Inter Parfums(IPAR) - 2024 Q4 - Annual Report

Sales Performance - European based product sales reached $953.0 million in 2024, a 10% increase from$ 863.4 million in 2023[272] - United States based product sales grew to $511.3 million in 2024, reflecting a 12% increase from$ 455.8 million in 2023[272] - Total net sales for 2024 amounted to $1,452.3 million, a 10% increase compared to$ 1,317.7 million in 2023[272] - The addition of Lacoste brand contributed $85 million in net sales in its first year, exceeding expectations[273] - Jimmy Choo brand sales increased by 7% in 2024, driven by the success of the I Want Choo franchise[273] - GUESS brand sales rose by 13% in 2024, supported by the success of new product launches[274] - North America achieved sales growth of 6% in 2024, with net sales of$ 541.9 million compared to $511.7 million in 2023[278] - Western Europe saw a significant sales increase of 21% in 2024, reaching$ 364.3 million, up from $301.2 million in 2023[278] Financial Metrics - The overall gross margin percentage for the company was 63.9% in 2024, slightly up from 63.7% in 2023[280] - Selling, general and administrative expenses as a percentage of net sales were 44.7% in 2024, remaining flat compared to 44.6% in 2023[285] - Promotion and advertising expenses totaled$ 280.5 million in 2024, representing 19.3% of net sales[288] - Royalty expenses increased to $117.8 million in 2024, accounting for 8.1% of net sales[289] - The company's operating margins were 18.9% in 2024, down from 19.1% in 2023[291] - The consolidated effective tax rate was 24.2% in 2024, a decrease from 24.8% in 2023[296] Income and Cash Flow - Net income attributable to Interparfums, Inc. was$ 164.4 million in 2024, up from $152.7 million in 2023 and$ 120.9 million in 2022, reflecting a growth of 7.8% year-over-year[299] - Net income attributable to European based operations was $140.1 million in 2024, an increase of 12.1% from$ 124.0 million in 2023, while net income from United States operations rose to $68.9 million, up 8.3% from$ 63.8 million in 2023[300] - Cash provided by operating activities totaled $187.6 million in 2024, significantly higher than$ 105.8 million in 2023 and $73.0 million in 2022[308] - As of December 31, 2024, the company had$ 234.7 million in cash and cash equivalents, indicating a strong liquidity position[302] Debt and Financing - Long-term debt, including current maturities, was $157.3 million as of December 31, 2024[293] - The company entered into a$ 41.6 million loan agreement in July 2024 to improve its short-term cash position[293] - The company entered into a $41.6 million loan agreement in July 2024, and an additional$ 51.9 million loan agreement was established to finance the acquisition of the Lacoste trademark[313] Inventory and Operations - Working capital was $582 million as of December 31, 2024, with approximately 76% of total assets held by European based operations[303] - Inventory levels increased by 5% in 2024 to support sales growth, with finished goods comprising 63% of total inventory as of December 31, 2024[308] - The diversified brand portfolio and agile operating model are expected to help the company gain market share despite normalizing growth rates[275] Future Plans - The company plans to expand e-commerce channels and has a strong pipeline of new product launches for 2025[275] - New product launches planned for 2025 include GUESS Iconic, Ferragamo Fiamma, and a proprietary brand Solférino with 10 niche fragrances[275] - The company aims to potentially acquire new brands or licenses to enhance its portfolio, although no agreements are currently certain[276] Dividends and Acquisitions - The annual dividend was increased to$ 3.00 per share in February 2024, with a further increase to $3.20 per share planned for February 2025[315] - The company acquired the Off-White brand names and registered trademarks for$ 16 million in December 2024, with an additional $2 million payable over two years[311] Currency Management - The company has foreign currency contracts totaling approximately$ 100 million with maturities of less than one year to manage foreign exchange risks[321]