What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-08-05 · 168 added, 145 removed, 592 unchanged (35% of the section changed)

10 unchanged sentences

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

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

results of operations for the nine months ended September 30, 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)

June 30, 2025

September 30, 2025

December 31, 2024

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authorized 100,000,000 shares;

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

outstanding 32,064,728 and 32,110,170 shares at September 30, 2025 and December 31, 2024 , respectively

Additional paid-in capital

1 unchanged sentence

Accumulated other comprehensive loss

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

Treasury stock, at cost, 8,960,587 and 9,981,665 shares at September 30, 2025 and December 31, 2024 , respectively

Total Interparfums, Inc.

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Cost of sales

3 unchanged sentences

Interest expense

Loss (gain) on foreign currency

Interest and investment loss (income)

Loss on foreign currency

Interest and investment (income) loss

Other (income) loss

Nonoperating Income (Expense)

13 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Comprehensive income:

Other comprehensive income:

Net derivative instrument gain (loss), net of tax

Net derivative instrument (loss) gain, net of tax

Transfer from OCI into earnings

4 unchanged sentences

Other comprehensive income:

Net derivative instrument gain (loss), net of tax

Net derivative instrument (loss) gain, net of tax

Pension benefits, net of tax

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Common stock, beginning and end of period

28 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

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Income taxes, net

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Cash flows from investing activities:

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Payment for intangible assets acquired

Net cash provided by investing activities

Net cash (used in) provided by investing activities

Cash flows from financing activities:

9 unchanged sentences

Effect of exchange rate changes on cash

Net increase (decrease) in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents - beginning of period

42 unchanged sentences

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 fair value 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 management reviewed and agreed with an independent expert's conclusion 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 fair value of the trademark was $ 7.2 million.

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

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

Accounting Pronouncements:

25 unchanged sentences

(In thousands)

June 30, 2025

September 30, 2025

December 31, 2024

7 unchanged sentences

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

Fair Value Measurements at June 30, 2025

Fair Value Measurements at September 30, 2025

Quoted Prices in

53 unchanged sentences

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.

Such gains and losses were immaterial for the three and nine months ended September 30, 2025 and 2024 , respectively.

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

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 .

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

At September 30, 2025 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 60 million which all have maturities of less than one year .

INTERPARFUMS, INC.

15 unchanged sentences

the present value of lease payments.

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

of September 30, 2025 , the weighted average remaining lease term was 3.6 years and the weighted average discount rate used to determine

the operating lease liability was 3.1 %.

Rental expense related to operating leases was $ 1.7 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 .

Rental expense related to operating leases was $ 1.8 million and $ 5.1 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 1.6 million and $ 4.9 million for the corresponding periods of the prior year .

Operating lease payments included in operating cash flows totaled $ 5.0

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.

million and $ 4.4 million for the nine months ended September 30, 2025 and 2024 , respectively, and noncash additions to operating lease assets totaled $ 0.2 millio n and $ 1.2 million for the nine months ended September 30, 2025 and 2024 , respectively.

Share-Based Payments:

2 unchanged sentences

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 six months ended June 30, 2025 and 2024 aggregated $ 0.02 million and $ 0.04 million , respectively.

The fair value of shares vested during the nine months ended September 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.

1 unchanged sentence

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 six months ended June 30, 2025 :

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

Number of Shares

Weighted Average Grant-Date Fair Value

Nonvested options – beginning of period

Nonvested options at January 1, 2025

Nonvested options granted

Nonvested options vested or forfeited

Nonvested options – end of period

Nonvested options at September 30, 2025

INTERPARFUMS, INC.

1 unchanged sentence

Notes to Consolidated Financial Statements

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 :

Share-based payment expense decreased income before income taxes by $ 0.37 million and $ 1.31 million for the three and nine months ended September 30, 2025 respectively, as compared to decreases of $ 0.60 million and $ 1.77 million for the three and nine months ended September 30, 2024 respectively, and decreased income attributable to Interparfums, Inc.

by $ 0.26 million and $ 0.87 million for the three and nine months ended September 30, 2025 respectively, as compared to $ 0.4 million and $ 1.17 million for the corresponding periods of the prior year .

