What changed in this filing

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Item 1. Financial Statements

2024-11-06 compared with 2024-08-06 · 246 added, 190 removed, 483 unchanged (47% of the section changed)

11 unchanged sentences

year ended December 31, 2023 , included in our annual report filed on Form 10-K.

results of operations for the three months ended June 30, 2024 , are not necessarily indicative of the results to be expected

results of operations for the nine months ended September 30, 2024 , are not necessarily indicative of the results to be expected

for the entire fiscal year.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

1 unchanged sentence

thousands except share and per share data)

June 30, 2024

September 30, 2024

December 31, 2023

22 unchanged sentences

Lease liabilities, less current portion

Inter Parfums, Inc.

Interparfums, Inc.

shareholders’ equity:

3 unchanged sentences

authorized 100,000,000 shares;

outstanding 32,024,280 and 32,004,660 shares at June 30, 2024 and December 31, 2023 , respectively

outstanding 32,029,580 and 32,004,660 shares at September 30, 2024 and December 31, 2023 , respectively

Additional paid-in capital

1 unchanged sentence

Accumulated other comprehensive loss

Treasury stock, at cost, 9,981,665 and 9,981,665 shares at June 30, 2024 and December 31, 2023 , respectively

Total Inter Parfums, Inc.

Treasury stock, at cost, 9,981,665 and 9,981,665 shares at September 30, 2024 and December 31, 2023 , respectively

Total Interparfums, Inc.

shareholders’ equity

2 unchanged sentences

notes to consolidated financial statements.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Cost of sales

5 unchanged sentences

Interest and investment loss (income)

Other loss (income)

Nonoperating Income (Expense)

1 unchanged sentence

Net income attributable to the noncontrolling interest

Net income attributable to Inter Parfums, Inc.

Net income attributable to Interparfums, Inc.

Earnings per share:

Net income attributable to Inter Parfums, Inc.

Net income attributable to Interparfums, Inc.

common shareholders:

7 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Comprehensive income:

9 unchanged sentences

Comprehensive income attributable to the noncontrolling interests

Comprehensive income attributable to Inter Parfums, Inc.

Comprehensive income attributable to Interparfums, Inc.

See notes to consolidated financial statements.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Common stock, beginning and end of period

18 unchanged sentences

Net derivative instrument loss, net of tax

Share-based (adjustment) compensation

Share-based compensation

Transfer of subsidiary shares purchased

1 unchanged sentence

See notes to consolidated financial statements.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

1 unchanged sentence

(In thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

11 unchanged sentences

Income taxes, net

Net cash used in operating activities

Net cash provided by operating activities

Cash flows from investing activities:

6 unchanged sentences

Proceeds from loans payable, bank

Proceeds from issuance of long-term debt

Repayment of long-term debt

5 unchanged sentences

Effect of exchange rate changes on cash

Net (decrease) increase in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents - beginning of period

3 unchanged sentences

See notes to consolidated financial statements.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

25 unchanged sentences

The Dunhill fragrance license expired on September 30, 2023 and was not renewed.

The Company has a twelve -month sell-off period during which it will maintain the right to sell-off remaining Dunhill fragrance inventory, which is customary in the fragrance industry.

All usable components have been converted to finished goods, and any remaining components will be destroyed.

The Company had a twelve -month sell-off period during which it maintained the right to sell-off remaining Dunhill fragrance inventory, which is customary in the fragrance industry.

As of September 30, 2024, all finished goods and components have been sold and we no longer carry any inventory related to Dunhill.

Rochas Fashion

As a result of operational challenges faced by the Rochas Fashion business in prior years, we took a $ 2.4 million impairment charge and a $ 6.8 million impairment charge on our Rochas fashion trademark in the first quarter of 2021 and the fourth quarter of 2022 , respectively.

In 2023 , the Rochas teams underwent a strategic shift to take over their own brand operations, exiting contracts with manufacturers and distributors to make this new structure operational beginning in 2024 .

An independent expert concluded that the valuation based on this new business model would not require additional impairments as of December 31, 2023.

There have been no triggering events in the first half of 2024 to require additional impairment analysis.

INTER PARFUMS, INC.

As a result of operational challenges faced by the Rochas Fashion business in prior years, we took a $ 2.4 million impairment charge and a $ 6.8 million impairment charge on our Rochas Fashion trademark in the first quarter of 2021 and the fourth quarter of 2022 , respectively, resulting in a net book value for the trademark of $ 11.9 million.

In 2023 , the Rochas team underwent a strategic shift to take over their own brand operations, exiting contracts with manufacturers and distributors to make this new structure operational beginning in 2024 .

Management has reviewed and agreed with an independent expert's conclusion that the valuation based on this new business model would not require additional impairments as of December 31, 2023.

There have been no triggering events through September 30, 2024 to require additional impairment analysis.

INTERPARFUMS, INC.

AND SUBSIDIARIES

4 unchanged sentences

The purchase price included the complete renovation of the site.

As of June 30, 2024 , $ 149 million (€ 139 million) of the purchase price, including approximately $ 3 million of acquisition costs, is included in property, equipment and leasehold improvements on the accompanying consolidated balance sheet.

As of September 30, 2024 , $ 156 million (€ 139 million) of the purchase price, including approximately $ 3 million of acquisition costs, is included in property, equipment and leasehold improvements on the accompanying consolidated balance sheet.

The purchase price has been allocated approximately $ 64.1 million (€ 57 million) to land and $ 91.9 million (€ 82 million) to the building.

5 unchanged sentences

Recent Accounting Pronouncements:

are no recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial

In November 2023, the

Financial Accounting Standards Board (“FASB”) issued Accounting Standards

Update (“ASU”) No.

2023-07, Segment Reporting (Topic 280):

Improvements to

Reportable Segment Disclosures.

