Inter Parfums(US:IPAR)2025-11-05 21:26Sales Performance - European based fragrance product sales represented approximately 70% of net sales for the nine months ended September 30, 2025, compared to 67% for the same period in 2024[86]. - Net sales for the three months ended September 30, 2025, increased by 1% to $429.6 million, while net sales for the nine months ended September 30, 2025, also increased by 1% to $1,102.3 million[99]. - Sales in the European based operations for the three months ended September 30, 2025, increased by 5%, driven by brands such as Jimmy Choo, Lacoste, and Coach, which grew by 16%, 8%, and 6%, respectively[100]. - United States based operations sales decreased by 6% for the three months ended September 30, 2025, primarily due to the discontinuation of the Dunhill license[101]. - North America net sales rose by 4% for the nine months ended September 30, 2025, while Western Europe saw a 3% increase[104]. - The discontinuation of the Dunhill license decreased net sales by 1% for the nine months ended September 30, 2025, compared to the prior year[99]. - Roberto Cavalli fragrance sales grew by 44% and 33% in the three and nine months ended September 30, 2025, respectively, due to strong innovation and new product launches[101]. - European based operations reported net sales of $295.3 million for the three months ended September 30, 2025, an increase from $282.4 million in the prior year[105]. - United States based operations saw net sales decline to $137.1 million for the three months ended September 30, 2025, down from $146.1 million in the prior year[108]. Financial Metrics - Gross profit margin as a percentage of net sales was 63.5% and 64.4% for the three and nine months ended September 30, 2025, compared to 63.9% and 63.6% for the same periods in the prior year[105]. - Selling, general and administrative expenses as a percentage of net sales were 38.2% and 42.4% for the three and nine months ended September 30, 2025, compared to 38.9% and 41.8% for the same periods in the prior year[110]. - Net income attributable to Interparfums, Inc. was $65.8 million and $140.3 million for the three and nine months ended September 30, 2025, compared to $62.3 million and $140.1 million for the same periods in the prior year[123]. - Royalty expense represented 8.1% and 8.2% of net sales for the three and nine months ended September 30, 2025, compared to 8.0% and 8.1% for the same periods in the prior year[114]. - Operating margins were 25.3% and 22.0% for the three and nine months ended September 30, 2025, compared to 25.0% and 21.9% for the same periods in the prior year[115]. - Promotion and advertising expenses were $65.5 million and $185.9 million for the three and nine months ended September 30, 2025, representing 15.3% and 16.9% of net sales[112]. Debt and Cash Position - Long-term debt aggregated $196.9 million as of September 30, 2025, an increase from $157.3 million as of December 31, 2024[117]. - As of September 30, 2025, the company had $187.9 million in cash, cash equivalents, and short-term investments, with no liquidity issues expected[126]. - Working capital as of September 30, 2025, totaled $688.0 million, with approximately 77% of total assets held by European operations[127]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $68.4 million, up from $49.7 million in the same period of 2024[133]. - Accounts receivable increased by 23% from year-end 2024, with days' sales outstanding rising to 89 days from 83 days year-over-year[133]. - Inventory levels decreased by 5% from year-end 2024, with finished goods comprising 68% of inventory as of September 30, 2025, compared to 63% a year earlier[133]. Strategic Initiatives - The company plans to continue investments in fast-growing markets and channels to increase market share[94]. - In July 2025, the company’s subsidiary signed an exclusive fragrance license agreement with Longchamp, effective through December 31, 2036, with the first launch expected in 2027[129]. - The company acquired all intellectual property rights relating to Maison Goutal in June 2025, with commercial use expected to begin after the existing license expires on December 31, 2025[129]. - The annual dividend was increased to $3.20 per share in February 2025, with the next quarterly dividend of $0.80 per share payable on December 31, 2025[139]. - As of September 30, 2025, the company had foreign currency contracts totaling approximately $60 million with maturities of less than one year[147]. - The company anticipates potential inflationary impacts in the last quarter of 2025 and beyond due to tariffs affecting its cost structure[141].