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

Weighted Average

3 unchanged sentences

Options exercised

Outstanding at June 30, 2025

Outstanding at September 30, 2025

Options exercisable

Options available for future grants

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

As of September 30, 2025 , the weighted average remaining contractual life of options outstanding is 2.8 years ( 1.0 years for options exercisable);

the aggregate intrinsic value of options outstanding and options exercisable is $ 2.1 million and $ 2.1 million , respectively;

and unrecognized compensation cost related to stock options outstanding aggregated $ 2.7 million.

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:

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

(In thousands)

June 30, 2025

June 30, 2024

September 30, 2025

September 30, 2024

Cash proceeds from stock options exercised

Intrinsic value of stock options exercised

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

There were no options granted during the nine months ended September 30, 2025 and September 30, 2024 .

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

10 unchanged sentences

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 .

As of September 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

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 0.08 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 .

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.09 million shares of common stock for the three and nine months ended September 30, 2025 and 0.05 million shares of common stock for the three and nine months ended September 30, 2024 .

INTERPARFUMS, INC.

8 unchanged sentences

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

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

United States

21 unchanged sentences

Financial Statements

Three Months Ended June 30, 2024

Six Months Ended June 30, 2024

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

United States

14 unchanged sentences

Interest expense

Loss (gain) on foreign currency

Loss on foreign currency

Interest and investment loss (income)

Other expense (income)

Income before income taxes

6 unchanged sentences

Other segment disclosures:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Net income attributable to Interparfums, Inc.:

2 unchanged sentences

United States

Interest and investment income:

Interest and investment (income) loss:

United States

6 unchanged sentences

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

September 30,

Total Assets:

13 unchanged sentences

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 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.

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 70 % and 67 % of net sales for the nine months ended September 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, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.

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

United States based operations represented 28 % and 32 % of net sales for the six months ended June 30, 2025 and 2024 , respectively.

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

1 unchanged sentence

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 77 % and 74 %, respectively, with a split by brand as follows:

Six Months Ended

As a percentage of net sales for the nine months ended September 30, 2025 and 2024, product sales for the Company’s largest brands represented 78 % and 75 %, respectively, with a split by brand as follows:

Nine Months Ended

September 30,

Donna Karan/DKNY

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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 June 30, 2025 .

Discussion of Critical Accounting Policies

3 unchanged sentences

Results of Operations

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

Three and Nine Months Ended September 30, 2025 as Compared to the Three and Nine Months Ended September 30, 2024

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in millions)

2 unchanged sentences

*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.

Net sales for the three months ended September 30, 2025 increased 1 % from the three months ended September 30, 2024 .

The average dollar/euro exchange rate for the current third quarter was 1.17 compared to 1.10 in the third quarter of 2024 , resulting in a positive foreign exchange impact on net sales of 2.2% in the three months ended September 30, 2025 as compared to the prior year period.

Net sales for the nine months ended September 30, 2025 also increased 1 % as compared to the nine months ended September 30, 2024 .

The average dollar/euro exchange rate for the nine months ended September 30, 2025 was 1.12 compared to 1.09 for the nine months ended September 30 2024, resulting in a positive foreign exchange impact on nets sales of 1.1% as compared to the prior year period.

The discontinuation of the Dunhill license decreased net sales for the nine months ended September 30, 2025 1% compared to the prior year period and a moderate impact in the current quarter compared to the prior year period.

Overall organic growth on a year to date basis is 1.2% compared to the prior year period as consumers are being more selective and retailers are taking a cautious approach to inventory.

For European based operations, sales in the three months ended September 30, 2025 increased 5%, compared to the corresponding period of the prior year, driven by Jimmy Choo, Lacoste and Coach, which grew by 16%, 8% and 6%, respectively.

These increases were driven by continued strong performance in these brands' established lines.

