What changed in this filing

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Item 1. Financial Statements

2025-08-05 compared with 2025-05-05 · 182 added, 149 removed, 555 unchanged (37% of the section changed)

Financial Statements

our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring

9 unchanged sentences

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

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

results of operations for the six months ended June 30, 2025 , are not necessarily indicative of the results to be expected

for the entire fiscal year.

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thousands except share and per share data)

March 31, 2025

June 30, 2025

December 31, 2024

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authorized 100,000,000 shares;

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

outstanding 32,117,600 and 32,110,170 shares at June 30, 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 March 31, 2025 and December 31, 2024 , respectively

Treasury stock, at cost, 10,001,665 and 9,981,665 shares at June 30, 2025 and December 31, 2024 , respectively

Total Interparfums, Inc.

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Three Months Ended

Six Months Ended

Cost of sales

4 unchanged sentences

Loss (gain) on foreign currency

Interest and investment income

Other (income) loss

Interest and investment loss (income)

Nonoperating Income (Expense)

13 unchanged sentences

Three Months Ended

Six Months Ended

Comprehensive income:

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Three Months Ended

Six Months Ended

Common stock, beginning and end of period

2 unchanged sentences

Share-based compensation

Transfer of subsidiary shares purchased

Purchase/Transfer of subsidiary shares

Additional paid-in capital, end of period

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Accumulated other comprehensive loss, end of period

Treasury stock, beginning and end of period

Treasury stock, beginning of period

Shares repurchased

Treasury stock, end of period

Noncontrolling interest, beginning of period

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(In thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

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Income taxes, net

Net cash used in operating activities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

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Cash flows from financing activities:

Repayment of (proceeds from) loans payable, bank

Proceeds from loans payable, bank

Proceeds of issuance of long-term debt

Repayment of long-term debt

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Dividends paid to noncontrolling interest

Purchase of subsidiary shares from noncontrolling interests

Purchase of treasury stock

Net cash used in financing activities

Effect of exchange rate changes on cash

Net decrease in cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents - beginning of period

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to Consolidated Financial Statements

Significant Accounting Policies:

Accounting Policies:

accounting policies we follow are set forth in the notes to our consolidated financial statements included in our Form 10-K, which

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Recent Agreements:

Annick Goutal

In July 2025, we announced that our 72 % owned French subsidiary, Interparfums SA, signed an exclusive license agreement with Longchamp, a Parisian Maison, through December 31, 2036 .

Interparfums SA will be responsible for the creation, development, production and distribution of fragrance lines in Longchamp-brand points of sale and selective distribution channels.

The first launch is expected in 2027.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

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.

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We began shipping Roberto Cavalli perfumes and fragrance related products in February 2024.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

In December 2022, we closed a transaction agreement with Lacoste, whereby an exclusive and worldwide license was granted for the production and distribution of Lacoste brand perfumes and cosmetics.

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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 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.

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 fair value 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 .

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:

There have been no triggering events through the first half of 2025 that would require management to perform an impairment analysis.

Accounting Pronouncements:

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

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(In thousands)

March 31, 2025

June 30, 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 March 31, 2025

Fair Value Measurements at June 30, 2025

Quoted Prices in

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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.

Derivative Financial Instruments:

Financial Instruments:

Company enters into fo reign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign

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Before entering

into a derivative transaction for hedging purposes, it is determined that a high degree of initial effectiveness exists between

into a derivative transaction for hedging purposes, we determine that a high degree of initial effectiveness exists between

the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates.

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is also recognized as a gain or loss on foreign currency in the income statement.

For hedge contracts that are no longer deemed

For contracts designated as hedges that are no longer deemed

highly effective, hedge accounting is discontinued, and gains and losses accumulated in other comprehensive income are reclassified

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This swap is a hedged derivative instrument and is therefore recorded at fair value

and changes in fair value are reflected in other comprehensive income.

and changes in fair value are reflected in the accompanying consolidated statements of comprehensive income.

connection with the April 2021 acquisition of the office building complex in Paris, € 120 million (approximately $ 140.6 million)

of the purchase price was financed through a 10 -year term loan.

of the purchase price was financed through a 10 -year variable rate term loan.

The Company entered into interest rate swap contracts related

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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 months ended March 31, 2025 and 2024 , respectively.

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

Such gains and losses were immaterial for the six months ended June 30, 2025 and 2024 , 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 sheet.

The valuation

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 .

