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Item 1. Financial Statements

2026-08-04 compared with 2026-05-05 · 223 added, 460 removed, 262 unchanged (72% of the section changed)

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

adjustments) necessary to present fairly our financial position, results of operations and cash flows for the interim periods

We have condensed such financial statements in accordance with the rules and regulations of the Securities and Exchange

Commission (“SEC”).

Therefore, such financial statements do not include all disclosures required by accounting principles

generally accepted in the United States of America.

In preparing these consolidated financial statements, the Company has evaluated

events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued

by filing with the SEC.

These financial statements should be read in conjunction with our audited financial statements for the

year ended December 31, 2025 , included in our annual report filed on Form 10-K.

results of operations for the three months ended March 31, 2026 , are not necessarily indicative of the results to be expected

for the entire fiscal year.

Financial Statements

In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly our financial position, results of operations and cash flows for the interim periods presented.

We have condensed such financial statements in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).

Therefore, such financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America.

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued by filing with the SEC.

These financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2025 , included in our annual report filed on Form 10-K.

The results of operations for the six months ended June 30, 2026 , are not necessarily indicative of the results to be expected for the entire fiscal year.

INTERPARFUMS, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

March 31, 2026

June 30, 2026

December 31, 2025

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Short-term investments

Accounts receivable, net

Accounts receivable, net allowances of $ 8,412 and $ 7,224 , respectively

Receivables, other

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Deferred tax liabilities

Total liabilities

Interparfums, Inc.

2 unchanged sentences

authorized 1,000,000 shares;

none issued and outstanding

Common stock, $ .001 par;

authorized 100,000,000 shares;

outstanding 32,025,781 and 32,067,285 shares at March 31, 2026 and December 31, 2025 , respectively

issued 41,104,625 and 41,100,125 and outstanding 32,025,781 and 32,067,285 shares at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

1 unchanged sentence

Accumulated other comprehensive loss

Treasury stock, at cost, 9,078,844 and 9,032,840 shares at March 31, 2026 and December 31, 2025 , respectively

Treasury stock, at cost, 9,078,844 and 9,032,840 shares at June 30, 2026 and December 31, 2025, respectively

Total Interparfums, Inc.

2 unchanged sentences

Total liabilities and equity

See notes to consolidated financial statements.

See notes to condensed consolidated financial statements.

INTERPARFUMS, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share data)

Three Months Ended

Three Months Ended June 30,

Six Months Ended June 30,

Cost of sales

4 unchanged sentences

Loss on foreign currency

Interest and investment income

Nonoperating Income (Expense)

Interest and investment (income) loss

Income before income taxes

Net income attributable to the noncontrolling interest

Net income attributable to the noncontrolling interests

Net income attributable to Interparfums, Inc.

common shareholders

Earnings per share:

3 unchanged sentences

Dividends declared per share

See notes to consolidated financial statements.

INTER PARFUMS, INC.

See notes to condensed consolidated financial statements.

INTERPARFUMS, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

Three Months Ended

Three Months Ended June 30,

Six Months Ended June 30,

Comprehensive income:

Other comprehensive income:

Net derivative instrument gain, net of tax

Net derivative instrument gain (loss), net of tax

Transfer from OCI into earnings

4 unchanged sentences

Other comprehensive income:

Net derivative instrument gain, net of tax

Net derivative instrument gain (loss), net of tax

Pension benefits, net of tax

2 unchanged sentences

Comprehensive income attributable to Interparfums, Inc.

See notes to consolidated financial statements.

See notes to condensed consolidated financial statements.

INTERPARFUMS, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands)

Three Months Ended

Three Months Ended June 30,

Six Months Ended June 30,

Common stock, beginning and end of period

2 unchanged sentences

Share-based compensation

Purchase/Transfer of subsidiary shares

Additional paid-in capital, end of period

Retained earnings, beginning of period

Reclassification Adjustment - See Note 1

Share-based compensation

1 unchanged sentence

Accumulated other comprehensive loss, beginning of period

Foreign currency translation adjustment

Foreign currency translation adjustment, net of tax

Transfer from other comprehensive income into earnings

Pension benefits, net of tax

Net derivative instrument gain, net of tax

Net derivative instrument loss, net of tax

Accumulated other comprehensive loss, end of period

3 unchanged sentences

Noncontrolling interest, beginning of period

Foreign currency translation adjustment

Foreign currency translation adjustment, net of tax

Pension benefits, net of tax

1 unchanged sentence

Share-based compensation

Transfer of subsidiary shares purchased

Purchase of subsidiary shares from noncontrolling interests

Reclassification Adjustment - See Note 1

Noncontrolling interest, end of period

See notes to consolidated financial statements.

