What changed in this filing

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Item 1. Financial Statements

2025-05-05 compared with 2024-11-06 · 239 added, 264 removed, 465 unchanged (52% of the section changed)

11 unchanged sentences

year ended December 31, 2024 , included in our annual report filed on Form 10-K.

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

results of operations for the three months ended March 31, 2025 , are not necessarily indicative of the results to be expected

for the entire fiscal year.

3 unchanged sentences

thousands except share and per share data)

September 30, 2024

March 31, 2025

December 31, 2024

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authorized 100,000,000 shares;

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

outstanding 32,124,000 and 32,110,170 shares at March 31, 2025 and December 31, 2024 , 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 September 30, 2024 and December 31, 2023 , respectively

Treasury stock, at cost, 9,981,665 and 9,981,665 shares at March 31, 2025 and December 31, 2024 , respectively

Total Interparfums, Inc.

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Three Months Ended

Nine Months Ended

September 30,

Cost of sales

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Loss (gain) on foreign currency

Interest and investment loss (income)

Other loss (income)

Interest and investment income

Other (income) loss

Nonoperating Income (Expense)

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Three Months Ended

Nine Months Ended

September 30,

Comprehensive income:

Other comprehensive income:

Net derivative instrument loss, net of tax

Net derivative instrument gain (loss), net of tax

Transfer from OCI into earnings

Pension benefits, net of tax

Translation adjustments, net of tax

2 unchanged sentences

Other comprehensive income:

Net derivative instrument loss, net of tax

Net derivative instrument gain (loss), net of tax

Pension benefits, net of tax

Translation adjustments, net of tax

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Three Months Ended

Nine Months Ended

September 30,

Common stock, beginning and end of period

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Transfer from other comprehensive income into earnings

Net derivative instrument loss, net of tax

Pension benefits, net of tax

Net derivative instrument gain (loss), net of tax

Accumulated other comprehensive loss, end of period

Treasury stock, beginning of period

Shares repurchased

Treasury stock, end of period

Treasury stock, beginning and end of period

Noncontrolling interest, beginning of period

Foreign currency translation adjustment, net of tax

Net derivative instrument loss, net of tax

Pension benefits, net of tax

Net derivative instrument gain (loss), net of tax

Share-based compensation

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(In thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

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Income taxes, net

Net cash provided by operating activities

Net cash used in operating activities

Cash flows from investing activities:

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Cash flows from financing activities:

Proceeds from loans payable, bank

Proceeds from issuance of long-term debt

Repayment of (proceeds from) loans payable, bank

Repayment of long-term debt

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Dividends paid to noncontrolling interest

Purchase of treasury stock

Net cash used in financing activities

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Recent Agreements:

Annick Goutal

In March 2025, we announced that our 72 % owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe.

Amorepacific Europe will continue to operate the Goutal Brand under an existing license agreement that expires on December 31, 2025 , when Interparfums SA will begin commercial use of the fragrance brand.

In 2015 , Coach and Interparfums SA signed an exclusive worldwide license agreement for the creation, the manufacturing and the distribution of fragrances under the Coach brand until June 30, 2026.

In March 2025, the license agreement was renewed for an additional 5 -year term, extending the license through June 30, 2031 .

Abercrombie & Fitch and Hollister

In March 2025, we expanded our Fierce distribution agreement, which now allows for a global distribution of the iconic Fierce fragrance line that either party may terminate on two year ’s notice.

Furthermore, our existing Abercrombie & Fitch and Hollister fragrance license agreement will expire on March 14, 2028 .

The goal of the updated Fierce distribution agreement is to drive, over time, more consistency between the products that are carried in the Abercrombie & Fitch stores and unaffiliated retailers.

In December 2024, we announced that our 72 % owned French subsidiary, Interparfums SA, signed for all Off-White® brand names and registered trademarks for Class 3 fragrance and cosmetic products, subject to an existing license that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brand.

Van Cleef & Arpels

In 2006 , Van Cleef & Arpels and Interparfums SA signed a 12 -year worldwide license agreement to manufacture and distribute perfumes and related products under the Van Cleef & Arpels brand name, which was subsequently extended for a further six years until December 31, 2024.