The ASU updates reportable segment disclosure requirements,

primarily through requiring enhanced disclosures about significant segment

expenses and information used to assess segment performance and allocate

The guidance is effective for fiscal years beginning after December

15, 2023, and interim periods for fiscal years beginning after December 15,

2024, on a retrospective basis.

Early adoption is permitted.

We are currently

evaluating the impact of adopting this ASU on our disclosures.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes

Improvements to Income Tax Disclosures.

The ASU includes

amendments requiring enhanced income tax disclosures, primarily related to

standardization and disaggregation of rate reconciliation categories and income

taxes paid by jurisdiction.

The guidance is effective for annual periods

beginning after December 15, 2024.

Early adoption is permitted and shall be

applied on a prospective basis with the option to apply retrospectively.

currently evaluating the impact of adopting this ASU on our disclosures.

There are no other recent accounting pronouncements issued but not yet

adopted that would have a material effect on our consolidated financial

Inventories consist of the following:

(In thousands)

June 30, 2024

September 30, 2024

December 31, 2023

1 unchanged sentence

Finished goods

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

3 unchanged sentences

The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.

Fair Value Measurements at June 30, 2024

Fair Value Measurements at September 30, 2024

Quoted Prices in

15 unchanged sentences

Foreign currency forward exchange contracts accounted for using hedge accounting

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The carrying amount of cash and cash equivalents, short-term investments including money market funds and marketable equity securities, accounts receivable, other receivables, accounts payable and accrued expenses approximate fair value due to the short terms to maturity of these instruments.

2 unchanged sentences

Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps is the discounted net present value of the swaps using third party quotes from financial institutions.

INTER PARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Derivative Financial Instruments:

28 unchanged sentences

not designated as hedges are included in loss (gain) on foreign currency on the accompanying consolidated statements of income.

Such gains and losses were immaterial for both the six months ended June 30, 2024 and 2023 .

Such gains and losses were immaterial for the three and nine months ended September 30, 2024 and 2023 , respectively.

derivative instruments are reported as either assets or liabilities on the consolidated balance sheet measured at fair value.

The valuation of interest rate swaps is included in long-term debt on the accompanying consolidated balance sheets.

The valuation of interest rate swaps is included in long-term debt on the accompanying consolidated balance sheet.

The valuation

of foreign currency forward exchange contracts at June 30, 2024 , resulted in a net liability and is included in accrued expenses on the accompanying consolidated balance sheet.

At June 30, 2024, the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 48 million and GBP £ 11 million which all have maturities of less than one year .

INTER PARFUMS, INC.

of foreign currency forward exchange contracts at September 30, 2024 , resulted in a net asset and is included in other current assets on the accompanying consolidated balance sheet.

At September 30, 2024 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 21 million and GBP £ 7 million which all have maturities of less than one year .

INTERPARFUMS, INC.

AND SUBSIDIARIES

14 unchanged sentences

the present value of lease payments.

of June 30, 2024 , the weighted average remaining lease term was 4.6 years and the weighted average discount rate used to determine

of September 30, 2024 , the weighted average remaining lease term was 4.2 years and the weighted average discount rate used to determine

the operating lease liability was 3 %.

Rental expense related to operating leases was $ 1.7 million and $ 3.3 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 1.5 million and $ 2.9 million for the corresponding periods of the prior year.

Rental expense related to operating leases was $ 1.6 million and $ 4.9 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 1.5 million and $ 4.5 million for the corresponding periods of the prior year.

Operating lease payments included in operating cash flows totaled $ 4.4

million and $ 2.6 million for the six months ended June 30, 2024 and 2023 , respectively, and noncash additions to operating lease assets totaled $ 0.8 millio n and $ 2.4 million for the six months ended June 30, 2024 and 2023 , respectively.

million and $ 4.0 million for the nine months ended September 30, 2024 and 2023 , respectively, and noncash additions to operating lease assets totaled $ 1.2 millio n and $ 5.7 million for the nine months ended September 30, 2024 and 2023 , respectively.

Company maintains a stock option program for key employees, executives and directors.

3 unchanged sentences

have a six-year term and vest over a four to five -year period.

The fair value of shares vested during the six months ended June 30, 2024 and 2023 aggregated $ 0.04 million and $ 0.10 million , respectively.

The fair value of shares vested during the nine months ended September 30, 2024 and 2023 aggregated $ 0.04 million and $ 0.10 million , respectively.

Compensation cost, net of estimated forfeitures, is

3 unchanged sentences

It is generally our policy to issue new shares upon exercise of stock options.

following table sets forth information with respect to nonvested options for the six months ended June 30, 2024 :

following table sets forth information with respect to nonvested options for the nine months ended September 30, 2024 :

Number of Shares

4 unchanged sentences

Nonvested options – end of period

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

payment expense decreased income before income taxes by $ 0.58 million and $ 1.17 million for the three and six months ended June 30, 2024 respectively, as compared to $ 0.63 million and $ 1.27 million for the corresponding periods of the prior year.

and decreased income attributable to Inter Parfums, Inc.

by $ 0.38 million and $ 0.77 million for the three and six months ended June 30, 2024 respectively.

as compared to $ 0.43 million and $ 0.86 million for the corresponding periods of the prior year.

following table summarizes stock option information as of June 30, 2024 :

payment expense decreased income before income taxes by $ 0.60 million and $ 1.77 million for the three and nine months ended September 30, 2024 respectively, as compared to $ 0.62 million and $ 1.89 million for the corresponding periods of the prior year, and decreased income attributable to Interparfums, Inc.

by $ 0.4 million and $ 1.17 million for the three and nine months ended September 30, 2024 respectively, as compared to $ 0.41 million and $ 1.27 million for the corresponding periods of the prior year.

following table summarizes stock option information as of September 30, 2024 :

