Financial Data and Key Metrics Changes - The company reported net sales of $339 million, a 5% increase from Q1 2024, and a 7% increase on a like-for-like basis [13][14] - Gross margin expanded by 120 basis points to 63.7% due to favorable brand and channel mix [14] - Operating income was $75 million, a 10% increase from the prior year, resulting in an operating margin of 22% [14][15] - Net income attributable to U.S. operations was $9 million, slightly below the $10 million from the prior year [18] Business Line Data and Key Metrics Changes - European operations saw net sales rise by 7% or 9% excluding foreign exchange impact, with net income growing by 7% to $48 million [16] - U.S. operations experienced a 3% increase in net sales on a like-for-like basis, but reported a 1% decline due to the discontinuation of the Dunhill license [17] Market Data and Key Metrics Changes - The fragrance market remains strong, with the company noting a slight decline in sales for some brands but overall resilience in the fragrance segment compared to other beauty categories [4][28] - The U.S. market showed a slight decline of 2% for the quarter, but March and February were slightly up compared to the prior year [25][28] Company Strategy and Development Direction - The company is refining its brand portfolio to focus on high-potential brands and plans to exit some underperforming licenses [7] - New product launches are planned, including a new brand called Solferino and the acquisition of Annick Goutale [8] - The company is enhancing its omnichannel capabilities and transitioning to third-party logistics to reduce overhead costs [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the global fragrance market's strength and reaffirmed full-year guidance of $1.51 billion in net sales and EPS of $5.35 [21] - The company is actively planning to mitigate potential tariff impacts through supply chain adjustments and price increases [10][12] Other Important Information - The company has a strong balance sheet with $172 million in cash and cash equivalents [18] - A quarterly cash dividend of $0.80 per share is scheduled for payment on June 30, 2025 [20] Q&A Session Summary Question: Insights on U.S. business and destocking - Management noted that destocking issues from last year have largely abated, and the U.S. business was strong despite a tight market [24][25] Question: Global consumer fragrance trends - The first quarter was positive, but Europe faced challenges, particularly in France and Germany, while Asia showed mixed results [27][28] Question: Tariff exposure and gross margin progression - Estimated tariff impact is about 300 basis points, but interventions could reduce this by two-thirds, with no significant impact expected this year due to high inventory levels [36][37] Question: Luxury market performance and consumer behavior - The luxury segment continues to grow, with consumers seeking distinctive and premium products rather than just lower prices [50][51] Question: Sales guidance and market volatility - Sales guidance remains conservative due to market volatility and uncertainties related to tariffs and foreign exchange [62][65]

Core Insights - Interparfums reported revenue of $338.82 million for Q1 2025, a year-over-year increase of 4.6% and a surprise of +0.47% over the Zacks Consensus Estimate of $337.22 million [1] - The EPS for the same period was $1.32, compared to $1.27 a year ago, with an EPS surprise of +16.81% against the consensus estimate of $1.13 [1] Revenue Performance by Region - North America: Net sales of $123 million, exceeding the average estimate of $119.03 million, with a year-over-year change of +13.8% [4] - Western Europe: Net sales of $86.20 million, above the average estimate of $74.28 million, reflecting a +1.3% year-over-year change [4] - Eastern Europe: Net sales of $25.60 million, surpassing the average estimate of $20.80 million, with a significant year-over-year increase of +46.3% [4] - Central and South America: Net sales of $31 million, slightly below the average estimate of $31.22 million, showing a year-over-year decline of -9.9% [4] - Middle East and Africa: Net sales of $22.70 million, below the average estimate of $29.97 million, with a year-over-year decrease of -16.2% [4] - Asia/Pacific: Net sales of $50.30 million, compared to the average estimate of $56.36 million, reflecting a -2.9% year-over-year change [4] - Europe: Total net sales of $247.80 million, exceeding the average estimate of $242.70 million, with a year-over-year increase of +7.3% [4] - United States: Net sales of $94.30 million, below the average estimate of $96.76 million, indicating a -1.5% year-over-year change [4] Stock Performance - Interparfums shares have returned +8.6% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Interparfums reported quarterly earnings of $1.32 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and showing an increase from $1.27 per share a year ago, representing an earnings surprise of 16.81% [1][2] Financial Performance - The company achieved revenues of $338.82 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.47% and increasing from $323.96 million year-over-year [2] - Over the last four quarters, Interparfums has consistently surpassed consensus EPS estimates [2] Stock Performance - Interparfums shares have declined approximately 14.1% since the beginning of the year, compared to a decline of 3.3% for the S&P 500 [3] - The current Zacks Rank for Interparfums is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $358.05 million, and for the current fiscal year, it is $5.34 on revenues of $1.51 billion [7] - The trend of estimate revisions for Interparfums is currently mixed, which may change following the recent earnings report [6] Industry Context - The Consumer Products - Discretionary industry, to which Interparfums belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges ahead [8]