Discussions have been underway since 2023 with a view to renewing the license agreement.

The new agreement will

strengthen the selective distribution of Van Cleef & Arpels fragrances worldwide.

The license is to be renewed for an

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

Abercrombie & Fitch

In 2023 , we announced our agreement to distribute Abercrombie & Fitch’s number one men’s fragrance , Fierce , in selected markets.

The first phase of the agreement, which became effective on September 1, 2023, covers Fierce distribution in certain major markets, including Europe, Mexico and Australia.

The second phase, which activated in February 2024, covers distribution in additional markets in Western Europe and Latin America, and may include other flankers of the Fierce family of products.

In December 2024, the license agreement was renewed for an additional 9 -year term, through December 31, 2033.

Roberto Cavalli

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We began shipping Lacoste fragrances in January 2024.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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

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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, resulting in a net book value for the trademark of $ 11.9 million.

As a result of operational challenges faced by the Rochas Fashion business we took a $ 2.4 million impairment charge on our Rochas fashion trademark in the first quarter of 2021 and a $ 6.8 million impairment charge in the fourth quarter of 2022 after an independent expert concluded that the valuation of the trademark was $ 11.2 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

Notes to Consolidated Financial Statements

Land and Building Acquisition - Headquarters in Paris

In April 2021, Interparfums SA, our 72 % owned French Subsidiary, completed the acquisition of its headquarters at 10 rue de Solférino in the 7 th arrondissement of Paris from the property developer.

This is an office complex combining three buildings connected by two inner courtyards, and consists of approximately 40,000 total sq.

The purchase price included the complete renovation of the site.

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.

The building, which was delivered on February 28, 2022, includes the building structure, development of the property, façade waterproofing, general and technical installations and interior fittings that will be depreciated over a range of 7 to 50 years.

The Company has elected to depreciate the building cost based on the useful lives of its components.

The acquisition was financed by a 10 -year € 120 million (approximately $ 134.4 million) bank loan which bears interest at one-month Euribor plus 0.75% .

Approximately € 80 million of the variable rate debt was swapped for variable interest rate debt with a maximum rate of 2 % per annum.

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

In the fourth quarter of 2024 , we again took a $ 4.0 million impairment charge on the Rochas fashion trademark after management reviewed and agreed with an independent expert's conclusion that the valuation of the trademark was $ 7.2 million.

There have been no triggering events through first quarter of 2025 to require additional impairment analysis.

Recent Accounting Pronouncements:

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.

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2024 - 03 , Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40 ):

Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU No.

2025 - 01 , Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ):

Clarifying the Effective Date, which clarified the effective date of ASU 2024 - 04 .

The ASU requires, among other things, more detailed disclosures about types of expenses in commonly presented expense captions such as cost of sales and selling, general and administrative expenses and is intended to improve the disclosures about an entity's expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization.

ASU 2024 - 03 will also require the Company to disclose both the amount and the Company's definition of selling expenses.

The guidance, as clarified by ASU 2025 - 01 , is effective for fiscal years beginning after December 15, 2026, and interim periods for fiscal years beginning after December 15, 2027, on a prospective or retrospective basis.

Early adoption is permitted.

We are currently

evaluating the impact of adopting this ASU on our disclosures.

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

In December 2023, the FASB issued ASU No.

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(In thousands)

September 30, 2024

March 31, 2025

December 31, 2024

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

Fair Value Measurements at September 30, 2024

Fair Value Measurements at March 31, 2025

Quoted Prices in

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Foreign currency forward exchange contracts accounted for using hedge accounting

Total Liabilities

INTERPARFUMS, INC.

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derivative instrument is recorded at fair value and changes in fair value are reflected in the accompanying consolidated statements

and losses in derivatives designated as hedges are accumulated in other comprehensive income (loss) and gains and losses in derivatives

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 loss (gain) on foreign currency on the accompanying consolidated statements of income.

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

Such gains and losses were immaterial for the three months ended March 31, 2025 and 2024 , respectively.

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

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The valuation

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 .

of foreign currency forward exchange contracts at March 31, 2025 , resulted in a net asset and is included in other current assets on the accompanying consolidated balance sheet.