The fair value of interest rate swaps includes a liability position which is included in long-term debt on the accompanying consolidated balance sheet, and an asset position which is included in other assets on the accompanying balance sheet.

The fair value of foreign currency forward exchange contracts at June 30, 2025 , resulted in a net asset and is included in other current assets on the accompanying consolidated balance sheet.

At June 30, 2025 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 111 million which all have maturities of less than one year .

INTERPARFUMS, INC.

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the present value of lease payments.

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

of June 30, 2025 , the weighted average remaining lease term was 3.7 years and the weighted average discount rate used to determine

the operating lease liability was 3.1 %.

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 .

Rental expense related to operating leases was $ 1.7 million and $ 3.4 million for the three and six months ended June 30, 2025 , respectively, as compared to $ 1.7 million and $ 3.3 million for the corresponding periods of the prior year .

Operating lease payments included in operating cash flows totaled $ 4.2

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.

million and $ 2.9 million for the six months ended June 30, 2025 and 2024 , respectively, and noncash additions to operating lease assets totaled $ 0.9 millio n and $ 0.8 million for the six months ended June 30, 2025 and 2024 , respectively.

Share-Based Payments:

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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.

The fair value of shares vested during the six months ended June 30, 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.

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

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

The following table sets forth information with respect to nonvested options for the six months ended June 30, 2025 :

Number of Shares

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Notes to Consolidated Financial Statements

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 :

Share-based payment expense decresased income before income taxes by $ 0.39 million and $ 0.95 million for the three and six months ended June 30, 2025 respectively, as compared to decreases of $ 0.58 million and $ 1.17 million for the three and six months ended June 30, 2024 respectively, and decreased income attributable to Interparfums, Inc.

by $ 0.26 million and $ 0.62 million for the three and six months ended June 30, 2025 respectively, as compared to $ 0.38 million and $ 0.77 million for the corresponding periods of the prior year .

The following table summarizes stock option information as of June 30, 2025 :

Weighted Average

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Options exercised

Outstanding at March 31, 2025

Outstanding at June 30, 2025

Options exercisable

Options available for future grants

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

As of June 30, 2025 , the weighted average remaining contractual life of options outstanding is 3.0 years ( 1.3 years for options exercisable);

the aggregate intrinsic value of options outstanding and options exercisable is $ 6.2 million and $ 5.2 million , respectively;

and unrecognized compensation cost related to stock options outstanding aggregated $ 2.9 million.

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:

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2025 and 2024 were as follows:

(In thousands)

March 31, 2025

March 31, 2024

June 30, 2025

June 30, 2024

Cash proceeds from stock options exercised

Intrinsic value of stock options exercised

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

There were no options granted during the six months ended June 30, 2025 and June 30, 2024 .

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

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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.

The corporate performance conditions were met and therefore in June 2025, 106,046 shares, adjusted for stock splits, were distributed.

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.

The aggregate cost of the grant of approximately $ 4.2 million was 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

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 .

In order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed pursuant to this plan were pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA.

As of June 30, 2025 the Company acquired 106,046 shares at an aggregate cost of $ 4.5 million .

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

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Three months ended

Six Months Ended

(In thousands)

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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 0.04 million and 0.05 million shares of common stock for the three months ended March 31, 2025 and 2024 , respectively.

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.08 million shares of common stock for the three and six months ended June 30, 2025 and 0.05 million shares of common stock for the three and six months ended June 30, 2024 .

INTERPARFUMS, INC.

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

Three months ended March 31, 2025

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

United States

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based operations

United States

based operations

Eliminations (a)

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AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Three months ended March 31, 2024

Notes to Consolidated

Financial Statements

Three Months Ended June 30, 2024

Six Months Ended June 30, 2024

United States

1 unchanged sentence

based operations

United States

based operations

Eliminations (a)

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Interest expense

Gain on foreign currency

Interest and investment income

Other expense

Loss (gain) on foreign currency

Interest and investment loss (income)

Income before income taxes

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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.

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

INTERPARFUMS, INC.

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Other segment disclosures:

Three months ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Net income attributable to Interparfums, Inc.:

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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 72% and 70% of net sales for the three months ended March 31, 2025 and 2024 , 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 68 % of net sales for the six months ended June 30, 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.

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 produce and distribute fragrance and fragrance related products.

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

United States based operations represented 28 % and 32 % of net sales for the six months ended June 30, 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.

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As a percentage of net sales, product sales for the Company’s largest brands represented 77 % and 74 %, respectively, with a split by brand as follows:

Three Months Ended

Six 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 approximately 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 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 March 31, 2025 .

