Core Insights - Interparfums, Inc. (IPAR) reported strong sales results for Q4 2025, driven by holiday demand, favorable foreign exchange effects, and momentum across core fragrance brands [1][2]. Sales Performance - For Q4 2025, Interparfums achieved a 7% increase in net sales, reaching $386 million, marking its best-ever fourth-quarter performance. Full-year net sales reached a record $1.489 billion, supported by currency tailwinds and growth across a broad portfolio of prestige and luxury fragrance brands [2]. - Europe-based net sales were $233 million in Q4, a 9% increase from the prior period, including 4% organic growth and a 4% benefit from foreign exchange. Full-year European sales rose 7% compared to 2024 on a reported basis and 4% organically [3]. Brand Contributions - Coach fragrances posted 5% growth in Q4 and 15% for the full year, supported by established lines and new launches [4]. - Lacoste fragrances saw strong gains of 23% in Q4 and 28% for the full year, with annual sales reaching $108 million [4]. - Montblanc fragrances recorded 22% growth in Q4, supported by the launch of the Montblanc Explorer Extreme line [5]. - Jimmy Choo fragrances grew 6% in 2025, driven by sustained demand in the U.S. market [5]. U.S. Sales Metrics - In Q4 2025, U.S.-based net sales reached $155 million, indicating a 4% year-over-year increase, supported by growth from GUESS and Donna Karan/DKNY [7]. - For the full year, U.S. sales totaled $482 million, a 6% decline from $511 million in 2024. Excluding the impact of the discontinued Dunhill license, the decline was 3% [7]. - GUESS and Donna Karan/DKNY returned to growth with 7% and 8% increases, respectively, in Q4 [8]. - Roberto Cavalli fragrances delivered significant gains, with sales rising 33% in both Q4 and the full year [9]. - MCM fragrances recorded growth of 40% in Q4 and 17% for the full year [9]. Strategic Initiatives - Interparfums' growth strategy focuses on brand elevation, consistent innovation, and disciplined portfolio management. The company is investing in marketing and advertising to enhance brand desirability while expanding digital and travel retail channels [11]. - Despite macroeconomic challenges, Interparfums ended 2025 with market share gains and record annual sales, entering 2026 with cautious optimism and plans for new product innovation [12].

Core Insights - Interparfums, Inc. (IPAR) reported first-quarter 2025 results with earnings of $1.32 per share, a 4% increase from $1.27 in the prior year, surpassing the Zacks Consensus Estimate of $1.13 per share [3] - Consolidated net sales reached $339 million, up 5% from $324 million year-over-year, with a 7% organic growth driven by strong performance in key fragrance brands [3][4] - The company reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and earnings per share of $5.35, both reflecting a 4% year-over-year increase [13] Financial Performance - The gross margin improved to 63.7%, a 120-basis point increase from 62.5% in the prior year, attributed to a favorable brand and channel mix [6] - Operating income rose 10% to $75 million, with the operating margin expanding to 22.2%, up from 21% in the previous year [10] - Selling, general and administrative (SG&A) expenses were 41.6% of net sales, a slight increase of 10 basis points year-over-year, driven by higher advertising and promotional spending [7] Regional Sales Performance - North America and Western Europe saw sales increases of 14% and 1%, respectively, while Eastern Europe rebounded with a 46% rise in sales [4] - Sales in the Asia/Pacific region declined by 3%, Central and South America decreased by 10%, and the Middle East and Africa experienced a 16% decline, largely due to macroeconomic challenges and the exit from the Dunhill license [5] Inventory and Supply Chain Management - IPAR maintained steady inventory levels while accelerating raw material conversion to finished goods in anticipation of potential supply chain constraints [2] - The company is realigning its supply chain with key markets and exploring alternative sourcing outside China, planning selective price increases of 4% to 6% in August 2025 to offset recent tariffs [2] Financial Health - At the end of the quarter, IPAR had cash and cash equivalents of $96.6 million, long-term debt of $107.4 million, and total equity of $1,007.5 million [12] - The company announced a cash dividend of 80 cents per share, payable on June 30, 2025 [12]