Press ReleaseKaiseraugst (Switzerland), Maastricht (Netherlands), February 12, 2026 dsm-firmenich reports full year 2025 results Management Report 2025 highlights Good financial performance, with strong contribution from synergiesStrategic plan now fully executed following the announced divestment of Animal Nutrition & HealthAnimal Nutrition & Health has been classified as Assets Held for Sale and Discontinued OperationsNew €500 million share repurchase program to be launched in Q1 2026Maintain stable divi ...

Financial Data and Key Metrics Changes - The company reported a decline in adjusted EBITDA of 15% year-over-year, totaling $330 million, which was at the lower end of guidance for a low- to mid-teens decline [37] - Adjusted gross margin was 64.2%, reflecting a 260 basis point decline from the prior year, with expectations for continued margin pressures in the second half of fiscal year 2026 [36][44] - Free cash flow in the first half was $524 million, exceeding guidance and last year's performance, driven by better receivables performance [38] Business Line Data and Key Metrics Changes - In the Prestige segment, like-for-like sales declined by 2%, an improvement from a 6% decline in the previous quarter, with innovation contributing positively [31][32] - Consumer beauty saw like-for-like sales decline of 6%, improving from an 11% decline in Q1, with a focus on reallocating investments to core brands [33][36] - The company plans to streamline its innovation pipeline to focus on high-potential launches, particularly in the color cosmetics segment [34] Market Data and Key Metrics Changes - The prestige beauty market grew approximately 5% in Q2, indicating a slowdown from 6% growth in Q1, with the prestige fragrance market moderating from 5% to 3% growth [28][29] - The company experienced a gap between sell-out and market performance, particularly in key markets like the U.S., U.K., and Germany, while emerging markets showed strong sell-out performance [30][31] Company Strategy and Development Direction - The company is implementing a new strategic framework called "Coty Curated," focusing on making big brands bigger, scaling successful initiatives, and stopping those that dilute resources [9][10] - A performance improvement plan named "Color the Future" is being activated to return the consumer cosmetics business to growth and profit expansion [26][33] - The company is prioritizing operational discipline and focused investment to enhance market share and profitability [18][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing financial results over the past 18 months and emphasized the need for operational discipline and focused execution to leverage the company's strengths [8][9] - The outlook for Q3 includes expectations for mid-single-digit declines in like-for-like revenue trends, particularly in consumer beauty, while the prestige fragrance market is expected to grow low to mid-single digits [40][41] - Management is committed to protecting marketing investments behind core brands and expects to see improvements in sell-out trends in focus brands [46][44] Other Important Information - The company ended the quarter with net debt of $2.6 billion and leverage of 2.7x, the lowest levels in over nine years, with a commitment to reduce leverage closer to 2x over time [39] - The divestiture of Wella generated $750 million in upfront proceeds, aligning with the company's strategy to streamline its portfolio [38] Q&A Session Summary Question: What are the expectations for the upcoming quarters? - The company expects like-for-like sales to decline mid-single digits in Q3, driven primarily by declines in consumer beauty, while the prestige fragrance market is anticipated to grow low to mid-single digits [40][41] Question: How is the company addressing the underperformance in the U.S. market? - The company is focusing on reallocating investments to core brands and improving execution in key markets, with a specific plan to narrow the sell-out gap with the market over time [33][41]