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) [Results of Operations and Financial Conditions](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Conditions) The company announced its first quarter 2025 financial results by incorporating specific sections of its April 23, 2025 press release (Exhibit 99.1) - The company filed its Q1 2025 operational and financial results by referencing its press release (Exhibit 99.1)[4](index=4&type=chunk) [Regulation FD Disclosure](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) The company is publicly disclosing certain information from its press release (Exhibit 99.1) under Regulation FD - Certain information from the press release (Exhibit 99.1) is filed under Regulation FD to ensure fair disclosure[4](index=4&type=chunk) [Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the filed exhibit, a press release dated April 23, 2025 (Exhibit 99.1), specifying relevant paragraphs for financial results and disclosures [Summary of Press Release (Exhibit 99.1)](index=2&type=section&id=Exhibit%2099.1%20Press%20Release%20Summary) The press release details Q1 2025 net sales, reaffirms full-year 2025 guidance, and outlines future plans and challenges including product launches, tariffs, and price increases - The press release contains information on net sales for the first quarter ended March 31, 2025[5](index=5&type=chunk) - The company reaffirmed its previously announced guidance for the full year 2025[5](index=5&type=chunk) - Identified business challenges for 2025 include tariffs and price increases on certain lines planned for August 2025[5](index=5&type=chunk) - Future plans include a new product launch for Montblanc and potential future sales growth for the brand[5](index=5&type=chunk) - The company will release full Q1 2025 results on May 5, 2025, and host a conference call for investors on May 6, 2025[5](index=5&type=chunk)