Sales of Montblanc were down 2% in the third quarter, despite the recent release of the Montblanc Explorer Extreme , resulting in a 6% decline for the nine months ended September 30, 2025 , as compared to the prior year period.

We have further enhanced the brand with the launch of Montblanc Signature Elixir and believe it will gain traction through the balance of the year and into 2026.

For United States based operations, sales in the three months ended September 30, 2025 decreased 6% compared to the corresponding period of the prior year as a result of the discontinuation of the Dunhill license.

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 .

GUESS fragrance sales declined moderately by 3% in the three months ended September 30, 2025 , compared to the corresponding period of the prior year, due to a high base in the prior period third quarter and the phasing of innovation.

The brand continues to perform well, and we believe the brand is poised for sales growth in the final quarter of the year.

Donna Karan /DKNY fragrance sales declined 14% in the three months ended September 30, 2025 , compared to the corresponding period of the prior year, due to robust growth levels achieved last year.

Based on planned shipments through year end and the brand's popularity during the holiday season, particularly in the Americas, we believe the brand will grow in the final quarter of the year.

Roberto Cavalli fragrance sales continue to benefit from increased focus, investment and innovation, growing 44% and 33% in the three and nine months ended September 30, 2025 , respectively, compared to the corresponding periods in the prior year.

The brand continues to benefit from strong innovation, including the blockbuster launch of Roberto Cavalli Serpentine and a new duo, Just Cavalli Give Me Magic .

MCM sales rose by 6% in the third quarter of 2025 compared to the third quarter of 2024 with the continued success from the launch of the MCM Collection .

For the nine months ended September 30, 2025 , United States based operations sales decreased 10% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.

While the 2025 third quarter saw only a slight overall increase, we are encouraged by our agility and pricing actions that are underway and expect to see the full impact of our efforts throughout the remainder of 2025 and through 2026.

We continue to focus on our long-term strategy, innovative product development, and high service levels for our global retail and distribution partners.

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.

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Net Sales to Customers by Region

Six Months Ended

Nine Months Ended

(In millions)

September 30,

North America

1 unchanged sentence

Central and South America

Middle East and Africa

Eastern Europe

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.

Middle East and Africa

In the nine months ended September 30, 2025 , net sales in our largest market, North America, rose 4% as compared to the prior year period, followed by an increase in Western Europe of 3%.

Our sales in Asia/Pacific decreased by 9% driven by distribution disruptions in South Korea and India in the current year.

Our net sales in Eastern Europe were also robust, up 6% in the nine months ended September 30, 2025 as compared to the prior year period when we faced temporary sourcing constraints.

Central and South America net sales increased 12%.

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.

Middle East and Africa net sales declined 16% primarily related 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 7% 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.

1 unchanged sentence

Three Months Ended

Six Months Ended

Nine Months Ended

(in millions)

September 30,

European based operations

6 unchanged sentences

Gross profit margin as a percentage of net sales

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.

The Company’s gross profit margin as a percentage of net sales was 63.5 % and 64.4 % for the three and nine months ended September 30, 2025 as compared to 63.9 % and 63.6 % for the corresponding periods of the prior year.

The Company continued to benefit from favorable segment, brand, and channel mix, in the nine months ended September 30, 2025 as compared to the prior year period.

However, during the three months ended September 30, 2025 as compared to the prior year period, these favorable tailwinds as well as additional pricing actions that were taken at the back end of the quarter were not sufficient to offset the impacts of higher tariffs on our US imports, which represented $6 million.

For European based operations, gross profit margin as a percentage of net sales was 66.0 % and 66.6 % for the three and nine months ended September 30, 2025 , respectively, as compared to 66.2 % and 66.3 % for the corresponding period of the prior year.

European based operations were negatively impacted by tariffs during the three months ended September 30, 2025 as compared to the prior year period, offset by pricing increases in the United States and brand and channel mix.

During the nine months ended September 30, 2025, favorable channel mix resulted in the increase in gross profit as percentage of sales 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 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.