See notes to condensed consolidated financial statements.

INTERPARFUMS, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended

Six Months Ended June 30,

Cash flows from operating activities:

Adjustments to reconcile net income to net cash used in operating activities:

Adjustments to reconcile net income to net cash used in (provided by) operating activities:

Depreciation and amortization

Provision for doubtful accounts

Noncash stock compensation

Provision for credit losses

Share-based compensation

Share of income of equity investment

6 unchanged sentences

Income taxes, net

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Cash flows from investing activities:

3 unchanged sentences

Payment for intangible assets acquired

Net cash (used in) provided by investing activities

Net cash provided by investing activities

Cash flows from financing activities:

Repayment of loans payable, bank

Proceeds from loans payable, bank

Proceeds from issuance of long-term debt

Repayment of long-term debt

2 unchanged sentences

Dividends paid to noncontrolling interest

Other financing activities

Purchase of subsidiary shares from noncontrolling interests

2 unchanged sentences

Effect of exchange rate changes on cash

Net decrease in cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents - beginning of period

2 unchanged sentences

Cash paid for:

See notes to consolidated financial statements.

See notes to condensed consolidated financial statements.

INTERPARFUMS, INC.

AND SUBSIDIARIES

to Consolidated Financial Statements

Accounting Policies:

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

was filed with the Securities and Exchange Commission for the year ended December 31, 2025 .

Notes to Condensed Consolidated Financial Statements

Significant Accounting Policies:

The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.

Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the three and six month periods ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026.

The condensed consolidated balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

For further information, refer to the consolidated financial statements and footnotes thereto included in our annual report on Form 10-K for the year ended December 31, 2025.

Accounts Receivable

Accounts receivables were $ 301.8 million, $ 320.6 million, $ 274.7 million as of June 30, 2026, December 31, 2025, and December 31, 2024, respectively.

Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and are stated at the lower of cost and net realizable value, with cost being determined using an average cost method which approximates first-in, first-out (“FIFO”).

Cost components include raw materials, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight.

Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company’s customers.

Our consolidated effective tax rate was 24.2 % and 24.3 % for the six months ended June 30, 2026 and 2025, respectively.

The Company's effective income tax rate is primarily affected by the geographic mix of earnings among jurisdictions with different statutory tax rates, the benefit associated with the Foreign-Derived Intangible Income ("FDII") deduction, excess tax benefits related to stock-based compensation, state income taxes, and other permanent differences recognized during the period.

These items collectively result in the Company's effective tax rate differing from the U.S.

federal statutory rate.

The company does not have a jurisdictional tax forecast but uses a forecasted tax rate by segment to validate the quarterly effective tax rate.

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

We also did not have any material discreet tax items this quarter nor significant changes in uncertain tax positions, valuation allowances, tax examinations, or enacted law changes.

The Company was notified in June 2026 by the Internal Revenue Service that the Company will undergo an audit for the 2024 tax year.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

Correction of Immaterial Misstatements in Financial Statements

Subsequent to the issuance of the December 31, 2025 consolidated financial statements, management identified a misclassification in the presentation of equity within the Consolidated Balance Sheets and Consolidated Statement of Changes in Shareholders’ Equity.

Specifically, since inception, the equity component of Interparfums SA share-based compensation was improperly recorded in retained earnings rather than being presented in noncontrolling interest.

The Company evaluated the misclassification under ASC 250, Accounting Changes and Error Corrections, considering both quantitative and qualitative factors, including SEC Staff Accounting Bulletin No.

Management concluded the misclassification was not material to the previously issued financial statements and recorded the $ 12.9 million reclassification correction in the current period.

This adjustment is reflected in the Consolidated Balance Sheets and Statement of Changes in Shareholders’ Equity.

