Inter Parfums, Inc. (NASDAQ:IPAR) Q2 2023 Earnings Conference Call August 9, 2023 11:00 AM ET Company Participants Karin Daly - VP, Equity Group, IR Jean Madar - Chairman and CEO Michel Atwood - CFO Conference Call Participants Ashley Helgans - Jefferies Korinne Wolfmeyer - Piper Sandler Hamed Khorsand - BWS Financial Linda Bolton-Weiser - D.A. Davidson Operator Greetings and welcome to the Inter Parfums 2023 Second Quarter Earnings Conference Call and Webcast. At this time, all participants are in a listen ...

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, 2023. 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 o ...

Financial Data and Key Metrics Changes - In the first quarter of 2023, the company reported a significant increase in net sales, with a growth of 24% compared to the previous year [10][30][70] - Gross margins expanded by 180 basis points, primarily driven by pricing actions [68][70] - Net income attributable to non-controlling interest rose by 53%, reflecting the growth and profitability of European operations [72] Business Line Data and Key Metrics Changes - U.S. based operations achieved a sales growth of 19%, building on a previous growth of 77% in the first quarter of 2022 [10] - European based operations saw a sales increase of 26% in U.S. dollars, or 29% in constant currency [21] - The Jimmy Choo brand outperformed Montblanc, with sales growth of 63% compared to 28% for Montblanc [36] Market Data and Key Metrics Changes - Sales in North America, the largest market, increased by 36% [1] - Sales in Central and South America rose by 43%, while Eastern Europe and the Middle East grew by 25% and 5%, respectively [35] - Sales in China were underwhelming, but improvements were noted post-lockdowns, albeit at a slower pace than expected [2][14] Company Strategy and Development Direction - The company plans to continue its extensive innovation program, focusing on brand extensions and new product launches throughout 2023 [38][39] - There is a commitment to invest 21% of net sales in promotion and advertising to drive brand equity and growth [50][74] - The company is diversifying its sourcing for components to improve supply chain resilience [113] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fragrance market's strength and the company's operational capabilities, indicating expectations for continued growth [34] - The company anticipates that sales growth will outpace earnings growth for the full year, with guidance of 15% topline and 12% EPS [50][74] - Management acknowledged challenges in the supply chain but noted improvements in sourcing strategies [65][113] Other Important Information - The company initiated a small share repurchase program, buying back 43,000 shares at a cost of $5.6 million in the first quarter [75] - The effective income tax rate for the quarter was 23%, down 100 basis points from the previous year [121] Q&A Session Summary Question: Will the distribution of the Fierce brand add to earnings? - Management confirmed that the distribution of the Fierce brand will be accretive to earnings [52][79] Question: What is the outlook for inventory and travel retail in China? - Management noted that while travel retail recovery is slow, there is still significant potential for growth in the duty-free market [56][64] Question: How is the company addressing supply chain challenges? - Management indicated improvements in sourcing and inventory management, allowing for better fulfillment of orders [65][113] Question: What are the expectations for marketing spend and ROI? - Management emphasized the importance of investing in marketing to support growth, with a focus on social media and brand desirability [89][111]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three months ended March 31, 2023, detailing financial position, performance, and cash flows with accompanying notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $851,601 | $787,724 | | **Total Assets** | $1,380,206 | $1,308,542 | | **Total Current Liabilities** | $362,169 | $344,567 | | **Total Liabilities** | $530,599 | $520,931 | | **Total Equity** | $849,607 | $788,146 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2023 vs Q1 2022 Income Statement (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Sales | $311,723 | $250,678 | | Gross Margin | $202,957 | $158,658 | | Income from Operations | $90,279 | $61,217 | | Net Income | $70,908 | $46,291 | | Net Income Attributable to Inter Parfums, Inc. | $54,068 | $35,299 | | Diluted EPS | $1.68 | $1.10 | | Dividends Declared per Share | $0.625 | $0.50 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 vs Q1 2022 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($7,358) | ($23,944) | | Net cash provided by (used in) investing activities | $61,644 | ($11,803) | | Net cash used in financing activities | ($12,555) | ($20,032) | | **Net increase (decrease) in cash** | **$44,342** | **($58,265)** | | **Cash and cash equivalents - end of period** | **$149,055** | **$110,122** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company continues to experience significant strains on its supply chain, affecting component procurement, transportation, and costs, with disruptions not expected to ease until the second half of 2023[30](index=30&type=chunk) - Key licensing updates include a new exclusive worldwide license with Lacoste effective January 2024, the non-renewal and expiration of the Dunhill license on September 30, 2023, and new fragrance launches under the Donna Karan and DKNY brands planned for 2024[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) Net Sales by