Core Viewpoint - Interparfums, Inc. has announced a 15-year extension of its exclusive worldwide license agreement with Guess?, Inc., extending the partnership for a total of 23 years, highlighting the strength and success of their collaboration in the fragrance market [1][2]. Company Overview - Interparfums, Inc. has been operating in the global fragrance business since 1982, producing and distributing a wide array of prestige fragrance products under various brand licenses [4]. - The company manages its operations through two segments: European operations via a 72% owned subsidiary, Interparfums SA, and U.S. operations through wholly owned subsidiaries in the U.S. and Italy [4]. Partnership Details - The extension of the license agreement emphasizes the successful partnership between Interparfums and Guess?, with significant growth in the GUESS fragrance portfolio, which has gained global prominence [2][3]. - Interparfums has launched several successful fragrances since 2018, including Bella Vita and Uomo, and has plans for more dynamic launches in the future [3]. - The partnership is expected to continue driving impressive sales growth in key markets, with GUESS fragrances remaining a significant part of Interparfums' portfolio [2][3]. Market Position - The GUESS brand is recognized as one of the largest in Interparfums' portfolio, with additional scalability anticipated [3]. - Interparfums is committed to maintaining its full global responsibility for GUESS fragrances until December 31, 2048 [3]. Additional Information - Interparfums' portfolio includes various prestigious brands such as Abercrombie & Fitch, Coach, and Jimmy Choo, distributed in over 120 countries through a diverse network of distributors [5]. - Guess?, Inc. operates a lifestyle collection of products and has a significant retail presence, with 1,058 directly operated stores and additional partner-operated stores worldwide as of November 1, 2025 [6].

Core Viewpoint - Interparfums, Inc. reported a record net sales of $1.49 billion for the full year 2025, reflecting a 2% increase from 2024, with strong performance in the fourth quarter contributing to this growth [1][4]. Financial Performance - Fourth quarter net sales reached $386 million, a 7% increase compared to $362 million in the same quarter of 2024 [2]. - Full year net sales for 2025 were $1,489 million, up from $1,452 million in 2024, marking a 2% increase [2]. - European based net sales for the fourth quarter were $233 million, a 9% increase from $214 million in 2024, while full year sales rose 7% to $1,016 million [2][5]. - U.S. based net sales for the fourth quarter were $155 million, a 4% increase from $149 million in 2024, but full year sales declined by 6% to $482 million [2][10]. Exchange Rate Impact - The average dollar/euro exchange rate for the fourth quarter of 2025 was 1.16, compared to 1.07 in the fourth quarter of 2024, resulting in a positive 3% foreign exchange impact [3]. - For the full year, the average exchange rate was 1.13, leading to a positive 2% foreign exchange impact [3]. Brand Performance - Coach fragrance sales increased by 5% in the fourth quarter and 15% for the full year, supported by successful product launches [6]. - Lacoste fragrance sales grew 23% in the fourth quarter and 28% for the full year, exceeding expectations with full year sales of $108 million [7]. - Montblanc brand sales rose 22% in the fourth quarter, driven by new product lines and favorable foreign exchange [8]. - Jimmy Choo fragrances saw a 6% growth in 2025, bolstered by the success of the I Want Choo franchise [9]. U.S. Operations Insights - U.S. operations saw a 4% increase in sales during the fourth quarter, driven by GUESS and Donna Karan/DKNY brands [10]. - GUESS and Donna Karan/DKNY each posted sales increases of 7% and 8% respectively in the fourth quarter [11]. - Roberto Cavalli fragrance sales rose 33% in both the fourth quarter and full year, reflecting successful product launches [12]. - MCM fragrance sales increased by 40% in the fourth quarter and 17% for the full year [12]. Future Outlook - The company remains cautiously optimistic about 2026, anticipating a more favorable operating environment and plans for major innovations and potential new brand acquisitions [13].

Core Insights - Klarna reports significant increases in U.S. holiday spending, with triple-digit year-over-year growth in categories such as entertainment (+130%), experiences (+115%), and automotive products (100%) from December 1 to December 22, indicating a shift towards experiential and high-value purchases this season [1][2] Consumer Trends - In traditional retail, footwear emerged as the most-clicked category, with popular items including Nike Air Force 1 '07, UGG Lowmel, Adidas Samba OG, and classic Jordan styles [3] - Headphones ranked as the second most-clicked category, with strong interest in Apple AirPods 4, AirPods Pro (2nd Gen), and premium models from Sony and Bose [4] - Gaming interest focused on console upgrades, particularly Microsoft's Xbox Series X and Series S, along with newer systems like the Nex Playground Game System [4] - Handbags saw steady engagement, with consumers favoring practical styles from brands like Michael Kors, Coach, Lululemon, and Marc Jacobs [5] - Fragrances dominated clicks, with bestsellers including Carolina Herrera Good Girl, Dior Sauvage, and Viktor & Rolf Flowerbomb [5] Company Overview - Klarna is a global digital bank and flexible payments provider, boasting over 114 million active users and processing 3.4 million transactions daily [6] - The company partners with over 850,000 retailers, including major brands like Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike, and Airbnb, to enhance consumer payment experiences [6]

