Interparfums, Inc. Delivers Record FY2025 Performance, Reaffirms 2026 Outlook and Dividend

Key Takeaways for Investors

• Record Net Sales: FY2025 net sales reached \$1.49 billion, up 2% year-over-year, with fourth quarter sales rising 7% to \$386 million.
• Solid Earnings: Diluted EPS for FY2025 was \$5.24, a 2% increase versus \$5.12 in FY2024. Q4 diluted EPS rose 16% to \$0.88 per share.
• Reaffirmed 2026 Guidance: The company maintains its FY2026 guidance with expected net sales of \$1.48 billion and EPS of \$4.85.
• Dividend Maintained: The annual cash dividend is unchanged at \$3.20 per share for 2026, with the next quarterly payment of \$0.80 per share scheduled for March 31, 2026.
• Strong Financial Position: Year-end cash, cash equivalents, and short-term investments totaled \$295 million. Working capital was \$683 million, and inventories declined by 6% year-on-year.
• Brand and Geographic Performance: Growth was driven by key brands like Jimmy Choo (+6%), Coach (+15%), Lacoste (+28%), and Roberto Cavalli (+33%). Most regions saw gains, especially Central and South America (+11%), while Asia Pacific faced a 4% decline.
• Operational Challenges: Gross margin dipped slightly due to US tariffs, and SG&A expenses increased due to higher advertising and promotional spend.
• Future Growth Catalysts: Major launches ahead, including Annick Goutal, Off-White, and Longchamp, plus new long-term licenses with David Beckham and Nautica.

Detailed Financial and Operational Review

Financial Performance

Interparfums, Inc. (NASDAQ GS: IPAR) reported another record year in 2025, with net sales of \$1.49 billion (+2%) and diluted earnings per share of \$5.24 (+2%). The fourth quarter was particularly robust, with net sales rising 7% to \$386 million and diluted EPS jumping 16% to \$0.88. The company’s performance exceeded its previous guidance of \$1.47 billion in net sales and \$5.12 EPS.

Gross margin for the year stood at 63.6%, a slight decrease from 63.9% in 2024, mainly attributable to higher costs from US tariffs, totaling \$12.8 million (0.9% of sales). However, these headwinds were partially offset by favorable segment and brand mix, and the company’s pricing actions. SG&A expenses as a percentage of sales rose to 45.5% (from 44.7%), reflecting increased advertising and promotional expenditures (\$295 million, up 5%). Operating income for 2025 was \$270 million, yielding an operating margin of 18.2% (down from 18.9%).

Below the operating line, net income benefited from a one-time gain of \$6 million related to debt extinguishment. The effective tax rate dropped to 23.3% for the full year, down from 24.2% in 2024, aided by a favorable \$2 million net tax gain. Net income attributable to Interparfums was \$168 million, up from \$164 million, with net income as a percentage of sales stable at 11.3%.

Balance Sheet Strength and Cash Flow

Interparfums ended 2025 with a strong balance sheet: \$295 million in cash, cash equivalents, and short-term investments, and \$683 million in working capital. Inventories fell by 6% owing to optimization programs and normalization of supply chains. The company delivered operating cash flow equivalent to 103% of net income, compared to 92% in the prior year. Long-term debt stood at \$176 million.

Business and Brand Highlights

• Brand Performance: The company’s top seven brands, representing roughly 77% of net sales, grew 8% in Q4 and 5% for the year. Jimmy Choo and Coach led the way, with Coach posting an impressive 15% annual growth, driven by the success of the “I Want Choo” line and broad-based momentum across Coach’s men’s and women’s lines.
• Lacoste and Roberto Cavalli: Both brands continued to outperform in their second year under Interparfums’ management. Lacoste sales reached \$108 million, exceeding initial targets, up 28% for the year. Roberto Cavalli sales surged 33%, reflecting the brand’s elevated market positioning.
• Regional Dynamics: Solid gains were seen in North America (+3%), Western Europe (+5%), and Central/South America (+11%). Eastern Europe posted a modest 2% increase, while the Middle East and Africa fell 4% (but up 4% excluding Dunhill phase-out). Asia-Pacific declined 4% due to distribution issues in South Korea and India, partially offset by growth in Australia, China, and Japan. Travel Retail outperformed consolidated sales as the company strengthened its presence in this channel.
• Product Innovation and Pipeline: The year saw successful launches of several blockbuster fragrances and new line extensions, with the introduction of Solférino as a new luxury brand. The company is preparing launches for Annick Goutal, Off-White, and Longchamp, and expects continued momentum from the recent 15-year Guess license extension and new long-term licenses with David Beckham and Nautica.

Guidance and Outlook for 2026

Management reaffirmed its FY2026 guidance, projecting net sales of \$1.48 billion and EPS of \$4.85. The company noted that tariffs will remain a headwind as they annualize for the full year, but ongoing cost mitigation efforts and the impact of 2025 price increases should help stabilize gross margins. The company remains optimistic about holding market share in a normalizing global environment, supported by its innovation pipeline and strong brand portfolio.

The annual cash dividend for 2026 will remain at \$3.20 per share, reflecting a stable and prudent capital allocation approach. The next quarterly dividend of \$0.80 per share will be paid on March 31, 2026, to shareholders of record as of March 16, 2026.

Potential Share Price Drivers & Risks

• Record results and dividend stability are likely to be viewed positively by investors. Outperformance on both sales and EPS versus guidance and robust cash generation are signs of operational strength.
• Tariff costs remain a drag on margins, but management’s mitigation efforts and pricing power are partially offsetting these pressures.
• Brand launches and new licenses (David Beckham, Nautica, Off-White, Annick Goutal, Longchamp) provide a visible pipeline for growth, which may be supportive for the share price.
• Any deterioration in key markets (Asia-Pacific, Middle East/Africa) or escalation of tariffs may pose downside risks.

Conference Call Details

Management will host a conference call to discuss these results at 11:00 am ET, Wednesday, February 25, 2026. Details for dial-in and webcast are available on the company’s website.

About Interparfums, Inc.

Interparfums produces and distributes prestige fragrance and related products under licenses with major brands and manages operations through European and US-based subsidiaries. Its products are distributed in over 120 countries, with a portfolio that includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, Guess, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Longchamp, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, and Van Cleef & Arpels.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties, including those detailed in Interparfums’ SEC filings. Readers should not rely on these statements as guarantees of future performance. Please consult your financial advisor before making investment decisions.

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