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]

Core Insights - Interparfums, Inc. reported a 5% increase in net sales for Q1 2025, reaching $339 million compared to $324 million in Q1 2024, reaffirming its sales and earnings guidance for 2025 [1][2][15] Financial Performance - Net sales for Q1 2025 were $339 million, a 5% increase from $324 million in Q1 2024 [2] - Gross margin improved to 63.7% from 62.5%, reflecting a 120 basis point increase [2][8] - Operating income rose by 10% to $75 million, with an operating margin of 22.2%, up from 21.0% [2][12] - Net income attributable to Interparfums, Inc. was $42 million, a 4% increase from $41 million in the previous year [2][28] - Diluted earnings per share (EPS) increased by 4% to $1.32 from $1.27 [2][28] Market Performance - Organic sales growth, excluding foreign exchange impacts and the Dunhill license discontinuation, was 7% [4] - North America and Western Europe saw sales increases of 14% and 1%, respectively, while Eastern Europe experienced a significant rebound with a 46% increase [5] - Asia/Pacific sales declined by 3%, and Central and South America saw a 10% decline, attributed to high prior year bases [5] Strategic Initiatives - The company renewed its partnership with Coach for an additional five years, extending the license until June 30, 2031 [6] - Interparfums is expanding its portfolio with the launch of the Solférino collection and acquisitions of Off-White and Annick Goutal, set for commercialization in 2026 [7] Financial Position - As of March 31, 2025, the company had $172 million in cash and cash equivalents, with working capital of $605 million [13] - SG&A expenses as a percentage of net sales were 41.6%, reflecting a slight increase due to higher advertising and promotional spending [9][11] - The company invested $52 million in A&P initiatives, representing 15.2% of net sales, a 7% increase from the prior year [11] Guidance - Interparfums reaffirms its 2025 guidance of net sales of $1.51 billion and earnings per diluted share of $5.35, both reflecting a 4% increase [15]