Segment (in thousands) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | European Operations | $230,269 | $182,182 | | United States Operations | $81,454 | $68,502 | | **Total Net Sales** | **$311,723** | **$250,678** | - In Q1 2023, the company initiated a share repurchase program, buying back **43,060 shares** for **$5.58 million**, with plans to continue repurchasing shares throughout 2023[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strong Q1 2023 financial performance, highlighting sales growth, improved margins, and a robust liquidity position [Overview](index=19&type=section&id=Overview) - The company operates in two segments: European based operations (**74% of Q1 2023 sales**) and United States based operations (**26% of Q1 2023 sales**), achieving business growth by adding new brands and introducing new products[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) Sales Percentage by Largest Brands | Brand | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Montblanc | 20% | 19% | | Jimmy Choo | 20% | 15% | | Coach | 15% | 15% | | GUESS | 9% | 11% | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) - Net sales for Q1 2023 increased **24.4%** to **$311.7 million**, or **29%** at comparable foreign currency rates, with European operations sales growing **26.4%** and U.S. operations sales growing **18.9%**[93](index=93&type=chunk)[94](index=94&type=chunk) - Sales growth was strong across major brands, with Jimmy Choo up **63%**, Montblanc up **28%**, and Coach up **24%** YoY, and robust across all major geographic regions, led by North America (**+36%**) and Central/South America (**+43%**)[95](index=95&type=chunk)[100](index=100&type=chunk) - Consolidated gross margin improved, driven by pricing actions, favorable exchange rates for European operations, and a favorable brand/channel mix for U.S. operations[103](index=103&type=chunk)[104](index=104&type=chunk) - SG&A expenses increased due to higher promotion and advertising costs (**$35.2 million** in Q1 2023 vs. **$34.2 million** in Q1 2022) to support new product launches and build brand awareness[107](index=107&type=chunk)[110](index=110&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2023, the company had a strong liquidity position with **$238 million** in cash, cash equivalents, and short-term investments, and a working capital of **$489 million**[126](index=126&type=chunk)[127](index=127&type=chunk) - Cash used in operating activities was **$7.4 million**, an improvement from **$23.9 million** in the prior-year period, primarily due to higher net income despite increased working capital needs for accounts receivable and inventory[130](index=130&type=chunk) - In February 2023, the Board of Directors increased the annual dividend to **$2.50 per share**, with a quarterly dividend of **$0.625 per share** payable on June 30, 2023[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks, primarily foreign currency and interest rate exposures, using derivative financial instruments to minimize financial impact - The company uses foreign currency forward exchange contracts to hedge exposure on foreign currency-denominated receivables and future sales, particularly for its European operations where the functional currency is the euro[141](index=141&type=chunk) - As of March 31, 2023, the company held foreign currency forward exchange contracts totaling approximately **$37.0 million**, all with maturities of less than one year[144](index=144&type=chunk) - Interest rate risk is managed by monitoring rates and using interest rate swaps to convert variable-rate debt to fixed-rate debt or vice versa, as deemed appropriate[145](index=145&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[148](index=148&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[149](index=149&type=chunk) [Part II. Other Information](index=29&type=section&id=Part%20II.%20Other%20Information) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases conducted in open market transactions during Q1 2023 Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 1-31 | 16,060 | $110.63 | | February 1-28 | 0 | n/a | | March 1-31 | 27,000 | $140.87 | | **Total** | **43,060** | **$129.59** | [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and interactive data files - Filed exhibits include certifications by the CEO and CFO under Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act, as well as interactive data files (XBRL)[153](index=153&type=chunk)

Financial Data and Key Metrics Changes - In 2022, net sales reached $1.087 billion, a 24% increase from $880 million in 2021, with diluted EPS of $3.78, marking a 38% increase [31][27][60] - The fourth quarter of 2022 saw net sales of $311 million, a 47% increase from $211 million in the same period in 2021, with a 57% increase at comparable foreign exchange rates [27][31] - The company reported a working capital of $443 million, with a working capital ratio of 2.3:1, indicating a strong balance sheet [4] Business Line Data and Key Metrics Changes - U.S. operations achieved a sales growth of 58% in 2022, doubling sales compared to pre-COVID levels in 2019 [29][31] - Sales in Western Europe and Asia rose by 28% and 19% respectively, while Central and South America grew by 24% and the Middle East by 44% [20] - The Donna Karan and DKNY brands are expected to emerge as the second largest brand within U.S. operations, with production taken over from the former licensee [22] Market Data and Key Metrics Changes - The strength of the dollar negatively impacted sales but boosted gross margins, with European operations growing sales in U.S. dollars