At March 31, 2025 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 161 million which all have maturities of less than one year .

INTERPARFUMS, INC.

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the present value of lease payments.

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

of March 31, 2025 , the weighted average remaining lease term was 3.9 years and the weighted average discount rate used to determine

the operating lease liability was 3.2 %.

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.

Rental expense related to operating leases was $ 1.6 million and $ 1.6 million for the three months ended March 31, 2025 and 2024 , respectively .

Operating lease payments included in operating cash flows totaled $ 1.9

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.

The plans, all of which have been approved

by shareholder vote, provide for the granting of both nonqualified and incentive options.

Options granted under the plans typically

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

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

recognized on a straight-line basis over the requisite service period for the entire award.

Forfeitures are estimated based on

historic trends.

million and $ 1.5 million for the three months ended March 31, 2025 and 2024 , respectively, and noncash additions to operating lease assets totaled $ 0.03 millio n and $ 0.2 million for the three months ended March 31, 2025 and 2024 , respectively.

Share-Based Payments:

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

The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options.

Options granted under the plans typically have a six -year term and vest over a four to five -year period.

The fair value of shares vested during the three months ended March 31, 2025 and 2024 aggregated $ 0.02 million and $ 0.04 million , respectively.

Compensation cost, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for the entire award.

Forfeitures are estimated based on historic trends.

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 nine months ended September 30, 2024 :

The following table sets forth information with respect to nonvested options for the three months ended March 31, 2025 :

Number of Shares

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Notes to Consolidated Financial Statements

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 :

Share-based payment expense decreased income before income taxes by $ 0.56 million and $ 0.59 million for the three months ended March 31, 2025 and 2024 respectively, and decreased income attributable to Interparfums, Inc.

by $ 0.36 million and $ 0.39 million for the three months ended March 31, 2025 and 2024 respectively .

The following table summarizes stock option information as of March 31, 2025 :

Weighted Average

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Options exercised

Outstanding at September 30, 2024

Outstanding at March 31, 2025

Options exercisable

Options available for future grants

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

exercisable);

the aggregate intrinsic value of options outstanding and options exercisable is $ 12.6 million and $ 9.7 million ,

respectively;

As of March 31, 2025 , the weighted average remaining contractual life of options outstanding is 3.2 years ( 1.5 years for options exercisable);

the aggregate intrinsic value of options outstanding and options exercisable is $ 4.5 million and $ 4.0 million , respectively;

and unrecognized compensation cost related to stock options outstanding aggregated $ 3.1 million.

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

2023 were as follows:

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the three months ended March 31, 2025 and 2024 were as follows:

(In thousands)

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Cash proceeds from stock options exercised

Intrinsic value of stock options exercised

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 historical data.

There were no options granted during the three months ended March 31, 2025 and March 31, 2024 .

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

The expected term of the option is estimated based on historical data.

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

Treasury yield curve in effect at the time of the grant of the

option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors maintain

its current payout ratio as a percentage of earnings.

In March 2022, Interparfums

SA, our 72 % owned French Subsidiary, approved a plan to grant an aggregate of 88,400 shares of its stock to all Interparfums SA

employees and corporate officers having more than six months of employment at grant date, subject to certain corporate performance

Treasury yield curve in effect at the time of the grant of the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors maintain its current payout ratio as a percentage of earnings.

In March 2022, Interparfums SA, our 72 % owned French Subsidiary, approved a plan to grant an aggregate of 88,400 shares of its stock to all Interparfums SA employees and corporate officers having more than six months of employment at grant date, subject to certain corporate performance conditions.

The shares, subject to adjustment for stock splits, will be distributed in June 2025.

fair value of the grant had been determined based on the quoted stock price of Interparfums SA shares as reported by the Euronext

on the date of grant.

The estimated number of shares to be distributed of 103,409 has been determined taking into account employee

The aggregate cost of the grant of approximately $ 4.2 million will be recognized as compensation cost on a straight-line

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

The fair value of the grant had been determined based on the quoted stock price of Interparfums SA shares as reported by the Euronext on the date of grant.

The estimated number of shares to be distributed of 105,395 has been determined taking into account employee turnover.