Refer to the “Reclassification adjustment” line item in the Statement of Changes in Shareholders’ Equity.

The revision affected only equity presentation in the Consolidated Balance Sheets and Statement of Changes in Shareholders’ Equity and had no impact on net income, operating income, cash flows, total assets, total liabilities, or total equity for any periods presented.

Reclassifications

Certain prior year amounts in the accompanying consolidated statement of cash flows and notes to consolidated financial statements have been reclassified to conform with current period presentation.

Recent Agreements:

9 unchanged sentences

In December 2025, the license agreement was renewed for an additional 15 years, extending the license through December 31, 2048 .

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

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 .

2 unchanged sentences

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

Annick Goutal

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

6 unchanged sentences

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

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Rochas Fashion

As a result of operational challenges faced by the Rochas Fashion business, we have taken impairment charges on our Rochas fashion trademark, and in the fourth quarter of 2024 , 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 in the first quarter of 2026 and 2025 that would require management to perform an impairment analysis.

Accounting Pronouncements:

Recent Accounting Pronouncements:

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

14 unchanged sentences

however, the Company does not expect adoption to have a material impact on its consolidated financial position, results of operations, or cash flows.

There are no other recent accounting pronouncements issued but not yet

adopted that would have a material effect on our consolidated financial

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements (“ASU 2025-11”).

This update clarifies the applicability, form and content, and interim disclosure requirements in ASC Topic 270 and enhances navigability of the interim reporting guidance.

ASU 2025-11 also establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity.

ASU 2025-11 is effective for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact ASU 2025-11 will have on its interim consolidated financial statements.

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

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

Inventories consist of the following:

(in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

1 unchanged sentence

Finished goods

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Fair Value Measurement:

1 unchanged sentence

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, 2026

Quoted Prices in

Active Markets for

Identical Assets

Significant Other

Fair Value Measurements at June 30, 2026

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

Short-term investments

4 unchanged sentences

Fair Value Measurements at December 31, 2025

Quoted Prices in

Active Markets for

Identical Assets

Significant Other

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

Short-term investments

4 unchanged sentences

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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

Notes to Condensed Consolidated Financial Statements

The carrying amount of cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued expenses approximate fair value due to the short terms to maturity of these instruments.

The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates.

1 unchanged sentence

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.

Financial Instruments:

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

currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency.

Before entering

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.

High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in

the cash flows of the hedged item.

The effectiveness of each hedged item is measured throughout the hedged period and is based

on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract

attributable to the change in spot-forward difference which is reported in current period earnings.

Any hedge ineffectiveness

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

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

If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated

in other comprehensive income are reclassified to current-period earnings.

December 2022, to finance the acquisition of the Lacoste trademark, the Company entered into a € 50 million (approximately

$ 57.5 million ) 4 -year term loan with a variable interest rate.

This variable rate debt was swapped for variable interest rate

debt with a maximum rate of 2 % per annum.

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

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 $ 138.0 million)

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

The Company entered into interest rate swap contracts related

to € 80 million of the loan, effectively exchanging the variable interest rate to a fixed rate of approximately 1.1 %.

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

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

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

Such gains and losses were immaterial for the three months ended March 31, 2026 and 2025 , 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 March 31, 2026 , resulted in a net liability and is included in accrued expenses on the accompanying consolidated balance sheet.

At March 31, 2026 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 38.0 million, all of which have maturities of less than one year .

Derivative Financial Instruments:

The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency.

Before entering 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.

High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item.

The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference, which is reported in current period earnings.

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

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 to earnings.

If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated in other comprehensive income are reclassified to current-period earnings.

In December 2022, to finance the acquisition of the Lacoste trademark, the Company entered into a € 50 million (approximately $ 57.0 million) 4 -year term loan with a variable interest rate.

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

This swap is a hedged derivative instrument and is therefore recorded at fair value and changes in fair value are reflected in the accompanying consolidated statements of comprehensive income.

In connection with the April 2021 acquisition of the office building complex in Paris, € 120 million (approximately $ 136.7 million) of the purchase price was financed through a 10 -year variable rate term loan.

The Company entered into interest rate swap contracts related to € 80 million of the loan, effectively exchanging the variable interest rate to a fixed rate of approximately 1.1 %.

