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 - Interparfums, Inc. reported a slight decline in net sales for the second quarter of 2025, with total sales at $334 million, down 2% from $342 million in the same period last year, while year-to-date sales increased by 1% to $673 million from $666 million [2][4] Sales Performance - European based net sales increased by 6% to $241 million in Q2 2025 from $226 million in Q2 2024, and year-to-date sales rose by 7% to $488 million from $457 million [2][6] - United States based net sales saw a significant decline of 20% to $96 million in Q2 2025 from $120 million in Q2 2024, with year-to-date sales down 12% to $190 million from $216 million [2][8] - The decline in U.S. sales was primarily attributed to the discontinuation of the Dunhill license, which had an 8 percentage-point impact on sales [8] Brand Performance - Sales for established lines under Lacoste and Coach performed strongly, with Coach for Men Eau de Parfum and Coach Women Gold achieving sales increases of 59% and 42%, respectively [6] - Jimmy Choo fragrance sales declined by 20% in Q2 2025 compared to the previous year, but year-to-date sales are up 5% due to new product introductions [7] - Roberto Cavalli fragrance sales grew by 23% in Q2 2025 and 25% year-to-date, benefiting from integration efforts [9] Management Commentary - The CEO noted that consolidated sales on an organic basis grew by 3% for the first half of 2025, despite a moderate decline in Q2 sales due to order timing shifts [4] - The company remains optimistic about the U.S. market and the resilience of its brand portfolio, viewing current challenges as temporary [5][10]