For United States based operations, gross profit margin as a percentage of net sales was at 58.1 % and 59.0 % for the three and nine months ended September 30, 2025 respectively, as compared to 59.2 % and 58.2 % for the corresponding periods of the prior year.

United States based operations saw a moderate decline due to the negative impact of tariffs as well as brand and channel mix in the three months ended September 30, 2025.

The increase in the nine months ended September 30, 2025 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.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

(In millions)

September 30,

European based operations

4 unchanged sentences

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 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 Company’s selling, general and administrative expenses as a percentage of net sales were 38.2% and 42.4 % for the three and nine months ended September 30, 2025 as compared to 38.9 % and 41.8 % for the three and nine months ended September 30, 2024 .

The decrease in the quarter was driven by the phasing of promotional and advertising activities.

The increase in the first three quarters of the year was largely driven by increased overall spending on promotional and advertising activities and increased employee related costs, as well as negative foreign exchange impacts.

For European based operations, selling, general and administrative expenses increased 1.5% and 4.9% for the three and nine months ended September 30, 2025 , respectively a s compared to the corresponding periods of the prior year, and represented 37.2 % and 41.1% of net sales for the three and nine months ended September 30, 2025 , as compared to 38.3 % and 41.5 % for the three and nine months ended September 30, 2024 .

A significant portion of our expense in European based operations are denominated in euros, resulting in costs as reported in USD.

The decrease in selling, general and administrative expenses as a percentage of net sales in the third quarter and first nine months of the year was driven by the expiration of the 2022 free-share plan and distribution of shares in France in the second quarter resulting in the decrease in stock compensation amortization.

For United States based operations, selling, general and administrative expenses decreased 4.4% and 2.3% for the three and nine months ended September 30, 2025 as compared to the corresponding periods of the prior year, and represented 39.7% and 44.4% of net sales for the three and nine months ended September 30, 2025 , as compared to 39.0 % and 41.1 % for the three and nine months ended September 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 included in selling, general and administrative expenses aggregated $65.5 million and $185.9 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 66.8 million and $ 181.5 million for the corresponding periods of the prior year and represented 15.3 % and 16.9 % of net sales for the three and nine months ended September 30, 2025 , respectively, as compared to 15.7 % and 16.6 % 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.

We are also investing in line with anticipated sell out by our retailers, which we believe are higher than our reported sales.

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

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 $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.

Royalty expense included in selling, general and administrative expenses aggregated $34.7 million and $90.5 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 34.0 million and $ 88.2 million for the corresponding periods of the prior year.

Royalty expense represented 8.1 % and 8.2% of net sales for both the three and nine months ended September 30, 2025 as compared to 8.0 % 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 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.

As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 25.3 % and 22.0 % for the three and nine months ended September 30, 2025 , respectively, as compared to 25.0 % and 21.9 % for the corresponding period of the prior year.

Other Income and Expense

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 $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.

Overall, other income and expense for the nine months ended September 30, 2025 , was a loss of $7.7 million as compared to a loss of $7.1 million in the corresponding prior year period.

One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $4.6 million in the first nine months of 2025 compared to $3.1 million in the first nine months of 2024 .

Another driver of this change is the impact of our gains and losses on marketable securities where we recorded a loss of $2.5 million in the first nine months of 2025 and a loss of $0.8 million in the first nine months of 2024 .

Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.8 million during the nine months ended September 30, 2025 as compared to a net interest expense of $2.9 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 $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.

Long-term debt including current maturities aggregated $196.9 million and $ 157.3 million as of September 30, 2025 and December 31, 2024 , respectively.

Interest expense was $5.1 million in the nine months ended September 30, 2025 compared to $5.3 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 and six months ended June 30, 2025 and 2024 .

Such gains and losses were immaterial in the three and nine months ended September 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 $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.

Interest income was $4.4 million in the nine months ended September 30, 2025 compared to $2.7 million in the prior year period.

Our consolidated effective tax rate was 23.5% and 23.7 % for the nine months ended September 30, 2025 and 2024 , respectively.

