Core Viewpoint - Bessemer Group Inc. significantly reduced its holdings in Interparfums, Inc. by 99.2% in Q3, indicating a major shift in investment strategy towards the company [2] Institutional Holdings - Bessemer Group Inc. sold 185,793 shares, leaving it with only 1,552 shares valued at $153,000 at the end of the reporting period [2] - Westwood Holdings Group Inc. increased its stake by 66.8%, acquiring an additional 310,712 shares, bringing its total to 775,590 shares worth $101,843,000 [3] - Squarepoint Ops LLC raised its position by 249.3%, now holding 225,907 shares valued at $29,664,000 after purchasing 161,239 shares [3] - Man Group plc expanded its stake by 572.8%, owning 187,058 shares worth $24,563,000 after acquiring 159,254 shares [3] - Tributary Capital Management LLC increased its holdings by 139.6%, now owning 228,520 shares valued at $22,482,000 after buying 133,131 shares [3] - Institutional investors collectively own 55.57% of Interparfums' stock [3] Stock Performance - Interparfums' stock opened at $102.24, with a market cap of $3.28 billion [4] - The company has a P/E ratio of 20.01, a debt-to-equity ratio of 0.13, a current ratio of 3.27, and a quick ratio of 1.99 [4] - The stock has fluctuated between a 1-year low of $77.21 and a high of $148.15 [4] Analyst Ratings and Price Targets - Sanford C. Bernstein upgraded Interparfums to a "strong-buy" rating [5] - UBS Group set a target price of $103.00, while Jefferies Financial Group set a target of $112.00 [5] - BWS Financial maintained a "neutral" rating with a price target of $85.00 [5] - Berenberg Bank initiated coverage with a "buy" rating and a target of $103.00 [5] - The consensus rating for Interparfums is "Moderate Buy" with a price target of $119.14 [5][6] Company Profile - Interparfums, Inc. is a global fragrance company that designs, manufactures, and distributes premium perfume and cosmetic products [7] - The company operates primarily through licensing agreements with established fashion and luxury brands, overseeing all stages of product development [7] - Its portfolio includes well-known names such as Montblanc, Coach, Jimmy Choo, Van Cleef & Arpels, and Lanvin [7]

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].

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]