Weighted Average

3 unchanged sentences

Options exercised

Outstanding at June 30, 2024

Outstanding at September 30, 2024

Options exercisable

Options available for future grants

of June 30, 2024 , the weighted average remaining contractual life of options outstanding is 2.45 years ( 1.2 years for options

of September 30, 2024 , the weighted average remaining contractual life of options outstanding is 2.23 years ( 0.96 years for options

exercisable);

2 unchanged sentences

and unrecognized compensation cost related to stock options outstanding aggregated $ 2.2 million.

proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2024 and

proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2024 and

2023 were as follows:

(In thousands)

June 30, 2024

June 30, 2023

September 30, 2024

September 30, 2023

Cash proceeds from stock options exercised

Intrinsic value of stock options exercised

were no options granted during the six months ended June 30, 2024 and June 30, 2023 .

were no options granted during the nine months ended September 30, 2024 and September 30, 2023 .

volatility is estimated based on historic volatility of the Company’s common stock.

The expected term of the option is estimated

based on historic data.

based on historical data.

The risk-free rate is based on the U.S.

11 unchanged sentences

basis over the requisite three and a quarter year service period.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

2 unchanged sentences

to these plans will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA.

As of June 30, 2024 the Company acquired 96,371 shares at an aggregate cost of $ 4.1 million .

As of September 30, 2024 the Company acquired 96,371 shares at an aggregate cost of $ 4.1 million .

share purchases and issuances have been classified as equity transactions on the accompanying balance sheet.

Net Income Attributable to Inter Parfums, Inc.

Net Income Attributable to Interparfums, Inc.

Common Shareholders:

Net income attributable to Inter Parfums, Inc.

per common share (“basic EPS”) is computed by dividing net income attributable to Inter Parfums, Inc.

Net income attributable to Interparfums, Inc.

per common share (“basic EPS”) is computed by dividing net income attributable to Interparfums, Inc.

by the weighted average number of shares outstanding.

Net income attributable to Inter Parfums, Inc.

Net income attributable to Interparfums, Inc.

per share assuming dilution (“diluted EPS”), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options using the treasury stock method.

1 unchanged sentence

Three months ended

Six months ended

Nine months ended

(In thousands)

Net income attributable to Inter Parfums, Inc.

September 30,

Net income attributable to Interparfums, Inc.

Weighted average shares

3 unchanged sentences

Earnings per share:

Net income attributable to Inter

Parfums, Inc.

Net income attributable to

Interparfums, Inc.

common shareholders:

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.05 million shares of common stock for the three and six months ended June 30, 2024 .

There were no antidilutive potential common shares outstanding for the three and six months ended June 30, 2023 .

INTER PARFUMS, INC.

There were no antidilutive potential common shares outstanding for the three and nine months ended September 30, 2023 .

INTERPARFUMS, INC.

AND SUBSIDIARIES

3 unchanged sentences

The Company manages its business in two segments, European based operations and United States based operations.

The European assets are located, and operations are primarily conducted, in France.

For European based operations, assets and business operations are primarily conducted in France, and include the results and assets of Interparfums Luxury Brands, Inc ., located in the United States.

For Unites States based operations, assets and business operations are primarily conducted in the United States, and include the results and assets of Interparfums Italia Srl, located in Italy.

Both European based operations and United States based operations primarily represent the sale of prestige brand name fragrances.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

United States

Eliminations of intercompany sales

Net income attributable to Inter Parfums, Inc.:

Net income attributable to Interparfums, Inc.:

United States

Eliminations of intercompany sales relate to European based operations products sold to United States based operations.

September 30,

Total Assets:

United States

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

5 unchanged sentences

You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors.

These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Inter Parfums’ annual report on Form 10-K for the fiscal year ended December 31, 2023 , and the reports Inter Parfums files from time to time with the Securities and Exchange Commission (“SEC”).

Inter Parfums does not intend to and undertakes no duty to update the information contained in this report.

These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums’ annual report on Form 10-K for the fiscal year ended December 31, 2023 , and the reports Interparfums files from time to time with the Securities and Exchange Commission (“SEC”).

Interparfums does not intend to and undertakes no duty to update the information contained in this report.

We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products.

1 unchanged sentence

Certain prestige fragrance products are produced and marketed by our European based operations through our 72 % owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28 % of Interparfums SA shares trade on the Euronext.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 68 % and 69 % of net sales for the six months ended June 30, 2024 and 2023 , respectively.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 67 % of net sales for the nine months ended September 30, 2024 and 2023 , respectively.

We have built a portfolio of prestige brands, which include Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.

Our exclusive and worldwide license for the production and distribution of Lacoste brand perfumes and cosmetics became effective in January 2024.

Through our United States based operations, we also market fragrance and fragrance related products.

United States based operations represented 32 % and 31 % of net sales for the three months ended June 30, 2024 and 2023 , respectively.

Through our United States based operations, we also produce and distribute fragrance and fragrance related products.

United States based operations represented 33 % of net sales for the nine months ended September 30, 2024 and 2023 , respectively.

These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli brands.

Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses.

With respect to the Company’s largest brands, we license the Montblanc, Jimmy Choo, Coach, GUESS, Donna Karan/DKNY, Lacoste, and Ferragamo brand names.

With respect to the Company’s largest brands, we license the Jimmy Choo, Montblanc , Coach, GUESS, Donna Karan/DKNY, Lacoste, and Ferragamo brand names.

As a percentage of net sales, product sales for the Company’s largest brands were as follows:

Six Months Ended

Nine Months Ended

September 30,

Donna Karan/DKNY

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

14 unchanged sentences

As part of our strategy, we plan to continue to make investments behind fast-growing markets and channels to grow market share.

Our reported net sales are impacted by changes in foreign currency exchange rates.

A strong U.S.

dollar has a negative impact on our net sales.