The effective tax rate for European based operations was 24.4% and 25.0 % for the nine months ended September 30, 2025 and 2024 , respectively.

The decrease in taxes resulted from a $3 million favorable outcome to our mutual agreement procedure between the French and United States tax authorities in which we were able to reclaim the tax assessment paid in France in 2023.

The gain was offset by a $1 million one-time tax assessment included in the tax expense as a result of a tax audit conducted for the 2022 and 2023 tax years.

The effective tax rate for United States based operations was 20.0% for the nine months ended September 30, 2025 , as compared to 19.8 % for the corresponding period of the prior year.

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

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Three Months Ended

Six Months Ended

Nine Months Ended

(In thousands)

September 30,

Net income attributable to European based operations

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Net income attributable to Interparfums, Inc.

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.

was $ 65.8 million and $ 140.3 million for the three and nine months ended September 30, 2025 , respectively, as compared to $ 62.3 million and $ 140.1 million for the corresponding period of the prior year.

Net income attributable to European based operations was $ 63.7 million and $ 144.6 million for the three and nine months ended September 30, 2025 , as compared to $ 54.4 million and $ 132.6 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $ 20.8 million and $ 39.0 million the three and nine months ended September 30, 2025 , as compared to $ 24.3 million and $ 49.0 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 six months ended June 30, 2025 and 2024 .

Net profit margins attributable to Interparfums, Inc.

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

for the nine months ended September 30, 2025 and 2024 aggregated 12.7% and 12.8 %, respectively.

Liquidity and Capital Resources

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

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.

As of September 30, 2025 , we had $187.9 million in cash, cash equivalents and short-term investments, the majority of which are held in euros 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.

As of September 30, 2025 , working capital aggregated $688.0 million.

Approximately 77% of the Company’s total assets are held by European based operations, and approximately $294.4 million of trademarks, licenses and other intangible assets are also held by European based operations.

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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.

In June 2025, our 72 % owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which is operating 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 June 2025, we renewed the Coach license agreement for an additional five -year term, extending the license through June 30, 2031.

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

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

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

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

This license took effect, and products began shipping in January 2024.

Cash provided by operating activities aggregated $68.4 million for the nine months ended September 30, 2025 compared to $ 49.7 million for the nine months ended September 30, 2024 .

For the nine months ended September 30, 2025 , working capital items used $133.9 million in cash from operating activities, as compared to $ 147.0 million in the 2024 period.

F rom a cash flow perspective, accounts receivables are up 23% from year end 2024 .

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

Days' sales outstanding increased to 89 days, up from 83 days in the corresponding period of the prior year, driven by changes in our channel mix.

Despite the increase, 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, 2025 decreased 5% from year end 2024 as we continue to drive inventory efficiencies.

We are doing this by increasing conversion of raw materials into finished goods, resulting in finished goods making up 68% of our inventory levels at September 30, 2025 as compared to 63 % at September 30, 2024 .

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.

At September 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 year.

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.

Additionally, during the second and third quarters the Company purchased approximately $18.2 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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Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers.

Cash flows used in financing activities in 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 June 30, 2025 , and by short-term credit lines provided by domestic and foreign banks.

Cash flows used in financing activities in 2025 reflect issuances and repayments of debt to institutional lenders and payment of dividends to stockholders.

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

The principal credit facilities for 2025 consist of $70.0 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 .

There was $9.4 million of short-term borrowings outstanding pursuant to these facilities as of September 30, 2025 and $9.0 million outstanding as of September 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 September 30, 2025, to shareholders of record on September 15, 2025.

The next quarterly cash dividend of $ 0.80 per share is payable on December 31, 2025, to shareholders of record on December 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 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.

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, 2025 ;

however, we have already started to see the impacts of tariffs on our cost structure and have adjusted our pricing accordingly, as such, we anticipate potential inflationary impacts in the last quarter of 2025 and beyond as our suppliers potentially adjust their pricing as well.

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