Core Viewpoint - Interparfums (IPAR) is a capital-light fragrance licensee with a strong history of revenue growth through brand development and license expansion, currently facing challenges from destocking, macroeconomic demand softness, and the expiration of the Boucheron license [1] Company Analysis - The company has a long-term investment horizon and focuses on firms with strong fundamentals that are undervalued due to short-term challenges [1] - There is a belief that the market is overly focused on short-term issues, leading to mispricing of fundamentally strong companies, which presents opportunities for long-term value [1]

Core Insights - Interparfums, Inc. (IPAR) has provided an initial outlook for 2026, expecting net sales of approximately $1.48 billion, a slight increase from $1.47 billion projected for 2025, while earnings per share are anticipated to decline by 5% to $4.85 due to the absence of one-time tax benefits and tariff pressures [1][9]. Group 1: 2026 Outlook and Market Conditions - The company views 2026 as a strategic consolidation year, facing challenges from macroeconomic softness and ongoing inventory destocking in retail channels, which are expected to impact the fragrance market [2][9]. - Despite these challenges, favorable foreign exchange trends and momentum from newer brands are anticipated to mitigate the effects of the expiring Boucheron license at the end of 2025 [2][9]. Group 2: Portfolio Strategy and Product Launches - Interparfums plans to strengthen its brand platform in 2026 by increasing investments in emerging labels like Off-White and Longchamp, preparing for a significant rollout in 2027 [3][9]. - The company will support new launches across its core lines, including Solferino and Annick Goutal, although these initiatives may temporarily pressure margins [3][9]. - A broad range of product extensions and new releases are planned within its European operations, including updated fragrances for Coach and expansions within Lacoste's franchises [4][5]. Group 3: U.S. Market Initiatives - In the United States, Interparfums will introduce a new men's offering under GUESS Iconic and expand the Cashmere portfolio with Cashmere & Rose Absolu, along with new collections from Roberto Cavalli and Ferragamo [6][7]. - Special editions, including a 50th-anniversary release for MCM and enhancements to the MCM Eau de Parfum line, are also part of the product slate for 2026 [7]. Group 4: Future Growth Expectations - The company emphasizes that investments in 2026 are aimed at establishing a strong launch cycle for 2027, particularly for brands like Montblanc, GUESS, Ferragamo, and Cavalli [9][10]. - Interparfums anticipates an improvement in the broader economic environment toward the end of 2026, which is expected to provide a more supportive backdrop for growth [9][10].

Core Viewpoint - Interparfums, Inc. has provided initial guidance for fiscal year 2026, projecting modest growth in net sales despite macroeconomic challenges and ongoing inventory destocking [1][4]. Financial Guidance - Net Sales for 2026 are estimated at $1.48 billion, a 1% increase from $1.47 billion in 2025 [2]. - Diluted EPS is projected to be $4.85, reflecting a 5% decline from $5.12 in 2025 [2][5]. Management Commentary - The CEO, Jean Madar, emphasized a focus on consolidation and laying the groundwork for long-term growth in 2026, with expectations for a strong performance in 2027 as new brands are distributed [3][5]. - The company anticipates that foreign exchange gains will help mitigate the impact of the expiration of the Boucheron license [4]. Strategic Initiatives - Interparfums plans to introduce new fragrance extensions for key brands, including Coach, Lacoste, Jimmy Choo, and Montblanc, among others [6][7]. - The company is set to expand its owned brand Solférino into an additional 50 doors in the first half of 2026 and will launch redesigned Goutal fragrances [7]. Future Outlook - Investments made in 2026 are expected to position the company for success in 2027, with anticipated improvements in the macroeconomic environment by late 2026 [7].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 reached $430 million, marking a 1% increase year-over-year for both the quarter and the first nine months of the year [13][24] - Gross margin for the first nine months expanded by 80 basis points to 64.4% from 63.6% in the prior year, but declined by 40 basis points to 63.5% in Q3 due to higher tariffs impacting U.S. imports [14][15] - Operating income for Q3 was $109 million, a 2% increase, resulting in an operating margin of 25.3% [16] - Net income for Q3 was $66 million, or $2.05 per diluted share, reflecting a 6% increase compared to the same quarter last year [18] Business Line Data and Key Metrics Changes - European-based operations saw net sales rise by 5% for Q3 and 6% year-to-date, with a gross margin of 66% for the quarter [19] - U.S.-based operations experienced a 5% decline in net sales for Q3, with gross margin decreasing by 110 basis points due to transitional tariff impacts [20] - The introduction of new products and brands, such as Roberto Cavalli and the Solferino Collection, is expected to drive future sales growth [4][6] Market Data and Key Metrics Changes - E-commerce sales are accelerating, with fragrance holding a 50% market share within the beauty category on Amazon [7] - Travel retail grew by 13% in Q3, driven by brands like Lacoste, Jimmy Choo, and Coach [8] - The overall market growth in the U.S. for Q3 was up 7%, indicating healthy consumption despite a disconnect between sell-in and sell-out [31] Company Strategy and Development Direction - The company is focusing on innovation and product enhancements to meet changing consumer preferences, supported by advertising and promotional efforts [3] - Plans to expand the ultra-luxury direct-to-consumer segment and improve supply chain efficiencies are in place to navigate macroeconomic uncertainties [9][10] - The company anticipates moderate growth in 2026, with a return to stronger growth expected in 2027 driven by new brand launches [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain uncertain, but expressed confidence in the strength of the business model and consumer demand [3][25] - The company is monitoring inventory levels closely and is prepared to respond to retailer needs as they arise [11][22] - Management highlighted the importance of maintaining strong relationships with retailers and distributors to support future growth [12][25] Other Important Information - The company has repurchased $7.5 million in shares year-to-date and plans to continue evaluating share repurchases [23] - Inter Parfums was named beauty company of the year by Women's Wear Daily, reflecting the strength of its brands and partnerships [12] Q&A Session Summary Question: Insights on holiday season expectations and pricing feedback - Management reported strong sales in October and positive forecasts for November, indicating retailers are continuing to buy [26] - Pricing increases were modest and well-accepted, particularly for prestige brands, with no significant resistance noted from retailers or consumers [28] Question: Shipment timing and disconnect between sell-in and sell-out - There is a noted disconnect between sell-in and sell-out, with market growth remaining healthy despite this [30][31] Question: Growth profile from new brands over the next two years - New brands like Off-White and Longchamp are expected to drive growth, with significant potential seen in Longchamp [33][34] Question: Expectations for gross margin in Q4 - Management anticipates slight erosion in gross margins due to ongoing tariff impacts, with improvements expected in Q2 2026 [35][36]

Core Insights - IFF has announced the installation of a nature-based hydrogen production facility at its Scent R&D and fragrance ingredients manufacturing plant in Benicarló, Spain [1] - The facility will utilize renewable electricity for hydrogenation reactions, marking a significant step for the fragrance industry [1] - IFF has partnered with Iberdrola, a leading producer of renewable energy, to support this initiative [1] Company Developments - The new hydrogen production facility is part of IFF's commitment to sustainability and innovation in the fragrance sector [1] - This initiative positions IFF as a pioneer in the fragrance industry by integrating renewable energy into its production processes [1] Industry Impact - The collaboration with Iberdrola highlights the growing trend of renewable energy adoption within the fragrance and broader chemical industries [1] - This move may set a precedent for other companies in the fragrance industry to follow suit in utilizing renewable energy sources [1]