However, earnings are positively affected by a strong dollar, because greater than 50 % of net sales of our European based operations are denominated in U.S.

Our reported net sales are impacted by changes in foreign currency exchange rates as greater than 50 % of net sales of our European based operations are denominated in U.S.

dollars, while almost all costs of our European based operations are incurred in euro.

Conversely, a weak U.S.

dollar has a favorable impact on our net sales while gross margins are negatively affected.

We address certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates.

Recent Important Events

Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 .

Discussion of Critical Accounting Policies

Information regarding our critical accounting policies can be found in our 2023 Annual Report on Form 10-K filed with the SEC.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Results of Operations

Three and Six Months Ended June 30, 2024 as Compared to the Three and Six Months Ended June 30, 2023

Three and Nine Months Ended September 30, 2024 as Compared to the Three and Nine Months Ended September 30, 2023

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in millions)

1 unchanged sentence

United States based product sales

Net sales for the three months ended June 30, 2024 increased 10.7 % from the three months ended June 30, 2023 .

At comparable foreign currency exchange rates, net sales increased 11.1 % from the second quarter of 2023 .

The average dollar/euro exchange rate for the current second quarter was 1.08 compared to 1.09 in the second quarter of 2023 , while the average dollar/euro exchange rate was 1.08 for both the six months ended June 30, 2024 and 2023 .

Net sales for the six months ended June 30, 2024 increased 7.3 % as compared to the six months ended June 30, 2023 .

Continuing the trend from the first quarter 2024 , the current second quarter saw modest sales growth, as compared to the corresponding period of the prior year, largely due to the exceptional performance of both European and United States based operations in 2023 where net sales grew 26 % compared to 2022 .

For European based operations, Jimmy Choo grew sales by 31 % while Montblanc and Coach saw decreases in sales of 3 % and 5 %, respectively, as compared to the corresponding period of the prior year.

This was largely driven by the substantial increases in sales of Montblanc and Coach in the second quarter of 2023 of 16 % and 28 %, respectively, as compared to the second quarter of 2022 .

During the first quarter of 2024 , we began selling the Lacoste brand, which added $ 39.5 million in sales during the first half of the year.

Sales by our United States based operations grew a modest 7.9 % in the second quarter of 2024 off a high 2023 base when second quarter sales had expanded 42 %.

The addition and extension of Roberto Cavalli contributed to the continued growth in United States based operations.

For the first half of 2024 , we saw growth of 8 % and 14 % for GUESS and Donna Karan/DKNY, respectively, following successful and continued brand expansions.

During the second quarter of 2024 , we debuted Montblanc Collection and Jimmy Choo I Want Choo Le Parfum , which contributed to the continued brand strength of our two largest brands.

Additionally, during the second quarter of 2024 , we debuted Coach Dreams Moonlight and Lacoste Original which helped drive continued success of established and new brands for our portfolio.

We also debuted MCM Crush in the second quarter of 2024 helping MCM realize double digit growth from prior year.

Many of our mid-sized brands, including Karl Lagerfeld and Rochas, also achieved double digit sales gains.

Additionally, we introduced brand extensions within established lines for Ferragamo and Guess.

For Ferragamo we enriched the Signorina line with the launch of Signorina Unica .

In the second quarter we launched Guess Iconic and Guess Amore helping to grow one of our largest brands.

The second quarter growth was in line with expectations, and we are confident in our future as we look forward to executing our plans for the remainder of 2024 .

Net sales for the three months ended September 30, 2024 increased 15.4 % from the three months ended September 30, 2023 .

At comparable foreign currency exchange rates, net sales increased 15.0 % from the third quarter of 2023 .

The average dollar/euro exchange rate for the current third quarter was 1.10 compared to 1.09 in the third quarter of 2023 , while the average dollar/euro exchange rate was 1.09 for the nine months ended September 30, 2024 compared to 1.08 for the nine months ended September 30, 2023 .

Net sales for the nine months ended September 30, 2024 increased 10.3 % as compared to the nine months ended September 30, 2023 .

Continuing the trend from the second quarter of 2024 , the current third quarter saw strong sales growth as compared to the corresponding period of the prior year.

This was driven by both the growing global fragrance market in combination with the addition of our newest brands, Lacoste and Roberto Cavalli, which contributed 10% to the increase.

For European based operations, Jimmy Choo and Montblanc sales grew by 17 % and 10 %, respectively, compared to the corresponding period of the prior year, driven by the launch of Jimmy Choo I Want Choo Le Parfum and the ongoing strength in the Montblanc Explorer and Legend lines.

Sales of Coach remained flat as compared to the corresponding period of the prior year.

This was largely driven by the substantial increase in sales of Coach in the third quarter of 2023 of 32 % as compared to the third quarter of 2022 .

During the first quarter of 2024 , we began selling the Lacoste brand, which added $ 29 million and $ 68 million in sales during the three and nine months ended September 30, 2024, respectively.

During the third quarter of 2024 , we rolled out the international launch of Lacoste Original and launched a new Karl Lagerfeld pillar, Ikonik .

Sales by our United States based operations grew a modest 8.7 % in the third quarter of 2024 off a high 2023 base when third quarter sales had expanded 64 %.

The addition and extension of Roberto Cavalli contributed to the continued growth in United States based operations with the debut of Sweet Ferocious in August of this year.

GUESS and Donna Karan/DKNY rose 16 % and 4 %, respectively, compared to the corresponding period of the prior year, following the roll-out of GUESS Iconic and DKNY 24 / 7 building upon the strong performance of our legacy scents for both brands.

The third quarter growth was in line with expectations, and we are confident in our future as we look forward to executing our plans for the remainder of 2024 .

Our brands are in high demand in a robust environment for the fragrance industry, and we have many exciting developments planned for the Company.

We have a large number of brand extensions across many of our brands launching throughout the year, plus the upcoming international expansion of Lacoste Original.

