Interparfums, Inc. Reports 2025 Second Quarter and Half Year Results

Core Insights - Interparfums, Inc. reaffirms its 2025 sales and earnings guidance despite facing challenges in the second quarter of 2025 [1][14] Financial Performance - For the second quarter of 2025, net sales were $334 million, a decrease of 2% compared to $342 million in the same period of 2024. For the first half of 2025, net sales increased by 1% to $673 million from $666 million in 2024 [2] - Gross margin improved to 66.2% in the second quarter, up 170 basis points from 64.5% in 2024, and to 65.0% for the first half, an increase of 150 basis points from 63.5% [2][8] - Operating income decreased by 9% to $59 million in the second quarter, while it remained stable at $134 million for the first half [2] - Net income attributable to Interparfums, Inc. was $32 million in the second quarter, down 13% from $37 million in 2024, and $74 million for the first half, a decrease of 4% from $78 million [2][12] Market Commentary - The U.S. market accounted for 35% of net sales in the second quarter, showing strong demand despite a general easing in global fragrance market growth [3] - North America and Western Europe saw sales growth of 7% and 3% year-to-date, respectively, while Asia-Pacific sales declined by 12% due to previous exceptional sales and distribution issues [4] - Central & South America sales increased by 7%, driven by strong performance from Lacoste fragrances, and Eastern Europe sales rose by 14% [5] Strategic Developments - Interparfums signed an exclusive global license agreement with Longchamp, marking the addition of its third new brand since December 2024, following Off-White and Goutal [6] - The company is preparing to launch its first owned brand fragrance collection, Solférino, with a flagship boutique opening in Paris [6] Financial Outlook - The company anticipates that challenges from trade destocking and macroeconomic uncertainties will persist but remains optimistic about achieving its full-year objectives of $1.51 billion in net sales and earnings per diluted share of $5.35 [13][14] - A quarterly cash dividend of $0.80 per share is scheduled for payment on September 30, 2025 [14]