The aggregate cost of the grant of approximately $ 4.2 million will be recognized as compensation cost on a straight-line basis over the requisite three and a quarter year service period.

INTERPARFUMS, INC.

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Notes to Consolidated Financial Statements

order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed or to be distributed pursuant

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

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.

In order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed or to be distributed pursuant to these plans will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA.

As of March 31, 2025 the Company acquired 96,371 shares at an aggregate cost of $ 4.1 million .

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

Net Income Attributable to Interparfums, Inc.

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Three months ended

Nine months ended

(In thousands)

September 30,

Net income attributable to Interparfums, Inc.

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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 nine months ended September 30, 2024 .

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

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.04 million and 0.05 million shares of common stock for the three months ended March 31, 2025 and 2024 , respectively.

INTERPARFUMS, INC.

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

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.

The 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 United 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.

Information on our operations by segments is as follows:

(In thousands)

Three Months Ended

Nine Months Ended

September 30,

Information on the Company’s operations by segments is as follows:

Three months ended March 31, 2025

United States

Eliminations of intercompany sales

Net income attributable to Interparfums, Inc.:

based operations

Eliminations (a)

Cost of sales

Eliminations (a)

Segment gross margin

Advertising and Promotion

Employee related costs

Other segment items (c)

Segment income from operations

Reconciliation:

Interest expense

Loss on foreign currency

Interest and investment income

Income before income taxes

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Three months ended March 31, 2024

United States

based operations

Eliminations (a)

Cost of sales

Eliminations (a)

Segment gross margin

Advertising and Promotion

Employee related costs

Other segment items (c)

Segment income from operations

Reconciliation:

Interest expense

Gain on foreign currency

Interest and investment income

Other expense

Income before income taxes

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

September 30,

The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

Other segment items for each reportable segment include expenses for professional services, travel & entertainment, rent, warehousing, shipping, depreciation & amortization, and other selling, general and administrative costs.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Other segment disclosures:

Three months ended March 31,

Net income attributable to Interparfums, Inc.:

United States

Depreciation and amortization expense:

United States

Interest and investment income:

United States

Interest expense:

United States

Income tax expense:

United States

Additions to long-lived assets(a):

United States

(a) Total long-lived assets include property, equipment and leasehold improvements, trademarks, licenses, and other intangible assets, and right-of-use assets.

Total Assets:

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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 67 % of net sales for the nine months ended September 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 72% and 70% of net sales for the three months ended March 31, 2025 and 2024 , 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.

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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.

United States based operations represented 28% and 30% of net sales for the three months ended March 31, 2025 and 2024 , 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, Emanuel 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 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:

Nine Months Ended

September 30,

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

As a percentage of net sales, product sales for the Company’s largest brands represented 76% and 74%, respectively, with a split by brand as follows:

Three Months Ended

Donna Karan/DKNY

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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 as 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 approximately 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.

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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 September 30, 2024 .

Discussion of Critical Accounting Policies

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Results of Operations

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

Three Months Ended March 31, 2025 as Compared to the Three Months Ended March 31, 2024

Three Months Ended

Nine Months Ended

September 30,

(in millions)

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United States based product sales

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 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.

Net sales for the three months ended March 31, 2025 increased 5 % from the three months ended March 31, 2024 .

At comparable foreign currency exchange rates, net sales increased 6% from the first quarter of 2024 .

The average dollar/euro exchange rate for the current first quarter was 1.05 compared to 1.09 in the first quarter of 2024 .

For European based operations, sales increased 7% compared to the corresponding period of the prior year, driven by Jimmy Choo, Coach, and Lacoste, which grew by 36%, 11%, and 30%, respectively, respectively, compared to the corresponding period of the prior year.

These increases were driven by continued strong performance for the I Want Choo and Jimmy Choo Man franchises, the introduction of Coach Man Extreme , and strong demand for Lacoste as the brand entered its second year under our management.

Sales of Montblanc declined by 16%, which was driven by the substantial increase in sales in the first quarter of 2024 following the debut of Legend Blue .

Sales are expected to increase through the balance of 2025 with the introduction of Montblanc Explorer Extreme later this year.

Sales by our United States based operations grew from an organic perspective 3% of a high 2024 base when first quarter organic sales expanded by 11%.