Financial Performance - Net sales for the three months ended March 31, 2025, increased by 5% to $338.8 million compared to $324.0 million in the same period of 2024[98] - European based product sales rose by 7% to $247.8 million, driven by strong performances from Jimmy Choo (up 36%), Coach (up 11%), and Lacoste (up 30%) compared to the prior year[99] - United States based product sales decreased by 1% to $94.3 million, impacted by the discontinuation of the Dunhill license, which had a 4% negative effect on sales[100] - North America net sales increased by 14% to $123.0 million, while sales in Eastern Europe surged by 46% to $25.6 million compared to the prior year[104] - The company's largest brands accounted for 76% of net sales, with Jimmy Choo, Coach, and Montblanc being the top contributors[87] - Net income attributable to Interparfums, Inc. was $42.5 million for the three months ended March 31, 2025, compared to $41.0 million in the prior year[125] Profitability and Margins - Gross profit margin as a percentage of net sales improved to 63.7% for the three months ended March 31, 2025, compared to 62.5% in the same period of 2024[105] - Operating margins improved to 22.2% for the three months ended March 31, 2025, up from 21.0% in the prior year[117] Expenses - Selling, general and administrative expenses as a percentage of net sales remained relatively flat at 41.6% for the three months ended March 31, 2025, compared to 41.5% in the prior year[111] - Selling, general and administrative expenses for European operations increased by 6.2% to represent 38.7% of net sales for the three months ended March 31, 2025, compared to 39.1% in the prior year[112] - For U.S. operations, selling, general and administrative expenses rose by 2.1% to 47.6% of net sales for the same period, up from 46.0% in the prior year, driven by increased employee-related costs and promotional spending[112] - Promotion and advertising expenses totaled $51.5 million, representing 15.2% of net sales for the three months ended March 31, 2025, compared to $48.3 million and 14.9% in the prior year[113] Cash Flow and Liquidity - Cash and cash equivalents totaled $171.9 million as of March 31, 2025, with no liquidity issues expected[128] - Working capital aggregated $604.6 million as of March 31, 2025, with approximately 78% held by European operations[129] - Cash used in operating activities was $7.4 million for the three months ended March 31, 2025, significantly lower than $52.0 million in the prior year[136] Dividends and Shareholder Returns - The Board of Directors increased the annual dividend to $3.20 per share in February 2025, with the next quarterly dividend of $0.80 per share payable on June 30, 2025[141] Foreign Currency and Risk Management - Approximately 50% of net sales from European operations are denominated in U.S. dollars, while costs are primarily incurred in euros, leading to foreign currency exposure[93] - As of March 31, 2025, the company had foreign currency forward exchange contracts valued at approximately USD $161 million with maturities of less than one year[148] - The company does not engage in trading foreign currency forward exchange contracts or interest rate swaps, focusing instead on risk management through controlled programs[144] - The company aims to minimize the effects of foreign exchange rate movements on receivables and cash flows, with hedging activities aligned with identified exposures[145] - The company monitors interest rates to determine whether to swap fixed interest rates for floating rate debt or vice versa, thereby mitigating interest rate risk[149] Future Plans - The company plans to launch several new products and brand extensions throughout 2025, including Ferragamo's Fiamma and Roberto Cavalli Serpentine[101] Economic Impact - Inflation rates in the United States and foreign countries did not significantly impact the company's operating results for the three months ended March 31, 2025[142]

Core Insights - Interparfums, Inc. reported a 5% increase in net sales for Q1 2025, reaching $339 million compared to $324 million in Q1 2024, reaffirming its sales and earnings guidance for 2025 [1][2][15] Financial Performance - Net sales for Q1 2025 were $339 million, a 5% increase from $324 million in Q1 2024 [2] - Gross margin improved to 63.7% from 62.5%, reflecting a 120 basis point increase [2][8] - Operating income rose by 10% to $75 million, with an operating margin of 22.2%, up from 21.0% [2][12] - Net income attributable to Interparfums, Inc. was $42 million, a 4% increase from $41 million in the previous year [2][28] - Diluted earnings per share (EPS) increased by 4% to $1.32 from $1.27 [2][28] Market Performance - Organic sales growth, excluding foreign exchange impacts and the Dunhill license discontinuation, was 7% [4] - North America and Western Europe saw sales increases of 14% and 1%, respectively, while Eastern Europe experienced a significant rebound with a 46% increase [5] - Asia/Pacific sales declined by 3%, and Central and South America saw a 10% decline, attributed to high prior year bases [5] Strategic Initiatives - The company renewed its partnership with Coach for an additional five years, extending the license until June 30, 2031 [6] - Interparfums is expanding its portfolio with the launch of the Solférino collection and acquisitions of Off-White and Annick Goutal, set for commercialization in 2026 [7] Financial Position - As of March 31, 2025, the company had $172 million in cash and cash equivalents, with working capital of $605 million [13] - SG&A expenses as a percentage of net sales were 41.6%, reflecting a slight increase due to higher advertising and promotional spending [9][11] - The company invested $52 million in A&P initiatives, representing 15.2% of net sales, a 7% increase from the prior year [11] Guidance - Interparfums reaffirms its 2025 guidance of net sales of $1.51 billion and earnings per diluted share of $5.35, both reflecting a 4% increase [15]