Additionally, there is a new flanker for Roberto Cavalli Signature and a new DKNY blockbuster fragrance, DKNY 24 / 7 , that launched in select markets at the end of the second quarter and will see full scale distribution in September 2024 .

In sum, 2024 has all the earmarks of another superb year as the growth catalysts currently far outweigh the headwinds.

INTER PARFUMS, INC.

We have a large number of holiday programs planned as well as the launch of the Roberto Cavalli Wild Heart duo planned for the fourth quarter.

While the pace of growth in the market is starting to slow down, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Net Sales to Customers by Region

Six Months Ended

Nine Months Ended

(In millions)

September 30,

North America

3 unchanged sentences

Eastern Europe

In the first half of 2024 , second quarter sales in our largest market, North America, rose 5 %, followed by Western Europe and Asia/Pacific where comparable half year sales in both regions increased 11 % and 6 %, respectively.

Our sales in Central and South America and the Middle East and Africa were also robust, up 26 % and 8 %, respectively.

Additionally, our travel retail business is continuing to show signs of renewed life.

Eastern Europe was adversely impacted by sourcing constraints in the first quarter, which showed signs of improvement during the second quarter 2024 .

In the nine months ended September 30, 2024, net sales

in our largest market, North America, rose 8% as compared to the prior year

period, followed by increases in the Western Europe and Asia/Pacific markets of

16% and 9%, respectively.

Our net sales in Central and South America and the

Middle East and Africa were also robust, up 24 %

and 4 %, respectively in the nine months ended

September 30, 2024 as compared to the prior year period.

Additionally, our

travel retail business is continuing to strengthen.

Eastern Europe was

adversely impacted by sourcing constraints earlier in the year, which returned

to normal business levels in the third quarter of 2024 .

Gross Profit Margin

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions)

September 30,

European based operations

Cost of sales

Gross margin as a % of net sales

Gross profit margin

Gross profit margin as a % of net sales

United States based operations

Cost of sales

Gross margin as a % of net sales

The Company’s gross profit margin as a percentage of net sales was 64.5 % and 63.5 % for the three and six months ended June 30, 2024 , respectively, as compared to 60.9 % and 63.0 % for the corresponding periods of the prior year.

The increase was driven by favorable segment, geographic and channel mix, as well as certain one -time expenses related to inventory discussed further below.

As expected,the adverse impacts experienced in the first quarter of 2024 related to cost inflation began to normalize in the second quarter.

Excluding the one -time impacts related to the inventory reserves, gross margins would have decreased by approximately 50 basis points for the six months ended June 30, 2024 as compared to the corresponding period of the prior year.

For European based operations, gross profit margin as a percentage of net sales was 68.8 % and 66.3 % for the three and six months ended June 30, 2024 , respectively, as compared to 63.0 % and 65.6 % for the corresponding periods of the prior year.

European based operations were positively impacted by geographic and channel mix.

The cost inflation impacts on raw materials purchased in Europe related to increased energy costs largely abated in second quarter.

Excluding the one -time impacts related to the inventory reserves, gross margins would have decreased by approximately 70 basis points for the six months ended June 30, 2024 as compared to the corresponding period of the prior year.

INTER PARFUMS, INC.

Gross profit margin

Gross profit margin as a % of net sales

The Company’s gross profit margin as a percentage of net sales was 63.9 % and 63.6 % for the three and nine months ended September 30, 2024 , respectively, as compared to 63.9 % and 63.3 % for the corresponding periods of the prior year.

The increase in the nine month period ending September 30, 2024 as compared to the prior year period was driven by the impact of certain one-time expenses related to inventory in 2023 partially offset by un favorable segment, brand and channel mix in the current year.

Gross profit margins remained flat from the same three month period in the prior year.

For European based operations, gross profit margin as a percentage of net sales was 66.2 % and 66.3 % for the three and nine months ended September 30, 2024 , respectively, as compared to 68.6 % and 66.6 % for the corresponding periods of the prior year.

European based operations were negatively impacted by brand and channel mix during the three and nine months ended September 30, 2024 as compared to the prior year period.

INTERPARFUMS, INC.

AND SUBSIDIARIES

For United States based operations, gross profit margin as a percentage of net sales was 56.5 % and 57.5 % for the three and six months ended June 30, 2024 , respectively, as compared to 57.2 % and 57.4 % for the corresponding periods of the prior year.

The decrease in the second quarter was driven by a slightly unfavorable brand mix, with gross margins remaining flat from the same half year period in the prior year.

Generally, we do not bill customers for shipping and handling costs, and such costs, which aggregated $ 2.5 million and $ 5.0 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 3.6 million and $ 7.5 million for the corresponding periods of the prior year , are included in selling, general and administrative expenses in the consolidated statements of income.

For United States based operations, gross profit margin as a percentage of net sales was 59.2 % and 58.2 % for the three and nine months ended September 30, 2024 , respectively, as compared to 55.6 % and 56.7 % for the corresponding periods of the prior year.

The increase in both periods was driven by favorable brand and channel mix.

Generally, we do not bill customers for shipping and handling costs, and such costs, which aggregated $ 3.8 million and $ 8.8 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 3.9 million and $ 11.4 million for the corresponding periods of the prior year , are included in selling, general and administrative expenses in the consolidated statements of income.

As such, our Company’s gross profit may not be comparable to other companies, which may include these expenses as a component of cost of goods sold.

The improvement in shipping and handling costs in the first half of 2024 as compared to corresponding period in 2023 was a direct benefit of lower transportation costs seen globally.

The improvement in shipping and handling costs during the three and nine months ended September 30, 2024 as compared to corresponding periods in 2023 is a direct benefit of lower transportation costs seen globally.