Discussion of Critical Accounting Policies

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Results of Operations

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

Three and Six Months Ended June 30, 2025 as Compared to the Three and Six Months Ended June 30, 2024

Three Months Ended

Six Months Ended

(in millions)

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United States based product sales

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.

*n/a = not applicable

Net sales for the three months ended June 30, 2025 decreased 2 % from the three months ended June 30, 2024 .

Organic sales for the three months ended June 30, 2025, which exclude the impact of foreign exchange and the discontinuation of the Dunhill license, also decreased 2% compared to the prior year period.

The average dollar/euro exchange rate for the current second quarter was 1.13 compared to 1.08 in the second quarter of 2024 resulting in an increase of net sales of 2% in the three months ended June 30, 2025 as compared to the prior year period.

Net sales for the six months ended June 30, 2025 increased 1 % as compared to the six months ended June 30, 2024 .

Organic sales for the six months ended June 30, 2025 increased 2.5% as compared to the prior year period.

For the six months ended June 30, 2025, the impact of exchange rates on net sales was an increase of 0.4% as compared to the prior year period.

For European based operations, sales in the three months ended June 30, 2025 increased 6% on a reported basis and 4% on an organic basis, compared to the corresponding period of the prior year, driven by Lacoste and Coach, which grew by 59% and 42%, respectively.

These increases were driven by continued strong performance in these brand's established lines, plus the successful launches of Coach for Men Eau de Parfum and Coach Women Gold .

Jimmy Choo fragrance sales declined 20% compared to a high base in the corresponding period of the prior year.

However, brand sales increased 5% for the six months ended June 30, 2025 compared to the corresponding period of the prior year due to the introduction of Jimmy Choo Man Extreme in the first quarter and the continued popularity of the I Want Choo fragrance family.

Sales of Montblanc were broadly flat in the second quarter, but are expected to increase through the balance of 2025 with the recent launch of Explorer Extreme.

For the six months ended June 30, 2025, European based operations sales increased 7% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.

For United States based operations, sales in the three months ended June 30, 2025 decreased 20% compared to the corresponding period of the prior year as a result of the discontinuation of the Dunhill license which had an 8% negative impact.

With the phase-out of Dunhill fragrances completed in August of 2024, we expect minimal impact on a quarter-over-quarter comparison going forward.

GUESS and Donna Karan/DKNY fragrance sales in the three months ended June 30, 2025 declined by 8% and 13%, respectively, compared to the corresponding period of the prior year, driven by the timing of product launches and tariff generated supply chain disruptions.

Roberto Cavalli fragrance sales continue to benefit from our integration, growing 23% and 25% in the three and six months ended June 30, 2025, respectively, compared to the corresponding periods in the prior year.

MCM sales rose by 3% in the second quarter compared to the second quarter of 2024 with the continued success from the launch of the MCM Collection .

For the six months ended June 30, 2025, United States based operations sales decreased 12% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.

While the second quarter saw a slight overall decline, we are confident in our future as we look forward to executing our plans for the remainder of 2025 .

A new blockbuster, Roberto Cavalli Serpentine, began limited distribution in the second quarter and will expand throughout the remainder of the year.

We have a large number of brand extensions across many of our brands launching throughout the year, including a new flanker for Lacoste Original 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 .

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Net Sales to Customers by Region

Three Months Ended

Six Months Ended

(In millions)

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Eastern Europe

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 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.

In the six months ended June 30, 2025 , net sales in our largest market, North America, rose 7 % as compared to the prior year period, followed by an increase in Western Europe of 3 %.

Our sales in Asia/Pacific decreased by 12 % driven by a higher base from 2024 in Australia and distribution disruptions in South Korea in the current year while the overall trend remains positive in China and Japan.

Our net sales in Eastern Europe were also robust, up 14 % in the six months ended June 30, 2025 as compared to the prior year period when we faced temporary sourcing constraints.

Central and South America net sales increased 7 %.

Middle East and Africa net sales declined 19 % primarily due to a disproportionate impact from the exit of the Dunhill license due to its significant presence.

Excluding the impact of Dunhill, Middle East and Africa net sales declined 6% due to the impacts of the conflicts in the region and a reduction in the number of doors in many markets that are now more focused on higher-end luxury fragrances.

Gross Profit Margin

Three Months Ended

Six Months Ended

(in millions)

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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.

The Company’s gross profit margin as a percentage of net sales was 66.2 % and 65.0 % for the three and six months ended June 30, 2025 as compared to 64.5 % and 63.5 % for the corresponding period of the prior year.