by 12% but 20% in constant currency [33][38] - The U.S. market grew about 12% last year, with the company outpacing this growth [73] - The company noted that only 3% of the Chinese population wears fragrance, indicating significant growth potential in this market [25] Company Strategy and Development Direction - The company plans to continue investing in marketing, targeting 21% of net sales for promotion and advertising to ensure long-term growth [41][78] - A 15-year exclusive fragrance license agreement with Lacoste was signed, expected to significantly contribute to future sales [35] - The company is focused on expanding its brand portfolio and enhancing its supply chain management through an upgraded ERP system [24][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Chinese market, noting slow recovery post-COVID and challenges in product registration [5][45] - The company anticipates 2023 to be an even better year with new product launches and brand extensions [55] - Management highlighted the ongoing demand for fragrances, particularly among younger consumers in emerging markets [77] Other Important Information - The company announced a 25% increase in its annual dividend from $2 to $2.50 per share, reflecting confidence in future business prospects [44] - Inventory levels increased by 46% from year-end 2021, with a strategy to maintain higher inventory to mitigate supply chain issues [43] Q&A Session Summary Question: Update on the situation in China post-reopening - Management noted that the start in China has been slow, with some reservations about the pace of recovery, although there was increased store traffic during the Chinese New Year [45][67] Question: Component shortages and their current status - Management acknowledged ongoing challenges with certain components but emphasized a strategy to diversify suppliers and maintain inventory levels [70] Question: Retail inventory levels in the U.S. - Management reported strong sell-through during the holiday season, leading to low inventory levels at retail partners, necessitating replenishment [51][73] Question: Durability of demand across regions - Management confirmed that demand remains strong, particularly in the U.S. and Europe, with continued growth in the fragrance category [75][88] Question: Marketing spend strategy for 2023 - Management reiterated the importance of maintaining marketing spend to support brand growth and ensure long-term shareholder returns [78][94]

Sales Performance - European based fragrance product sales represented approximately 68%, 75%, and 78% of net sales for 2022, 2021, and 2020, respectively[266]. - United States operations represented 32%, 25%, and 22% of net sales in 2022, 2021, and 2020, respectively[267]. - Total net sales for 2022 reached $1,086.7 million, a 24% increase from $879.6 million in 2021, with European based product sales growing by 12% and United States based product sales increasing by 58%[296]. - North America achieved a sales growth of 22% in 2022 compared to 2021, while Western Europe and Asia grew by 28% and 19%, respectively[302]. Brand Contributions - The largest brands contributed the following percentages to net sales in 2022: Montblanc 18%, Jimmy Choo 18%, Coach 15%, and GUESS 12%[269]. New Product Launches - The company plans to launch new fragrances under the Donna Karan and DKNY brands in 2024, following a long-term global licensing agreement[282]. - The company anticipates a solid line-up of new product launches in 2023, including the Moncler Collection and GUESS Uomo Acqua, with expectations for continued growth despite inflation and supply chain challenges[300]. Financial Performance - Gross profit margin for European operations was 68.2% in 2022, up from 66.6% in 2021, while the United States operations saw a gross profit margin of 54.7%, an increase from 53.1% in 2021[303][305]. - Operating margins improved to 17.9% in 2022, up from 16.8% in 2021, reflecting better sales performance and cost management[312]. - Net income attributable to European operations was $107.3 million in 2022, up from $80.7 million in 2021, while net income from U.S. operations increased to $43.7 million from $29.4 million in the same period[322]. Expenses - Selling, general and administrative expenses for European operations were $358.3 million in 2022, representing 48.2% of net sales, while U.S. operations reported $134.0 million, or 39.1% of net sales[308]. - Promotion and advertising expenses totaled $212.4 million in 2022, accounting for 19.5% of net sales, consistent with the previous year[309]. - Royalty expenses increased to $87.0 million in 2022, representing 8.0% of net sales, driven by new licenses and increased royalty-based product sales[310]. Cash Flow and Liquidity - Cash provided by operating activities was $115.2 million in 2022, with working capital aggregating $443 million and a working capital ratio of 2.3 to 1[331][325]. - The company has $256 million in cash, cash equivalents, and short-term investments as of December 31, 2022, with no liquidity issues expected[324]. - Cash dividends paid in 2022 totaled $79.8 million, reflecting a 100% increase in the annual dividend to $2.00 per share authorized in February 2022[341]. Risk Management - The company has implemented a risk management program to address foreign currency exchange rate fluctuations, primarily using forward exchange contracts[273]. - The company employs a controlled risk management program primarily using derivative financial instruments to address financial exposures[345]. - The company believes the risk of loss due to nonperformance by financial