Selling, general and administrative expenses

Three Months Ended

Six Months Ended

Nine Months Ended

(In millions)

September 30,

European based operations

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Selling, general and administrative expenses as a percent of net sales

The Company’s selling, general and administrative expenses as a percentage of net sales was 45.6 % and 43.6 % for the three and six months ended June 30, 2024 as compared to 43.1 % and 39.6 % for the three and six months ended June 30, 2023 .

The increase was largely driven by increased spending on promotional and advertising activities in both the second quarter and first half of 2024 as compared to the prior year periods.

Additionally, starting in 2024 , the Company began to amortize the cost of the Lacoste license which represented $ 3.2 million during the first half of the year.

These costs will be incurred at approximately $ 1.6 million quarterly over the remaining life of the license.

For European based operations, selling, general and administrative expenses increased 21.2 % and 19.2 % for the three and six months ended June 30, 2024 as compared to the corresponding period of the prior year, and represented 47.8 % and 43.4 % of net sales for the three and six months ended June 30, 2024 , respectively, as compared to 45.1 % and 38.9 % for the three and six months ended June 30, 2023 , respectively.

The Company’s selling, general and administrative expenses as a percentage of net sales were 38.9 % and 41.8% for the three and nine months ended September 30, 2024 as compared to 40.2 % and 39.8 % for the three and nine months ended September 30, 2023 .

The increase in the first three quarters of the year was largely driven by increased spending on promotional and advertising activities as compared to the prior year period.

Additionally, starting in 2024 , the Company began to amortize the cost of the Lacoste license which represented $4.8 million during the first nine months of the year.

These costs are being incurred at approximately $1.6 million quarterly over the remaining life of the license.

The decrease in the third quarter was driven by the phasing of promotional and advertising activities by our European based operations discussed in detail below.

For European based operations, selling, general and administrative expenses increased 9.6 % and 15.6 % for the three and nine months ended September 30, 2024 as compared to the corresponding period of the prior year, and represented 38.3 % and 41.5 % of net sales for the three and nine months ended September 30, 2024 , respectively, as compared to 42.3 % and 40.1 % for the three and nine months ended September 30, 2023 , respectively.

As discussed above, this increase is driven by increased promotion and advertising spending as well as the impact of the amortization of the Lacoste license.

For United States based operations, selling, general and administrative expenses increased 8.2 % and 15.4 % for the three and six months ended June 30, 2024 , as compared to the corresponding period of the prior year, and represented 39.8 % and 42.5 % of net sales for the three and six months ended June 30, 2024 , respectively, as compared to 39.7 % and 41.3 % for the three and six months ended June 30, 2024 , respectively.

The increase was largely driven by continued investment in infrastructure and headcount to support the growth of the business.

Promotion and advertising included in selling, general and administrative expenses aggregated $ 66.4 million and $ 114.7 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 54.6 million and $ 89.8 million for the corresponding periods of the year and represented 19.4 % and 17.2 % of net sales for the three and six months ended June 30, 2024 , respectively, as compared to 17.7 % and 14.5 % for the corresponding periods of the prior year..

While promotion and advertising spend increased on a year to date basis, a portion of the activities planned for the third quarter were pushed into the fourth quarter resulting in a decrease in selling, general and administrative expenses as a percentage of net sales in the current quarter as compared to the prior year period.

For United States based operations, selling, general and administrative expenses increased 16.1 % and 15.7 % for the three and nine months ended September 30, 2024 , as compared to the corresponding period of the prior year, and represented 39.0 % and 41.1 % of net sales for the three and nine months ended September 30, 2024 , respectively, as compared to 36.5 % and 39.3 % for the three and nine months ended September 30, 2023 , respectively.

The increase was largely driven by continued investment in infrastructure and headcount to support the growth of the business as well as increased promotional and advertising spending.

Promotion and advertising included in selling, general and administrative expenses aggregated $66.8 million and $181.5 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 62.8 million and $ 152.6 million for the corresponding periods of the prior year and represented 15.7% and 16.6% of net sales for the three and nine months ended September 30, 2024 , respectively, as compared to 17.1 % and 15.4 % for the corresponding periods of the prior year.

Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new pr oduct launches and to build brand awareness.

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Beginning in 2024 , the Company implemented a strategy to increase spending in the first half of the year to better support and drive business growth throughout the year.

Additionally, as the second quarter of 2024 saw a lighter innovation program than prior years, the Company focused on increasing promotional and advertising spending to support the continued success of our existing brands and to support the initial launch of our new brands, Lacoste and Roberto Cavalli.

Additionally, as the first three quarters of 2024 saw a lighter innovation program than prior years, the Company focused on increasing promotional and advertising spending to support the continued success of our existing brands and to support the initial launches of our new brands, Lacoste and Roberto Cavalli.

We also continue to develop and implement omnichannel concepts and compelling content to deliver an integrated consumer experience.

Long term, we continue to anticipate that on a full year basis, promotion and advertising expenditures will aggregate approximately 21 % of net sales.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Royalty expense included in selling, general and administrative expenses aggregated $ 27.0 million and $ 54.2 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 24.0 million and $ 48.1 million for the corresponding periods of the prior year.

Royalty expense represented 7.9 % and 8.1 % of net sales for the three and six months ended June 30, 2024 , respectively, as compared to 7.8 % and 7.7 % of net sales for the corresponding periods of the prior year.

Royalty expense included in selling, general and administrative expenses aggregated $34.0 million and $88.2 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 29.1 million and $ 77.2 million for the corresponding periods of the prior year.

Royalty expense represented 8.0% and 8.1% of net sales for the three and nine months ended September 30, 2024 , respectively, as compared to 7.9 % and 7.8 % of net sales for the corresponding periods of the prior year.

This increase was primarily driven by unfavorable brand mix.

Income from Operations

As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 18.9 % and 19.9 % for the three and six months ended June 30, 2024 , respectively, as compared to 17.8 % and 23.4 % for the corresponding periods of the prior year.

