[Interparfums, Inc. Form 8-K Current Report (July 23, 2025)](index=1&type=section&id=Form%208-K%20Current%20Report) [Q2 & H1 2025 Preliminary Sales Results](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Conditions) Interparfums, Inc. announced preliminary net sales results for the second quarter and first half of 2025 - The company announced net sales results for the second quarter and first six months ended June 30, 2025[5](index=5&type=chunk) [Business Operations and Brand Performance](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) The company provided commentary on market outlook, key brand performance, and future plans, noting minimal impact from the Dunhill license discontinuation - Confidence expressed in the market outlook for the remainder of the year[5](index=5&type=chunk) - Commentary provided on potential future sales levels for Lacoste and Montblanc for the remainder of the year[5](index=5&type=chunk) - Marketing plans and innovation outlined for Guess and Donna Karan/DKNY for the remainder of the year[5](index=5&type=chunk) - Discontinuation of the Dunhill license is expected to have minimal impact on future quarter-over-quarter comparisons[5](index=5&type=chunk) [Future Outlook and Corporate Announcements](index=2&type=section&id=Future%20Outlook%20and%20Corporate%20Announcements) Interparfums outlined its forward-looking strategy, including pricing, innovation, and managing foreign exchange, alongside upcoming corporate event announcements - Future plans include pricing increases, planned innovation pipelines, and managing foreign exchange headwinds[5](index=5&type=chunk) Upcoming Corporate Events | Event | Date | | :--- | :--- | | Q2 & H1 2025 Earnings Release | Tuesday, August 5, 2025 | | Conference Call | August 6, 2025 | [Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists exhibits filed with the Form 8-K, primarily the press release containing detailed financial results and business updates - Exhibit 99.1, a press release dated July 23, 2025, is filed with this report[5](index=5&type=chunk)

Core Insights - Interparfums, Inc. reported a slight decline in net sales for the second quarter of 2025, with total sales at $334 million, down 2% from $342 million in the same period last year, while year-to-date sales increased by 1% to $673 million from $666 million [2][4] Sales Performance - European based net sales increased by 6% to $241 million in Q2 2025 from $226 million in Q2 2024, and year-to-date sales rose by 7% to $488 million from $457 million [2][6] - United States based net sales saw a significant decline of 20% to $96 million in Q2 2025 from $120 million in Q2 2024, with year-to-date sales down 12% to $190 million from $216 million [2][8] - The decline in U.S. sales was primarily attributed to the discontinuation of the Dunhill license, which had an 8 percentage-point impact on sales [8] Brand Performance - Sales for established lines under Lacoste and Coach performed strongly, with Coach for Men Eau de Parfum and Coach Women Gold achieving sales increases of 59% and 42%, respectively [6] - Jimmy Choo fragrance sales declined by 20% in Q2 2025 compared to the previous year, but year-to-date sales are up 5% due to new product introductions [7] - Roberto Cavalli fragrance sales grew by 23% in Q2 2025 and 25% year-to-date, benefiting from integration efforts [9] Management Commentary - The CEO noted that consolidated sales on an organic basis grew by 3% for the first half of 2025, despite a moderate decline in Q2 sales due to order timing shifts [4] - The company remains optimistic about the U.S. market and the resilience of its brand portfolio, viewing current challenges as temporary [5][10]

Core Insights - Interparfums, Inc. has signed an exclusive fragrance license agreement with Longchamp, effective through December 31, 2036 [1] - Interparfums SA will handle the creation, development, production, and distribution of Longchamp-branded fragrances, with the first launch anticipated in 2027 [2] Company Overview - Interparfums, Inc. operates in the global fragrance market since 1982, managing a diverse portfolio of prestige fragrance brands under license agreements [5] - The company has two operating segments: European operations through its 72% owned subsidiary Interparfums SA, and U.S. operations through wholly owned subsidiaries [5] Longchamp Overview - Longchamp, founded in 1948, is known for its values of authenticity, energy, and optimism, and has expanded its product offerings to include travel accessories, handbags, and more [4] - The brand is committed to sustainability and has a strong global presence with over 400 stores in 80 countries [4] Strategic Importance - The partnership with Longchamp is seen as a strategic move to enhance Interparfums' fragrance portfolio and expand its market presence [3] - Both companies express optimism about the collaboration, highlighting the potential for innovation and brand value enhancement [3]

Core Viewpoint - Interparfums (IPAR) shares have increased by approximately 14% over the past month, outperforming the S&P 500, but recent estimates have trended downward, raising questions about the sustainability of this positive trend leading up to the next earnings release [1][2]. Group 1: Earnings Report and Stock Performance - The last earnings report for Interparfums was about a month ago, during which the stock saw a notable increase in value [1]. - The stock's performance has been strong relative to the S&P 500, indicating positive market sentiment [1]. Group 2: Estimates and Scores - Fresh estimates for Interparfums have trended downward over the past month, suggesting a potential shift in market expectations [2][4]. - The company currently holds an average Growth Score of C, a Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [3]. - The aggregate VGM Score for Interparfums is D, indicating overall underperformance across multiple investment strategies [3]. Group 3: Outlook - The downward trend in estimates indicates a broader negative sentiment regarding the stock's future performance [4]. - Interparfums has a Zacks Rank of 3 (Hold), suggesting that the stock is expected to deliver an in-line return in the coming months [4].