institutions related to foreign currency contracts is remote[347]. - Interest rate risk is managed by monitoring interest rates and determining whether to swap fixed interest rates for floating rate debt or vice versa[348]. Acquisitions and Investments - In December 2022, the company closed a transaction with Lacoste for an exclusive worldwide license for perfumes and cosmetics, effective January 2024 for 15 years[276]. - The acquisition of the future headquarters in Paris was financed by a 10-year €120 million (approximately $128.0 million) bank loan[286]. - The company entered into a $53.3 million (€50 million) loan agreement in December 2022 to finance the acquisition of the Lacoste trademark, with a maximum interest rate of 2% per annum[335]. Inventory and Supply Chain - Inventory levels increased by 49% from year-end 2021, with inventory days on hand rising to 231 days in 2022[331]. - Supply chain disruptions are expected to continue affecting operations through at least the first half of 2023 due to the COVID-19 pandemic[275]. Impairments and Adjustments - The company took a $6.8 million impairment charge on the Rochas fashion trademark in Q4 2022 after an independent valuation[283]. - The company reported that if estimates for sales returns and allowances were adjusted by 5%, gross profit could have varied by approximately $0.8 million, impacting net income by $0.5 million[295]. - The company recognized a loss of $1.9 million in 2022 from foreign currency exchange contracts, a significant change from a gain of $2.3 million in 2021[314]. ERP Transition - The company has transitioned to a new ERP system for U.S. operations, aimed at improving efficiency and scalability for new brands[300].

Financial Data and Key Metrics Changes - For Q3 2022, sales rose 7% to a record $280 million from $263 million in Q3 2021, with year-to-date sales increasing 16% to $776 million from $669 million [28] - The company raised its 2022 guidance to approximately $1.025 billion in net sales and diluted EPS of $3.40 [9] - The average dollar-euro exchange rate negatively impacted sales by 5% for the third quarter and nine-month period [27] Business Line Data and Key Metrics Changes - U.S. operations saw a year-to-date sales growth of 24%, driven by the launch of new fragrances and the addition of new brands [17] - European-based operations reported a gross margin of 69.5% for Q3, up from 66.6% a year earlier, while U.S. operations' gross margin rose to 53.8% from 53.1% [29][30] - The three largest brands, Montblanc, Jimmy Choo, and Coach, saw sales growth of 19%, 23%, and 17% respectively in euros, but only 6%, 9%, and 4% in dollars due to currency fluctuations [15] Market Data and Key Metrics Changes - Sales in Western Europe rose 34%, while overall sales in Asia increased by 23%, despite a decline in China due to lockdowns [12] - Sales in the Middle East and Central and South America grew by 41% and 28% respectively [12] - Eastern European sales decreased by 16% due to halted shipments to Russia [13] Company Strategy and Development Direction - The company is focusing on operational efficiencies and scaling to support future growth, with plans for new product launches in 2023 and 2024 [21][24] - Management emphasized the importance of maintaining advertising and promotional spending to ensure brand visibility and market share, even in a strong demand environment [54] - The company is diversifying its supply sources to mitigate component shortages and has planned price increases to offset rising costs [52][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as inflation, supply chain issues, and geopolitical tensions but expressed confidence in the company's resilience and growth potential [23] - The company anticipates a strong holiday season supported by significant advertising campaigns [10] - Management is conservative in its projections for the Chinese market in early 2023, expecting slow recovery [66] Other Important Information - The company reported a strong balance sheet with working capital of $459 million and a working capital ratio of 2.9:1 [38] - Inventory levels increased by 55% from year-end 2021, reflecting proactive measures to avoid shortages [40] Q&A Session Summary Question: Impact of special items on guidance - Management confirmed that the special items contributed approximately $0.14 per share to the guidance increase [48] Question: Organic sales growth in Q4 - Management expects about 18% growth in Q4, with an organic basis looking for 24% growth, noting $10 million in sales shifted from Q3 to Q4 due to component shortages [49] Question: Status of component shortages - Management indicated that while some improvements have been made, issues with glass and pumps persist, leading to planned price increases [52] Question: A&P spending in 2023 - Management emphasized the necessity of continued A&P spending to maintain brand visibility and market share despite strong demand [54] Question: Recovery of travel retail and China market - Management is cautiously optimistic about travel retail recovery but does not expect significant growth in the Chinese market in the first half of 2023 [66] Question: Inventory management for 2023 - Management plans to maintain higher inventory levels to mitigate risks associated with supply chain disruptions, targeting around five months of sales for inventory [78] Question: Market demand and competition - Management does not foresee a market shrinkage due to component issues, citing ongoing strong demand across various regions [82]

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 | | --- ...