As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 25.0% and 21.9% for the three and nine months ended September 30, 2024 , respectively, as compared to 23.7 % and 23.5 % for the corresponding periods of the prior year.

Other Income and Expense

Overall, other income and expense for the six months ended June 30, 2024 , was $ 1.5 million as compared to a gain of $ 2.8 million in the corresponding prior year period.

The main driver of the decrease was the one -time gain recognized in 2023 related to the sale of marketable securities discussed below.

Overall, other income and expense for the nine months ended September 30, 2024 , was a loss of $7.1 million as compared to a gain of $2.2 million in the corresponding prior year period.

The main drivers of this change are discussed in more detail below.

These include an increase in interest expense on borrowings of $0.3 million, a loss on foreign currency of $3.7 million, and a reduction of interest income related to cash and cash equivalents and short-term investments of $1.4 million.

Additionally, there was a one-time gain of $3.1 million recognized in 2023 related to the sale of marketable securities.

Interest expense is primarily related to the financing of brand and licensing acquisitions.

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The swap effectively exchanges the variable interest rate to a fixed rate of approximately 1.1 %.

Long-term debt including current maturities aggregated $ 137.2 million and $ 157.5 million as of June 30, 2024 and December 31, 2023 , respectively.

Additionally in July 2024, the Company entered into a $44.8 million (€40 million) three-year loan agreement that bears a fixed interest rate of 4.03%.

The loan was used to purchase additional short-term investments.

Long-term debt including current maturities aggregated $179.1 million and $ 157.5 million as of September 30, 2024 and December 31, 2023 , respectively.

We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency.

1 unchanged sentence

Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements.

Such gains and losses were immaterial in the three and six months ended June 30, 2024 and 2023 .

Interest and investment income represents interest earned on cash and cash equivalents and short-term investments.

As of June 30, 2024 , short-term investments include approximately $ 8.8 million of marketable equity securities of other companies in the luxury goods sector.

Such gains and losses were immaterial in the three and nine months ended September 30, 2024 and 2023 .

Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities.

Interest income was $2.5 million in the nine months ended September 30, 2024 compared to $3.9 million in the prior year period.

As of September 30, 2024 , short-term investments also include approximately $8.9 million of marketable equity securities of other companies in the luxury goods sector.

In the first quarter of 2023 , the Company sold marketable securities which generated a gain of $ 3.1 million.

The Company purchased additional marketable securities throughout 2023 and in the first half of 2024 , resulting in an unrealized loss of $ 0.6 million for the first half of 2024 .

Our consolidated effective tax rate was 23.9 % and 23.4 % for the six months ended June 30, 2024 and 2023 , respectively.

The effective tax rate for European based operations was 25.0 % for both the six months ended June 30, 2024 and 2023 , while the effective tax rate for United States based operations was 19.9 % for the six months ended June 30, 2024 , as compared to 17.4 % for the corresponding period of the prior year.

The Company purchased additional marketable securities throughout 2023 and in the first nine months of 2024 , resulting in an unrealized loss of $0.9 million for the first nine months of 2024 .

Our consolidated effective tax rate was 23.7% and 23.5 % for the nine months ended September 30, 2024 and 2023 , respectively.

The effective tax rate for European based operations was 25.0% for both the nine months ended September 30, 2024 and 2023 , while the effective tax rate for United States based operations was 19.8% for the nine months ended September 30, 2024 , as compared to 18.8 % for the corresponding period of the prior year.

Our effective tax rate for United States based operations differs from the 21 % statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign derived intangible income, slightly offset by state and local taxes.

Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Three Months Ended

Six Months Ended

Nine Months Ended

(In thousands)

September 30,

Net income attributable to European based operations

1 unchanged sentence

Net income attributable to the noncontrolling interest

Net income attributable to Inter Parfums, Inc.

was $ 36.8 million and $ 77.9 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 35.0 million and $ 89.0 million for the corresponding periods of the prior year.

Net income attributable to European based operations was $ 33.2 million and $ 78.1 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 27.0 million and $ 87.5 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $ 15.2 million and $ 24.8 million for the three and six months ended June 30, 2024 , respectively, as compared to $ 15.6 million and $ 25.9 million for the corresponding periods of the prior year.

Net income attributable to Interparfums, Inc.

was $ 62.3 million and $ 140.1 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 53.2 million and $ 142.2 million for the corresponding periods of the prior year.

Net income attributable to European based operations was $ 54.4 million and $ 132.6 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 46.0 million and $ 133.5 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $ 24.3 million and $ 49.0 million for the three and nine months ended September 30, 2024 , respectively, as compared to $ 20.2 million and $ 46.1 million for the corresponding periods of the prior year.

The significant fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.

The noncontrolling interest arises from our 72 % owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28 % of Interparfums SA shares trade on the Euronext.

Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 28 % of European based operations net income for both the six months ended June 30, 2024 and 2023 .

Net profit margins attributable to Inter Parfums, Inc.

as of June 30, 2024 and 2023 aggregated 11.7 % and 14.3 %, respectively.

Net profit margins attributable to Interparfums, Inc.

for the nine months ended September 30, 2024 and 2023 aggregated 12.8% and 14.4 %, respectively.

Liquidity and Capital Resources

Our conservative financial tradition has enabled us to amass significant cash balances.

As of June 30, 2024 , we had $ 77 million in cash, cash equivalents and short-term investments, most of which are held in euro by our European based operations and is readily convertible into U.S.

As of September 30, 2024 , we had $157.2 million in cash, cash equivalents and short-term investments, most of which are held in euro by our European based operations and is readily convertible into U.S.

We have not had any liquidity issues to date, and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments.

As of June 30, 2024 , working capital aggregated $ 525 million.

As of September 30, 2024 , working capital aggregated $617 million.

