Inter Parfums(IPAR) - 2025 Q3 - Quarterly Results

2025 Third Quarter Net Sales Announcement Interparfums reported 1% consolidated net sales growth for Q3 and year-to-date 2025, reaching $430 million and $1,102 million, driven by prestige fragrances Overview of Net Sales Performance Consolidated net sales grew 1% for Q3 and year-to-date 2025, reaching $430 million and $1,102 million, with European operations showing stronger growth Net Sales Performance ($ in millions) | Net Sales ($ in millions) | 2025 (3 Months) | 2024 (3 Months) | % Change (3 Months) | 2025 (9 Months) | 2024 (9 Months) | % Change (9 Months) | | :------------------------ | :-------------- | :-------------- | :------------------ | :-------------- | :-------------- | :------------------ | | Total Interparfums, Inc. | $430 | $425 | 1% | $1,102 | $1,091 | 1% | | European based net sales | $295 | $282 | 5% | $784 | $739 | 6% | | United States based net sales* | $137 | $146 | (6%) | $327 | $362 | (10%) | | Eliminations of intercompany sales | ($3) | ($4) | n/a | ($9) | ($11) | n/a | - The average dollar/euro exchange rate for Q3 2025 was 1.17 (vs 1.10 in Q3 2024), leading to a positive 2% foreign exchange impact[3] - For the first nine months of 2025, the rate was 1.12 (vs 1.09 in 2024), resulting in a positive 1% foreign exchange impact[3] Management's Overall Commentary Management reported a record third quarter with 1% consolidated sales growth, driven by luxury fragrances despite selective consumer spending and cautious retailer inventory - Achieved a record third quarter with consolidated sales growth of 1% for both Q3 2025 and year-to-date periods[5] - Growth was supported by ongoing consumer interest in prestige and luxury fragrances[5] - Growth was more moderate than expected due to more selective consumer spending and cautious retailer inventory approaches[5] Detailed Sales Performance Analysis A detailed analysis of consolidated and segmental net sales reveals varied performance across European and United States-based operations Consolidated and Segmental Net Sales European operations grew 5% in Q3 and 6% year-to-date, while US operations declined 6% in Q3 and 10% year-to-date, impacted by the Dunhill license discontinuation Segmental Net Sales ($ in millions) | Segment | 2025 (3 Months) | 2024 (3 Months) | % Change (3 Months) | 2025 (9 Months) | 2024 (9 Months) | % Change (9 Months) | | :------------------------ | :-------------- | :-------------- | :------------------ | :-------------- | :-------------- | :------------------ | | European based net sales | $295 | $282 | 5% | $784 | $739 | 6% | | United States based net sales* | $137 | $146 | (6%) | $327 | $362 | (10%) | - United States based organic net sales decreased by 6% year-to-date, excluding the impact of the discontinued Dunhill license[3] European Based Operations Performance European operations achieved robust growth, with strong contributions from Jimmy Choo, Lacoste, Coach, Roberto Cavalli, and MCM, despite a slight decline in Montblanc sales Jimmy Choo Jimmy Choo brand sales grew significantly in Q3 and year-to-date, driven by the strong performance of the 'I Want Choo' franchise - Jimmy Choo brand grew 16% in Q3 and 9% year-to-date, primarily due to the strong performance of the 'I Want Choo' franchise[6] Lacoste Lacoste fragrances are on track to achieve $100 million in sales this year, demonstrating strong performance in its second year - Lacoste fragrances are on track to achieve $100 million in sales this year, in its second year under Interparfums' management[6] Coach Coach brand sales increased in Q3 and year-to-date, benefiting from established lines and the successful launch of 'Coach Gold' - Coach brand sales increased 6% for Q3 and 18% year-to-date, with continued success from established lines and good performance from the new 'Coach Gold' innovation[7] Montblanc Montblanc brand sales experienced a slight decline in Q3 and year-to-date despite new product releases like 'Montblanc Explorer Extreme' - Montblanc brand sales were slightly lower in Q3, leading to a 6% decline year-to-date, despite new product releases like 'Montblanc Explorer Extreme' and 'Montblanc Signature Elixir'[8] Roberto Cavalli Roberto Cavalli fragrance sales significantly rose in Q3 and year-to-date, driven by strong innovation and new product launches - Roberto Cavalli fragrance sales rose 44% during Q3 and 33% year-to-date, benefiting from strong innovation including new product launches[13] MCM MCM fragrance sales increased in Q3 and year-to-date, propelled by the ongoing momentum of the 'MCM Collection' debut - MCM fragrance sales rose 