1 2022[150](index=150&type=chunk) - Day's sales outstanding (DSO) was **75 days** in Q1 2022, up slightly from **71 days** in Q1 2021[150](index=150&type=chunk) - The Board authorized a **100%** increase in the annual dividend to **$2.00 per share** in February 2022[156](index=156&type=chunk) - Short-term financing requirements are expected to be met by available cash and credit facilities (**$20.0 million** unsecured revolving line of credit and approximately **$28 million** in international credit lines)[155](index=155&type=chunk)[157](index=157&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages financial exposures using derivative instruments to mitigate foreign exchange and interest rate risks, avoiding speculative trading [General](index=32&type=section&id=General) Financial exposures are managed through a controlled risk program, primarily using derivative instruments like foreign currency forwards and interest rate swaps, not for trading - Manages financial exposures through a controlled risk management program[158](index=158&type=chunk) - Primarily uses derivative financial instruments (foreign currency forward exchange contracts, interest rate swaps)[158](index=158&type=chunk) - Does not engage in trading of foreign currency forward exchange contracts or interest rate swaps[158](index=158&type=chunk) [Foreign Exchange Risk Management](index=32&type=section&id=Foreign%20Exchange%20Risk%20Management) Foreign currency forward exchange contracts hedge receivables and future sales to minimize exchange rate impact on Interparfums SA's cash flows, with maturities under one year - Enters into foreign currency forward exchange contracts to hedge exposure related to foreign currency denominated receivables and future sales[159](index=159&type=chunk) - Purpose is to minimize the effect of foreign exchange rate movements on Interparfums SA's cash flows (functional currency: euro)[159](index=159&type=chunk) - At March 31, 2022, had foreign currency contracts of approximately U.S. **$153.0 million**, GB **£1.0 million**, and JPY **¥150 million**, all with maturities less than one year[164](index=164&type=chunk) [Interest Rate Risk Management](index=33&type=section&id=Interest%20Rate%20Risk%20Management) Interest rate risk is mitigated by monitoring rates and strategically swapping between fixed and floating rate debt - Mitigates interest rate risk by monitoring rates and swapping fixed/floating rate debt as appropriate[165](index=165&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2022, with no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=33&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) CEO and CFO affirmed the effectiveness of disclosure controls and procedures as of March 31, 2022 - CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2022[166](index=166&type=chunk) [Changes in Internal Control Over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes occurred in internal control over financial reporting during Q1 2022 - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2022[167](index=167&type=chunk) [Part II. Other Information](index=33&type=section&id=Part%20II.%20Other%20Information) This section includes exhibits and signatures related to the Form 10-Q filing [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists Form 10-Q exhibits, including CEO and CFO certifications under Rule 13a-14(a) and Section 906, and interactive data files - Includes Certifications required by Rule 13a-14(a) of Chief Executive Officer (Exhibit 31.1) and Chief Financial Officer (Exhibit 31.2)[171](index=171&type=chunk) - Includes Certifications required by Section 906 of the Sarbanes-Oxley Act of Chief Executive Officer (Exhibit 32.1) and Chief Financial Officer (Exhibit 32.2)[171](index=171&type=chunk) - Includes Interactive data files (Exhibit 101)[171](index=171&type=chunk) [Signatures](index=34&type=section&id=Signatures) The report was signed by Russell Greenberg, Executive Vice President and Chief Financial Officer, on May 10, 2022 - Report signed by Russell Greenberg, Executive Vice President and Chief Financial Officer, on May 10, 2022[173](index=173&type=chunk)[174](index=174&type=chunk)

Inter Parfums, Inc. (NASDAQ:IPAR) Q4 2021 Earnings Conference Call March 2, 2022 11:00 AM ET Company Participants Russell Greenberg - EVP and CFO Jean Madar - CEO Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Wendy Nicholson - Citi Steph Wissink - Jefferies Hamed Khorsand - BWS Financial Operator Greetings, ladies and gentlemen, and welcome to the Inter Parfum Fourth Quarter 2021 Conference Call and Webcast. [Operator Instructions] Please note that this call is being recorded. I will now ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FORM 10-K (Mark one) For the fiscal year ended December 31, 2021 or ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file no. 0-16469 Inter Parfums, Inc. (Exact name of registrant as specified in its charter) | Delaware | 13-3275609 | | --- | --- | | (State or oth ...

Investor Presentation DECEMBER 2021 Fair Disclosure Statements in this presentation 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. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-lookin ...

Inter Parfums, Inc. (NASDAQ:IPAR) Q3 2021 Results Conference Call November 9, 2021 11:00 AM ET Company Participants Russell Greenberg - Executive Vice President and Chief Financial Officer Jean Madar - Chief Executive Officer Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Wendy Nicholson - Citi Hamed Khorsand - BWS Financial Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help ...