Approximately 76% of the Company’s total assets are held by European based operations, and approximately $253 million of trademarks, licenses and other intangible assets are also held by European based operations.

3 unchanged sentences

Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2023 , without consideration for potential renewal periods and do not reflect the fact that our distributors share our advertising obligations.

INTER PARFUMS, INC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

1 unchanged sentence

Discussions have been underway since 2023 with a view to renewing the Van Cleef & Arpels license agreement.

The license is to be renewed for an

additional 9-year term, beginning January 1, 2025.

The license is to be renewed for an additional 9 -year term, beginning January 1, 2025.

In July 2023, we entered into a global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Roberto Cavalli brand.

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This license took effect and products started to ship in January 2024.

Cash used in operating activities aggregated $ 26.5 million for the six months ended June 30, 2024 and cash provided by operating activities aggregated $ 6.8 million for the six months ended June 30, 2023 .

For the six months ended June 30, 2024 , working capital items used $ 140.2 million in cash from operating activities, as compared to $ 115.4 million in the 2023 period.

Although from a cash flow perspective accounts receivables are up 24 % from year end 2023 , the balance is reasonable based on second quarter 2024 record sales levels and seasonality of the business.

Although day’s sales outstanding was 72 days, up from 65 days in the corresponding period of the prior year, we are down from 73 days at the end of the first quarter of 2024 , are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable.

From a cash flow perspective, inventory levels as of June 30, 2024 increased 19 % from year end 2023 in support of our overall sales growth as well as the building up of inventory related to the inclusion of the Lacoste and Roberto Cavalli licenses which require large inventory needs to support the launches of these brands.

Additionally, as we are working to manage down our inventory levels, we have seen increased conversion of raw materials into finished goods resulting in finished goods making up 60 % of our inventory levels at June 30, 2024 as compared to 52 % at June 30, 2023.

Since 2021 , we have strived to carry more inventory overall, source the same components from multiple suppliers and when possible, manufacture products closer to where they are sold.

Cash provided by operating activities aggregated $ 49.7 million for the nine months ended September 30, 2024 and compared to $ 24.3 million for the nine months ended September 30, 2023 .

For the nine months ended September 30, 2024 , working capital items used $147.0 million in cash from operating activities, as compared to $ 169.1 million in the 2023 period.

Although from a cash flow perspective accounts receivables are up 41% from year end 2023 , the balance is reasonable based on third quarter 2024 record sales levels and seasonality of the business.

While day’s sales outstanding was 83 days, up from 71 days in the corresponding period of the prior year driven by changes in our channel mix, we are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable.

From a cash flow perspective, inventory levels as of September 30, 2024 increased 9% from year end 2023 in support of our overall sales growth as well as the building up of inventory related to the inclusion of the Lacoste and Roberto Cavalli licenses which require large inventory needs to support the launches of these brands.

Additionally, as we are working to manage down our inventory levels, we have seen increased conversion of raw materials into finished goods resulting in finished goods making up 63% of our inventory levels at September 30, 2024 as compared to 58% at September 30, 2023 .

Due to past supply constraints, we had strived to carry more inventory overall, source the same components from multiple suppliers and when possible, manufacture products closer to where they are sold.

These constraints have largely abated and we are gradually reversing some of these previous interventions.

We are beginning to see the impacts of these recent inventory management efforts and will continue to work to optimize inventory levels.

Cash flows provided by investing activities in 2024 reflect purchases and sales of short-term investments.

These investments consist of certificates of deposit with maturities greater than three months, marketable equity securities and other contracts.

At June 30, 2024 , approximately $ 2 .

0 million of certificates of deposit contain penalties where we would forfeit a portion of the interest earned in the event of early withdrawal.

At September 30, 2024 , approximately $2.2 million of certificates of deposit contain penalties where we would forfeit a portion of the interest earned in the event of early withdrawal.

Our business is not capital intensive as we do not own any manufacturing facilities.

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Capital expenditures also include amounts for office fixtures, computer equipment and industrial equipment needed at our distribution centers.

Cash flows used in financing activities in the first half of 2024 reflect issuances and repayments of debt and payment of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at June 30, 2024 , and by short-term credit lines provided by domestic and foreign banks.

Cash flows used in financing activities in 2024 reflect issuances and repayments of debt and payment of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at September 30, 2024 , and by short-term credit lines provided by domestic and foreign banks.

The principal credit facilities for 2024 consist of a $25 million unsecured revolving line of credit provided by a domestic commercial bank and approximately $8 million in credit lines provided by a consortium of international financial institutions.

There was $ 18.5 million of short-term borrowings outstanding pursuant to these facilities as of June 30, 2024 and $ 5 million outstanding as of June 30, 2023 .

There was $9.0 million of short-term borrowings outstanding pursuant to these facilities as of September 30, 2024 and $ 4.5 million outstanding as of September 30, 2023 .

In February 2023, the Board of Directors authorized an annual dividend of $ 2.50 per share.

In February 2024, the Board of Directors further increased the annual dividend to $ 3.00 per share.

The next quarterly cash dividend of $ 0.75 per share is payable on September 30, 2024, to shareholders of record on September 13, 2024.

The next quarterly cash dividend of $0.75 per share is payable on December 31, 2024, to shareholders of record on December 16, 2024.

We believe that funds provided by or used in operations can be supplemented by our present cash position and available credit facilities, so that they will provide us with sufficient resources to meet all present and reasonably foreseeable future operating needs.

Inflation rates in the United States and foreign countries in which we operate did impact operating results for the six months ended June 30, 2024 , as they resulted in slightly higher costs of inventory and were not fully offset by price increases we passed onto our respective customers or operating efficiencies.

INTER PARFUMS, INC.

Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the nine months ended September 30, 2024

INTERPARFUMS, INC.

AND SUBSIDIARIES

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements