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]

NEW YORK, Jan. 26, 2026 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today announced a 15-year extension of its exclusive worldwide license agreement with Guess?, Inc., for the continued creation, development and distribution of its fragrances, extending the agreement length for 23 more years. Jean Madar, Chairman & Chief Executive Officer of Interparfums, said, “This extension underscores the enduring strength of our partnership with Guess?, Inc. After more tha ...

Full Year 2025 Net Sales Rose to $1.49 Billion 2025 Fourth Quarter & Full Year Conference Call Scheduled for February 25, 2026 NEW YORK, Jan. 21, 2026 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today announced net sales for the three months and full year ended December 31, 2025. Net Sales($ in millions)Three Months EndedYear EndedDecember 31,December 31,2025 2024 <td colspan="2" style="border-top: solid black 1pt ; border-right: solid black 1pt ; bo ...

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]

Interparfums ( IPAR ) is a capital-light fragrance licensee with a long history of compounding revenue through brand development and license expansion. Today, the company is facing headwinds from destocking, macro-driven demand softness, and the expiration of the BoucheronI have a long-term investment horizon and look for companies with strong fundamentals that have been beaten down due to short-term headwinds. I believe the market is overly concerned with the short-term, which leaves many great companies m ...

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]

Core Insights - Interparfums, Inc. reported a modest growth in net sales for Q3 2025, with a 1% increase year-over-year, reflecting ongoing market dynamics and macroeconomic challenges [2][3][12] - The company has refined its FY2025 guidance to anticipate $1.47 billion in sales, representing a 1% increase from the previous year, with diluted earnings per share expected to remain flat at $5.12 [12] Financial Performance - For Q3 2025, net sales reached $430 million, compared to $425 million in Q3 2024, while net sales for the first nine months of 2025 totaled $1.102 billion, up from $1.091 billion in the same period last year [2][11] - Gross margin for Q3 2025 was 63.5%, a slight decrease from 63.9% in Q3 2024, but improved to 64.4% for the first nine months, up from 63.6% [2][6] - Operating income increased by 2% to $109 million in Q3 2025, with an operating margin of 25.3%, compared to 25.0% in Q3 2024 [2][8] Market Dynamics - The prestige and luxury fragrance category continues to perform well, but broader macroeconomic factors such as retailer destocking and evolving consumer behavior have moderated topline growth [3][4] - Sales in North America and Western Europe grew by 4% and 3% respectively, while sales in Asia/Pacific declined by 9% due to distribution challenges [4][5] Strategic Initiatives - The company is focused on maintaining sales momentum through a strong innovation pipeline and rigorous advertising and promotion programs [3][5] - Interparfums plans to leverage e-commerce channels to maximize brand engagement and capture sales during the holiday gifting season [5][12] Operational Efficiency - SG&A expenses as a percentage of net sales decreased to 38.2% in Q3 2025 from 38.9% in Q3 2024, reflecting effective management of advertising and promotional activities [7][8] - The company reported a healthy financial position with $188 million in cash and cash equivalents, and generated $68 million in operating cash flow for the first nine months of 2025, up from $50 million a year ago [12]