Core Viewpoint - Interparfums' international revenue performance is crucial for assessing its financial resilience and growth prospects, especially in the context of a global economy [2][3]. Revenue Performance Summary - The total revenue for Interparfums in the quarter ending March 2025 was $338.82 million, reflecting a 4.6% increase [4]. - Breakdown of international revenues shows varied performance across regions, with Asia/Pacific contributing $50.3 million (14.85%), a decrease of 10.74% from expectations [5]. - Central and South America generated $31 million (9.15%), slightly below the consensus estimate by 0.71% [6]. - Western Europe performed strongly with $86.2 million (25.44%), exceeding projections by 16.05% [7]. - Middle East and Africa accounted for $22.7 million (6.70%), falling short of expectations by 24.25% [8]. - Eastern Europe showed a positive trend with $25.6 million (7.56%), surpassing estimates by 23.11% [9]. Future Projections - Analysts anticipate total revenue of $355.75 million for the current fiscal quarter, a 4% increase year-over-year, with expected contributions from various regions [10]. - For the entire year, total revenue is forecasted at $1.51 billion, representing a 3.8% improvement from the previous year, with specific regional contributions outlined [11][12]. Market Insights - The reliance on international markets presents both opportunities and risks for Interparfums, making it essential to monitor international revenue trends for future forecasts [13]. - Analysts are closely observing these patterns due to the complexities of global interdependence and geopolitical factors that can influence earnings [14].

Core Insights - Interparfums, Inc. (IPAR) reported first-quarter 2025 results with earnings of $1.32 per share, a 4% increase from $1.27 in the prior year, surpassing the Zacks Consensus Estimate of $1.13 per share [3] - Consolidated net sales reached $339 million, up 5% from $324 million year-over-year, with a 7% organic growth driven by strong performance in key fragrance brands [3][4] - 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 [13] Financial Performance - The gross margin improved to 63.7%, a 120-basis point increase from 62.5% in the prior year, attributed to a favorable brand and channel mix [6] - Operating income rose 10% to $75 million, with the operating margin expanding to 22.2%, up from 21% in the previous year [10] - Selling, general and administrative (SG&A) expenses were 41.6% of net sales, a slight increase of 10 basis points year-over-year, driven by higher advertising and promotional spending [7] Regional Sales Performance - North America and Western Europe saw sales increases of 14% and 1%, respectively, while Eastern Europe rebounded with a 46% rise in sales [4] - Sales in the Asia/Pacific region declined by 3%, Central and South America decreased by 10%, and the Middle East and Africa experienced a 16% decline, largely due to macroeconomic challenges and the exit from the Dunhill license [5] Inventory and Supply Chain Management - IPAR maintained steady inventory levels while accelerating raw material conversion to finished goods in anticipation of potential supply chain constraints [2] - The company is realigning its supply chain with key markets and exploring alternative sourcing outside China, planning selective price increases of 4% to 6% in August 2025 to offset recent tariffs [2] Financial Health - At the end of the quarter, IPAR had cash and cash equivalents of $96.6 million, long-term debt of $107.4 million, and total equity of $1,007.5 million [12] - The company announced a cash dividend of 80 cents per share, payable on June 30, 2025 [12]

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [2][9] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales to find attractive investment opportunities [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [4] - The Momentum Score assists investors in capitalizing on price trends, utilizing factors like recent price changes and earnings estimate shifts [5] - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth, and momentum characteristics [6] Group 2 - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also possess Style Scores of A or B to maximize potential returns [9][10] - Interparfums, Inc. (IPAR) is highlighted as a company to watch, currently rated 3 (Hold) with a VGM Score of B, and a Growth Style Score of A, indicating a forecasted earnings growth of 3.1% for the current fiscal year [11][12]

Financial Data and Key Metrics Changes - The company reported net sales of $339 million, a 5% increase from the first quarter of 2024, and a 7% increase on a like-for-like basis [14][15] - Gross margin expanded by 120 basis points to 63.7% from the prior year period [15] - Operating income was $75 million for the quarter, a 10% increase from the prior year, resulting in an operating margin of 22% [15] Business Line Data and Key Metrics Changes - European operations saw net sales rise by 7% or 9% excluding foreign exchange impacts, with net income attributable to these operations growing 7% to $48 million [17] - 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 [18][19] Market Data and Key Metrics Changes - The fragrance market remains strong, with the company noting that fragrance continues to grow compared to other beauty segments like makeup and skincare [30] - 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 [28][30] Company Strategy and Development Direction - The company is refining its brand portfolio to focus on high-potential brands and plans to exit some smaller or underperforming brands [8][9] - A new brand called Solferino is set to launch in July, and the company will assume full ownership of Off White brand names in 2026 [8][9] - The acquisition of the Annick Goutale brand is planned for 2026, with preparations already underway [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment, reaffirming full-year guidance for 2025 of $1.51 billion in net sales and EPS of $5.35 per share [23] - The company is actively planning to mitigate potential impacts from tariffs through adjustments in supply chain and pricing strategies [11][13] Other Important Information - The company has a strong balance sheet with $172 million in cash and cash equivalents and working capital of $600 million [19] - The company is focused on improving its MSCI score, recently achieving a BBBB rating and targeting BBBBBB in the next major update [14] Q&A Session Summary Question: Insights on U.S. Business and Retailer Destocking - Management noted that destocking at retailers has largely abated, and there is no significant disconnect between sell-in and sell-out [27][28] Question: Global Consumer Perspective on Fragrance Trends - Management indicated that while the first quarter was not as strong as last year, the fragrance business is still growing, with challenges noted in Europe [30][31] Question: Tariff Exposure and Gross Margin Progression - Management estimated a potential 300 basis point impact from tariffs but expects to mitigate this through various interventions [40][41] Question: Luxury and Premium Portfolio Strategy - Management believes the luxury category will continue to outperform, with a focus on premiumization and distinctive offerings [52][53]

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]