Overall, on a reported basis, sales declined by 1 % in the first quarter of 2025 compared to the corresponding period of the prior year, as a result of the discontinuation of the Dunhill license which had a 4% negative impact.

Donna Karan/DKNY fragrance sales rose by 5% resulting from the continued strength of our Cashmere Mist franchise and MCM sales grew by 17% with the rollout of the MCM Collection .

Following the start of its fragrance distribution in February 2024, Roberto Cavalli delivered a 28% increase in net sales.

Sales of GUESS declined slightly during the quarter off a very high base in first quarter of 2024 when sales grew by 21%.

The first quarter growth was ahead of expectations, and we are confident in our future as we look forward to executing our plans for the remainder of 2025 .

A new blockbuster for Ferragamo, Fiamma , debuted at the end of March 2025 and a new blockbuster, Roberto Cavalli Serpentine, will launch in the second quarter.

We have a large number of brand extensions across many of our brands launching throughout the year, including a new flankers for Coach Woman , Lacoste L.12.12 and Original in the second quarter and a new flanker for I Want Choo in the second half of 2025.

Additionally, extensions are set to debut for Donna Karan Cashmere Collection , GUESS Bella Vita , and DKNY 24/7.

While the pace of growth in the fragrance 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.

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Net Sales to Customers by Region

Nine Months Ended

Three Months Ended

(In millions)

September 30,

North America

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Eastern Europe

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

In the three months ended March 31, 2025 , net sales

in our largest market, North America, rose 14% 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 .

period, followed by an increase in the Western Europe of 1%.

Our sales in Asia/Pacific decreased slightly by 3% driven by a higher base from 2024 in Australia.

Our net sales in Eastern Europe were also robust, up 46% in the three months ended March 31, 2025 as compared to the prior year period where we faced temporary sourcing constraints.

Central and South America net sales declined 10%, also off a high base in 2024 when the region grew 31%.

Middle East and Africa net sales declined 16% due to macroeconomic challenges and a disproportionate impact from the exit of the Dunhill license due to its significant presence there.

Gross Profit Margin

Three Months Ended

Nine Months Ended

(in millions)

September 30,

European based operations

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Gross profit margin

Gross profit margin as a % of net sales

Gross profit margin as a percentage of net sales

United States based operations

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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.

Gross profit margin as a percentage of net sales

The Company’s gross profit margin as a percentage of net sales was 63.7 % for the three months ended March 31, 2025 as compared to 62.5 % for the corresponding period of the prior year.

The increase in the three months ended March 31, 2025 as compared to the prior year period was driven by favorable segment mix in the current year.

For European based operations, gross profit margin as a percentage of net sales was 65.5 % for the three months ended March 31, 2025 , respectively, as compared to 64.0 % for the corresponding period of the prior year.

European based operations were positively impacted by brand and channel mix during the three months ended March 31, 2025 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 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 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.

For United States based operations, gross profit margin as a percentage of net sales remained flat at 58.7 % for the three months ended March 31, 2025 and 2024 due to consistent brand and channel mix.

Generally, we do not bill customers for shipping and handling costs, which 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 sales.

Selling, general and administrative expenses

Three Months Ended

Nine Months Ended

(In millions)

September 30,

European based operations

Selling, general and administrative expenses

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

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

United States based operations

Selling, general and administrative expenses

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 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.

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.

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

The Company’s selling, general and administrative expenses as a percentage of net sales were 41.6% for the three months ended March 31, 2025 as compared to 41.5 % for the three months ended March 31, 2024 .

The percentage of net sales remained relatively flat from the prior year period as promotional and advertising spending increased as a percentage of net sales by 0.3%, offset by scale benefits related to other fixed selling, general and administrative items which decreased selling, general and administrative expenses as a percentage of net sales by 0.2%.

For European based operations, selling, general and administrative expenses increased 6.2% for the three months ended March 31, 2025 as compared to the corresponding period of the prior year, and represented 38.7 % of net sales for the three months ended March 31, 2025 , as compared to 39.1% for the three months ended March 31, 2024 .