6% for Q3 and 9% year-to-date, driven by ongoing momentum from the debut of the 'MCM Collection'[13] United States Based Operations Performance US operations experienced declines, with organic net sales decreasing 6% year-to-date, primarily due to the Dunhill license phase-out and strong prior-year comparables for GUESS and Donna Karan/DKNY GUESS GUESS fragrance sales moderately declined in Q3 due to a high prior-year base, but are expected to grow in Q4 - GUESS fragrance sales declined moderately by 3% in Q3 due to a high prior-year base and innovation phasing, but the brand is poised for sales growth in Q4[10] Donna Karan/DKNY Donna Karan/DKNY sales declined in Q3 2025 due to robust prior-year growth, but are projected to increase in Q4 - Donna Karan/DKNY sales declined 14% during Q3 2025 due to robust prior-year growth, but are expected to grow in Q4 based on planned shipments and holiday popularity[12] Dunhill (Discontinued Impact) US-based sales, excluding the Dunhill license phase-out which concluded in August 2024, decreased 5% for Q3 and 6% year-to-date - Sales by United States based operations, excluding the Dunhill fragrances phase-out, decreased 5% for Q3 and 6% year-to-date[9] - The phase-out of the Dunhill license concluded in August 2024[9] Strategic Outlook and Future Plans Interparfums outlines its strategic direction, focusing on agility, pricing actions, and long-term growth to expand market share Strategic Outlook and Future Plans The company anticipates the full impact of strategic agility and pricing actions in Q4 2025 and 2026, reinforcing its commitment to long-term growth and market share expansion - Expects to see the full impact of agility and pricing actions reflected in sales in Q4 2025 and through 2026[14] - Continues to focus on long-term strategy, innovative product development, and high service levels for global retail and distribution partners[14] - This approach positions the company to perform well and expand market share as the industry evolves[14] Corporate Information This section provides details on upcoming financial result announcements, company background, forward-looking statements, and contact information Conference Call Details Interparfums will release Q3 2025 financial results on November 5, 2025, with a conference call scheduled for November 6, 2025, at 11:00 am ET - Financial results for Q3 and nine months ended September 30, 2025, will be issued on Wednesday, November 5, 2025, after market close[15] - A conference call to discuss results and operations will be hosted on Thursday, November 6, 2025, at 11:00 am ET[15] - A live audio webcast will be available in the 'Events' tab of the Company's website, with replay available for approximately 90 days[16] About Interparfums, Inc. Interparfums, Inc., established in 1982, is a global fragrance company producing and distributing prestige products under license across European and US segments, managing over 20 brands - Operates in the global fragrance business since 1982, producing and distributing prestige fragrance and related products under license[18] - Manages business in two operating segments: European based operations (through 72% owned Interparfums SA) and United States based operations[18] - Portfolio includes brands like Abercrombie & Fitch, Coach, Jimmy Choo, Lacoste, Montblanc, Roberto Cavalli, and GUESS, distributed in over 120 countries[19] - Goutal and Off-White will join the portfolio in 2026[19] Forward-Looking Statements This release contains forward-looking statements subject to inherent risks and uncertainties, with actual results potentially differing materially, and no intent to update this information - Statements not historical in nature are forward-looking and subject to risks and uncertainties[20] - Actual events or results may differ materially from those indicated by forward-looking statements due to various factors, including those discussed in the company's Form 10-K[20] - Interparfums does not intend to and undertakes no duty to update the information contained in this press release[20] Contact Information Contact details are provided for Interparfums, Inc.'s Chief Financial Officer and Investor Relations Counsel Corporate Contact Information | Contact | Name | Title/Role | Phone | Email/Website | | :-------- | :----------- | :------------------------ | :---------- | :-------------------------------- | | Interparfums, Inc. | Michel Atwood | Chief Financial Officer | (212) 983-2640 | www.interparfumsinc.com | | The Equity Group Inc. | Karin Daly | Investor Relations Counsel | (212) 836-9623 | kdaly@theequitygroup.com / www.theequitygroup.com |