The increase in the three and six months ended June 30, 2025 as compared to the prior year period was driven by favorable segment and brand mix in the current year.

For European based operations, gross profit margin as a percentage of net sales was 68.3 % and 66.9 % for the three and six months ended June 30, 2025 , respectively, as compared to 68.8 % and 66.3 % for the corresponding period of the prior year.

European based operations were negatively impacted by brand and channel mix during the three months ended June 30, 2025 as compared to the prior year period, while brand and channel mix were favorable overall in the first half of 2025.

INTERPARFUMS, INC.

AND SUBSIDIARIES

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.

For United States based operations, gross profit margin as a percentage of net sales was at 60.7 % and 59.7 % for the three and six months ended June 30, 2025 respectively, as compared to 56.5 % and 57.5 % for the corresponding periods of the prior year.

The increase in both periods was mainly driven by the discontinuation of Dunhill products which were sold at lower margins in 2024 as is customary during sell-off periods.

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.

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.

Selling, general and administrative expenses

Three Months Ended

Six Months Ended

(In millions)

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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.

The Company’s selling, general and administrative expenses as a percentage of net sales was 48.5 % and 45.0 % for the three and six months ended June 30, 2025 as compared to 45.6 % and 43.6 % for the three and six months ended June 30, 2024 .

The increase was largely driven by increased spending on promotional and advertising activities and increased employee related costs in both the second quarter and first half of 2025 as compared to the prior year periods.

For European based operations, selling, general and administrative expenses increased 7% for both the three and six months ended June 30, 2025 a s compared to the corresponding periods of the prior year, and represented 48.2 % and 43.4% of net sales for the three and six months ended June 30, 2025 , as compared to 47.8% and 43.4% for the three and six months ended June 30, 2024 .

The increase in selling, general and administrative expenses as a percentage of net sales in the second quarter resulted from an increase in employee related costs due to a one time adjustment resulting from the ending of the 2022 free-share plan in France.

For United States based operations, selling, general and administrative expenses decreased 3.9% and 1.0% for the three and six months ended June 30, 2025 as compared to the corresponding periods of the prior year, and represented 48.0% and 47.8% of net sales for the three and six months ended June 30, 2025, as compared to 39.8% and 42.5% for the three and six months ended June 30, 2024.

The increase in selling, general and administrative expenses as a percentage of net sales was largely driven by lower sales in 2025 with the discontinuation of Dunhill in 2024.

Promotion and advertising included in selling, general and administrative expenses aggregated $68.8 million and $120.4 million for the three and six months ended June 30, 2025 , respectively, as compared to $ 66.4 million and $ 114.7 million for the corresponding periods of the prior year and represented 20.6 % and 17.9 % of net sales for the three and six months ended June 30, 2025 , respectively, as compared to 19.4 % and 17.2 % 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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AND SUBSIDIARIES

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.

Royalty expense included in selling, general and administrative expenses aggregated $27.7 million and $55.8 million for the three and six months ended June 30, 2025 , respectively, as compared to $ 27.0 million and $ 54.2 million for the corresponding periods of the prior year.

Royalty expense represented 8.3 % of net sales for both the three and six months ended June 30, 2025 as compared to 7.9 % and 8.1 % 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 22.2% for the three months ended March 31, 2025 , respectively, as compared to 21 .0 % for the corresponding period 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 17.7 % and 20.0 % for the three and six months ended June 30, 2025 , respectively, as compared to 18.9 % and 19.9 % for the corresponding period of the prior year.

Other Income and Expense

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.

Overall, other income and expense for the six months ended June 30, 2025 , was a loss of $6.7 million as compared to a loss of $1.5 million in the corresponding prior year period.

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

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.

One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $2.4 million in the first half of 2025 compared to a gain of $0.3 million in the first half of 2024 .

Another driver of this change is the impact of our gains and losses on marketable securities where we had recorded a loss of $3.4 million in the first half of 2025 and a loss of $0.6 million in the first half of 2024 .

Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.1 million during the six months ended June 30, 2025 as compared to a net interest expense of $0.8 million in the prior year period.

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.

Long-term debt including current maturities aggregated $210.0 million and $ 157.3 million as of June 30, 2025 and December 31, 2024 , respectively.

Interest expense was $3.1 million in the six months ended June 30, 2025 compared to $3.5 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.

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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 months ended March 31, 2025 and 2024 .