The decrease in selling, general and administrative expenses as a percentage of net sales resulted from a 0.3% reduction related to scale benefits related to fixed selling, general and administrative items, a 0.2% reduction related to royalty expense due to a favorable change in brand mix, partially offset by an increase of 0.1% related to higher advertising and promotional expenditures .

For United States based operations, selling, general and administrative expenses increased 2.1% for the three months ended March 31, 2025 , as compared to the corresponding period of the prior year, and represented 47.6 % of net sales for the three months ended March 31, 2025 , as compared to 46.0 % for the three months ended March 31, 2024 , respectively.

The increase in selling, general and administrative expenses as a percentage of net sales was largely driven by the annualization impact of the investment in infrastructure and headcount made throughout 2024 to support the growth of the business leading to increased employee related costs as percentage of net sales of 1.7% as well as increased promotional and advertising spending as a percentage of net sales of 0.7%.

These increases were offset by efficiencies related to other fixed selling, general and administrative items which decreased selling, general and administrative expenses as a percentage of sales by 0.7%.

Promotion and advertising included in selling, general and administrative expenses aggregated $51.5 million for the three months ended March 31, 2025 , as compared to $4 8.3 million for the corresponding period of the prior year and represented 15.2% of net sales for the three months ended March 31, 2025 , as compared to 14.9 % for the corresponding period 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.

We believe that our promotion and advertising efforts have a beneficial effect on sales.

Historically, the Company incurred the majority of our promotional and advertising expenditures in the second half of the year.

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 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.

As such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands.

Additionally, we 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.

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AND SUBSIDIARIES

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.

Royalty expense included in selling, general and administrative expenses aggregated $28.1 million for the three months ended March 31, 2025 , respectively, as compared to $27.2 million for the corresponding periods of the prior year.

Royalty expense represented 8.3% of net sales for the three months ended March 31, 2025 as compared to 8 .4 % of net sales for the corresponding periods of the prior year.

This slight decrease was primarily driven by favorable 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 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.

As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 22.2% for the three months ended March 31, 2025 , respectively, as compared to 21 .0 % for the corresponding period of the prior year.

Other Income and Expense

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.

Overall, other income and expense for the three months ended March 31, 2025 , was a loss of $1.7 million as compared to a gain of $2.1 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.

In December 2022, to finance the acquisition of the Lacoste trademark, the Company entered into a $56 million (€ 50 million) four -year loan agreement.

The loan agreement bears interest at EURIBOR- 1 month rates plus a margin of 0.825 %.

This variable rate debt was swapped for variable interest rate debt with a maximum rate of 2 % per annum.

Additionally, in April 2021, we completed the acquisition of the headquarters of Interparfums SA.

The acquisition was financed by a 10 -year approximately $ 128.5 million (€ 120 million) bank loan which bears interest at one -month Euribor plus 0.75 %.

Approximately $89.6 million (€ 80 million) of the variable rate debt was swapped for fixed interest rate debt with a maximum interest rate of 2 % per annum.

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

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.

One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $0.8 million in the first quarter of 2025, and a gain of $0.9 million in the first quarter of 2024.

Another driver of this change is the impact of our unrealized gains and losses on marketable securities where we had recorded an unrealized loss of $0.7 million in the first quarter of 2025 and an unrealized gain of $1.4 million in the first quarter of 2024.

Changes in interest expense and interest income were relatively flat year-over-year.

Interest expense is primarily related to the financing of brand and licensing acquisitions as well as our headquarters in Paris.

Long-term debt including current maturities aggregated $150.8 million and $157.3 million as of March 31, 2025 and December 31, 2024 , respectively.

Interest expense was $1.5 million in the three months ended March 31, 2025 compared to $1.8 million in the prior year period.

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.

Greater than 50 % of net sales of our European based operations are denominated in U.S.

Approximately 50 % of net sales of our European based operations are denominated in U.S.

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 nine months ended September 30, 2024 and 2023 .

Such gains and losses were immaterial in the three months ended March 31, 2025 and 2024 .

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 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.

Interest income was $1.3 million in the three months ended March 31, 2025 compared to $1.6 million in the prior year period.

As of March 31, 2025 , short-term investments also include approximately $7.3 million of marketable equity securities of other companies in the luxury goods sector.