Core Insights - Inter Parfums, Inc. (IPAR) is expected to report a decline in earnings for Q1 2025, with a consensus estimate of $1.13 per share, reflecting an 11% decrease from $1.27 per share in the same quarter last year [1][7] Group 1: Earnings and Sales Performance - The company achieved a 5% increase in net sales for Q1 2025, totaling $339 million, with a 7% organic sales growth driven by strong demand for its fragrances and innovations [4] - U.S.-based net sales reached $94 million, showing a 1% year-over-year decline, while organic sales increased by 3% [6] - European net sales were $248 million, marking a 7% increase from the previous year, supported by strong performances from brands like Jimmy Choo, Coach, and Lacoste [5] Group 2: Strategic Initiatives and Market Position - Inter Parfums is focusing on innovation and frequent product launches, which have helped the company remain resilient in a competitive market [2] - The growing e-commerce presence is enhancing customer reach and contributing positively to sales results [2] Group 3: Challenges and Risks - Elevated selling, general and administrative (SG&A) expenses are impacting profit margins due to increased investments in advertising and promotional activities [3] - The company is vulnerable to foreign exchange rate fluctuations, which can affect profitability [3]

Wall Street expects a year-over-year decline in earnings on higher revenues when Interparfums (IPAR) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the ...

Core Insights - Interparfums, Inc. (IPAR) reported a strong sales performance for Q1 2025, achieving a 5% increase in net sales to $339 million, with a 7% organic growth driven by brand demand and innovations [2][12] - The company reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and earnings per share of $5.35, both reflecting a 4% year-over-year increase [12] Sales Performance - The Europe-based net sales reached $248 million, marking a 7% increase year-over-year, with significant contributions from brands like Jimmy Choo (36% growth), Coach (11% growth), and Lacoste (30% growth) [3][4] - In the U.S., net sales were $94 million, showing a 1% decline year-over-year, although organic sales increased by 3% [7] Brand Contributions - Jimmy Choo's growth was attributed to strong demand for its I Want Choo and Jimmy Choo Man lines [4] - Coach benefited from the successful launch of Coach Man Extreme and sustained demand for its core products [4] - Lacoste continued to perform well in its second year under Interparfums' management [4] - Donna Karan/DKNY fragrances saw a 5% sales increase, while MCM grew by 17% due to the Park Collection rollout [8] Market Challenges and Strategies - The company is navigating global market complexities, including new tariffs, and is making strategic supply chain adjustments [10] - Interparfums plans to implement selective price increases across certain fragrance lines starting August 2025 to address rising costs [11]

Core Insights - Interparfums, Inc. reported a 5% increase in net sales for Q1 2025, reaching $339 million compared to $324 million in Q1 2024 [2][5] - The company reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and earnings per diluted share of $5.35, both reflecting a 4% increase [9] Sales Performance - European based net sales increased by 7% to $248 million, driven by strong performances from brands such as Jimmy Choo (up 36%), Coach (up 11%), and Lacoste (up 30%) [3][6] - United States based net sales saw a slight decline of 1% to $94 million, although organic sales increased by 3% when excluding the impact of the discontinued Dunhill license [3][7] Market Dynamics - The average dollar/euro exchange rate for Q1 2025 was 1.05, compared to 1.09 in Q1 2024, resulting in a negative 1% foreign exchange impact [4] - The company is addressing new tariffs through supply chain adjustments and plans selective price increases in August 2025 to mitigate rising costs [8] Brand Performance - Donna Karan/DKNY fragrance sales rose by 5%, while MCM sales grew by 17% due to the Park Collection rollout [8] - Roberto Cavalli experienced a 28% increase in net sales following the start of its fragrance distribution in February 2024 [8] Future Outlook - The company is optimistic about the fragrance market's strength and expects Montblanc fragrance sales to increase with the upcoming launch of Montblanc Explorer Extreme [6][8] - Management emphasized the importance of a diversified brand portfolio and robust innovation pipeline for strong performance throughout 2025 [5][8]