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

Interest income was $2.6 million in the six months ended June 30, 2025 compared to $1.7 million in the prior year period.

As of June 30, 2025 , short-term investments also include approximately $3.5 million of marketable equity securities of other companies in the luxury goods sector.

In the second quarter of 2025 , the Company had unrealized losses on these securities $1.1 million compared to unrealized gains of $1.5 million for the corresponding period of the prior year.

Our consolidated effective tax rate was 24.3% and 23.9 % for the six months ended June 30, 2025 and 2024 , respectively.

The effective tax rate for European based operations was 25.4% and 25.0 % for the six months ended June 30, 2025 and 2024 , respectively, while the effective tax rate for United States based operations was 18.8% for the six months ended June 30, 2025 , as compared to 19.9 % 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

Six Months Ended

(In thousands)

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Net income attributable to Interparfums, Inc.

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.

was $ 32.0 million and $74.5 million for the three and six months ended June 30, 2025 , respectively, as compared to $ 36.8 million and $ 77.9 million for the corresponding period of the prior year.

Net income attributable to European based operations was $ 32.7 million and $ 80.9 million for the three and six months ended June 30, 2025 , as compared to $ 33.2 million and $ 78.1 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $ 9.6 million and $ 18.2 million the three and six months ended June 30, 2025 , as compared to $ 15.2 million and $ 24.8 million 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 three months ended March 31, 2025 and 2024 .

Net profit margins attributable to Interparfums, Inc.

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

for the six months ended June 30, 2025 and 2024 aggregated 11.1% and 11.7 %, respectively.

Liquidity and Capital Resources

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

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

As of June 30, 2025 , we had $205.4 million in cash, cash equivalents and short-term investments, the majority of which are held in euro by our European based operations and is readily convertible into U.S.

We have not experienced 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, 2025 , working capital aggregated $654.0 million.

Approximately 74% of the Company’s total assets are held by European based operations, and approximately $298.3 million of trademarks, licenses and other intangible assets are also held by European based operations.

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Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2024 , without consideration for potential renewal periods and do not reflect the fact that our distributors share our advertising obligations.

INTERPARFUMS, INC.

AND SUBSIDIARIES

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.

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

In July 2025, our 72% owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036.

Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.

The first launch is expected in 2027.

In June 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.

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

INTERPARFUMS, INC.

AND SUBSIDIARIES

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.

Furthermore, 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 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 .

Cash provided by operating activities aggregated $4.5 million for the six months ended June 30, 2025 compared to cash used in operating activities of $ 26.5 million for the six months ended June 30, 2024 .

For the six months ended June 30, 2025 , working capital items used $108.9 million in cash from operating activities, as compared to $ 140.2 million in the 2024 period.

F rom a cash flow perspective, accounts receivables are down 1% from year end 2024 .

The balance is reasonable based on second quarter 2025 sales levels and seasonality of the business.

Day’s sales outstanding remained consistent at 74 days, up slightly from 72 days in the corresponding period of the prior year driven by changes in our channel mix, as 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 June 30, 2025 increased 5% from year end 2024 as is customary as we prepare for second half sales and holiday season orders.

As compared to June 30, 2024, our inventory levels have decreased as we continue to work to manage down our inventory.

We are doing this by increasing conversion of raw materials into finished goods resulting in finished goods making up 65.0% of our inventory levels at June 30, 2025 as compared to 59.7% at June 30, 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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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 2025 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 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.

Cash flows provided by investing activities in 2025 are comprised of the net effect of purchases and sales of short-term investments.

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

At June 30, 2025 , approximately $2.3 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.

Additionally, during the second quarter the Company purchased approximately $15.3 million of additional property in Paris attached to its French headquarters.

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 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 .

Our short-term financing requirements are expected to be met by available cash on hand at June 30, 2025 , and by short-term credit lines provided by domestic and foreign banks.

The principal credit facilities for 2025 consist of $70 million unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.4 million (€8 million) in credit lines provided by a consortium of international financial institutions.

There was $9.4 million of short-term borrowings outstanding pursuant to these facilities as of June 30, 2025 and $18.5 million outstanding as of June 30, 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 $0.80 per share is payable on June 30, 2025, to shareholders of record on June 13, 2025.

The next quarterly cash dividend of $ 0.80 per share is payable on September 30, 2025, to shareholders of record on September 15, 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 three months ended March 31, 2025

Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the six months ended June 30, 2025 ;

however, we anticipate potential inflationary impacts in the second half of 2025 due to potential increased costs from tariffs.

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