In the first quarter of 2025 , the Company had unrealized losses on these securities $0.7 million on these securities compared to unrealized gains of $1.4 million for the three months ended March 31, 2024.

Our consolidated effective tax rate was 24.5% and 23.9 % for the three months ended March 31, 2025 and 2024 , respectively.

The effective tax rate for European based operations was 25.5% and 25.0% for the three months ended March 31, 2025 and 2024 , respectively, while the effective tax rate for United States based operations was 18.1% for the three months ended March 31, 2025 , as compared to 17.7 % 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.

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Three Months Ended

Nine Months Ended

(In thousands)

September 30,

Net income attributable to European based operations

3 unchanged sentences

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.

was $ 42.5 million for the three months ended March 31, 2025 as compared to $ 41.0 million for the corresponding period of the prior year.

Net income attributable to European based operations was $ 48.1 million for the three months ended March 31, 2025 , as compared to $ 44.9 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $ 8.7 million for the three months ended March 31, 2025 , as compared to $ 9.5 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 nine months ended September 30, 2024 and 2023 .

Net profit margins attributable to Interparfums, Inc.

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

for the three months ended March 31, 2025 and 2024 aggregated 12.5% and 12.7 %, respectively.

Liquidity and Capital Resources

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

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.

As of March 31, 2025 , we had $171.9 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 September 30, 2024 , working capital aggregated $617 million.

As of March 31, 2025 , working capital aggregated $604.6 million.

Approximately 78% of the Company’s total assets are held by European based operations, and approximately $277.0 million of trademarks, licenses and other intangible assets are also held by European based operations.

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The Company hopes to continue to benefit from its strong financial position to potentially acquire one or more brands, either on a proprietary basis or as a licensee.

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.

In March 2025, our 72% owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe.

Amorepacific Europe will continue to operate the Goutal Brand under an existing license agreement that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brand.

Additionally in March 2025, we renewed the Coach license agreement for an additional five-year term, extending the license through June 30, 2031.

In December 2024, our 72% owned French subsidiary, Interparfums SA, obtained all Off-White brand names and registered trademarks for Class 3 fragrance and cosmetics products, subject to an existing license that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brands.

Additionally, in December 2024, we renewed the Van Cleef & Arpels license agreement for an additional nine-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 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 .

Cash used in operating activities aggregated $7.4 million for the three months ended March 31, 2025 and compared to $ 52.0 million for the three months ended March 31, 2024 .

For the three months ended March 31, 2025 , working capital items used $72.5 million in cash from operating activities, as compared to $ 111.7 million in the 2024 period.

Although from a cash flow perspective accounts receivables are up 8% from year end 2024 , the balance is reasonable based on first quarter 2025 record sales levels and seasonality of the business.

Day’s sales outstanding remained consistent at 74 days, up slightly from 73 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 March 31, 2025 increased 3% from year end 2024 in support of our overall sales growth.

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 March 31, 2025 as compared to 55% at March 31, 2024 .

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.

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

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.

At March 31, 2025 , 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.

These proceeds were offset by the payment for capital expenditures during the quarter.

In March 2025, the Company paid approximately $19.7 million for the purchase of the Goutal Trademark.

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

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Cash flows used in financing activities in 2025 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 $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 .

Our short-term financing requirements are expected to be met by available cash on hand at March 31, 2025 , and by short-term credit lines provided by domestic and foreign banks.

The principal credit facilities for 2025 consist of a $70 million unsecured revolving line of credit provided by a consortium of domestic commercial banks and approximately $8.7 million (€8 million) in credit lines provided by a consortium of international financial institutions.

There was $7.6 million of short-term borrowings outstanding pursuant to these facilities as of March 31, 2025 and $ 8.3 million outstanding as of March 31, 2024 .

In February 2024, the Board of Directors authorized an annual dividend of $3.00 per share.

In February 2025, the Board of Directors further increased the annual dividend to $3.20 per share.

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

The next quarterly cash dividend of $0.80 per share is payable on June 30, 2025, to shareholders of record on June 13, 2025.

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 not have a significant impact on operating results for the nine months ended September 30, 2024

Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the three months ended March 31, 2025

INTERPARFUMS, INC.

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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