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

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 loss on foreign currency in the accompanying consolidated statements of income.

Such gains and losses were immaterial for the six months ended June 30, 2026 and 2025 , respectively.

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

The fair value of foreign currency forward exchange contracts at June 30, 2026 , resulted in a net liability and is included in accrued expenses on the accompanying consolidated balance sheet.

At June 30, 2026 , the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 52 million, all of which have maturities of less than one year .

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Com pany leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as

operating leases.

Notes to Condensed Consolidated Financial Statements

Commitments and Contingencies:

The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases.

The Company currently has no material financing leases.

The Company determines if an arrangement is a lease

at inception.

Operating lease assets and obligations are recognized at the lease commencement date based on the present value

of lease payments over the lease term.

determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to

extend or terminate, depending on the lease.

Renewal, termination or purchase options affect the lease term used for determining

lease asset value only if the option is reasonably certain to be exercised.

The Company generally uses its incremental borrowing

rate based on information available at the lease commencement date for the location in which the lease is held in determining

the present value of lease payments.

of March 31, 2026 , the weighted average remaining lease term was 3.3 years and the weighted average discount rate used to determine

the operating lease liability was 3.2 %.

Rental expense related to operating leases was $ 1.7 million and $ 1.6 million for the three months ended March 31, 2026 and 2025 , respectively .

Operating lease payments included in operating cash flows totaled $ 1.7

million and $ 1.9 million for the March 31, 2026 and 2025 , respectively, and noncash additions to operating lease assets totaled $ 0.4 millio n and $ 0.03 million for the March 31, 2026 and 2025 , respectively.

Share-Based Payments:

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

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

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

The fair value of shares vested during the March 31, 2026 and 2025 aggregated $ 0.0 million and $ 0.02 million , respectively.

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

Forfeitures are estimated based on historic trends.

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

The following table sets forth information with respect to nonvested options for the March 31, 2026 :

Number of Shares

Weighted Average Grant-Date Fair Value

Nonvested options at January 1, 2026

Nonvested options granted

Nonvested options vested or forfeited

Nonvested options at March 31, 2026

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Share-based payment expense decreased income before income taxes by $ 0.42 million and $ 0.56 million for the three months ended March 31, 2026 and 2025 , respectively, and decreased income attributable to Interparfums, Inc.

by $ 0.29 million and $ 0.36 million for the three months ended March 31, 2026 and 2025 respectively, for the corresponding periods of the prior year .

The following table summarizes stock option information as of March 31, 2026 :

Weighted Average

Exercise Price

Outstanding at January 1, 2026

Options forfeited

Options exercised

Outstanding at March 31, 2026

Options exercisable

Options available for future grants

As of March 31, 2026 , the weighted average remaining contractual life of options outstanding is 3.3 years ( 2.4 years for options exercisable);

the aggregate intrinsic value of options outstanding and options exercisable is $ 0.3 million and $ 0.0 million , respectively;

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

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the March 31, 2026 and 2025 were as follows:

(In thousands)

March 31, 2026

March 31, 2025

Cash proceeds from stock options exercised

Intrinsic value of stock options exercised

There were no options granted during the March 31, 2026 and March 31, 2025 .

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

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

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

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

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

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 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.

The Company determines if an arrangement is a lease at inception.

Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term.

In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease.

Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised.

The Company uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments.

As of June 30, 2026 , the weighted average remaining lease term was 3.4 years and the weighted average discount rate used to determine the operating lease liability was 3.2 %.

Rental expense related to operating leases was $ 1.5 million and $ 3.2 million for the three and six months ended June 30, 2026 , respectively, as compared to $ 1.7 million and $ 3.4 million for the corresponding periods of the prior year.

Rental expense is included in selling, general and administrative expenses in the accompanying consolidated statements of income.

Operating lease payments included in operating cash flows totaled $ 3.2 million and $ 4.2 million for the six months ended June 30, 2026 and 2025 , respectively, and noncash additions to operating lease assets totaled $ 0.5 million and $ 0.9 million for the six months ended June 30, 2026 and 2025 , respectively.

IEEPA Tariffs

On February 20, 2026, the U.S.

Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) by the executive branch are not lawful.

On March 4, 2026, the Court of International Trade orders U.S.

Customs and Border Protection to begin the refund process for all importers who were subject to IEEPA tariffs.

The Company estimates it has paid approximately $ 17.6 million of IEEPA tariffs.

As of June 30, 2026 , the Company has received $ 8.7 million of these refunds, and has received an additional $ 8.0 million in July 2026.

The Company has elected to apply a gain contingency model in accordance with ASC 450-30, Gain Contingencies, to account for these recoveries, whereby a gain is recognized when the gain is realized, which occurs when the cash is received.

The accounting for the IEEPA tariff refund reflects the original treatment of the underlying tariff costs.

For the three and six months ended June 30, 2026 , the Company recognized $ 6.9 million for IEEPA tariffs associated with inventory that has been sold as a reduction in cost of sales in the Company’s Condensed Consolidated Statement of Income.

For IEEPA tariffs associated with inventory on hand, the Company has reduced the carrying amount of inventory, which represented $ 1.8 million as of June 30, 2026 .

Interest associated with IEEPA tariffs is recognized in interest and investment income in the Company’s Condensed Consolidated Statements of Income.

Share Repurchase and Line of Credit

In July 2026, the Board of Directors of our Company has authorized a share repurchase program to purchase outstanding shares in either our Company or its 72 % owned subsidiary, Interparfums SA, which has its shares traded on the Euronext under the symbol “ITP,” or both, and has authorized our Company to enter into a line of credit of up to the amount of $ 250 million to be repaid over a maximum of 6 years to fund the share repurchase program.

The terms of the line of credit are still to be finalized.

We cannot assure you that the entire repurchase program will be completed or that any minimum number of shares in our Company or Interparfums SA will be repurchased.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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 March 31, 2026 the Company acquired 106,046 shares at an aggregate cost of $ 4.5 million .

In December 2025, Interparfums SA, approved a new performance-based free share plan to grant an aggregate of 137,900 shares to all Interparfums SA employees and corporate officers who are employed as of the final vesting date of March 1, 2029, subject to certain corporate performance conditions.

The fair value of the grant was determined based on the quoted stock price of Interparfums SA shares as reported by the Euronext on the date of the grant, adjusted for expected dividends over the vesting period and for performance conditions.

Based on the expected retention rate and probability of achieving performance conditions, the total estimated expense for the plan is approximately $ 2.3 million (€ 2 million), recognized on a straight-line basis over the 3.25 year vesting period.

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

During the 3 months ended March 31, 2026 and as of March 31, 2026, the Company acquired 56,264 shares at an aggregate cost of $ 1.5 million.

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

Net Income Attributable to Interparfums, Inc.

Common Shareholders:

Notes to Condensed Consolidated Financial Statements

Earnings per Share:

Net income attributable to Interparfums, Inc.

4 unchanged sentences

The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows:

Three months ended

(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

Net income attributable to Interparfums, Inc.

7 unchanged sentences

common shareholders:

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.18 million shares of common stock for the three months ended March 31, 2026 and 0.04 million shares of common stock for the three months ended March 31, 2025 .

Not included in the above computations are the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.18 million shares of common stock for the three and six months ended June 30, 2026 and 0.08 million shares of common stock for the three and six months ended June 30, 2025 .

Accrued Expenses

Accrued expenses consist of the following:

June 30 , 2026

December 31 , 2025

Advertising liabilities

Salary (including bonus and related taxes)

Due vendors (not yet invoiced)

Retirement reserves

Refund (return) liability

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Segment and Geographic Areas:

Notes to Condensed Consolidated Financial Statements

Revenue Recognition:

Disaggregation of net sales by the Company’s geographic regions is as follows:

Three Months Ended June 30,

Six Months Ended June 30,

Net sales by region.:

North America

Western Europe

Central and South America

Eastern Europe

Middle East and Africa

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

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

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

Six Months Ended June 30,

Donna Karan/DKNY

For the six months ended June 30, 2026 , Macy's, our top retail customer, accounted for approximately 10 % of net sales.

No one customer represented 10 % or more of net sales for the six months ended June 30, 2025.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

Segment Reporting:

The Company manufactures and distributes one product line, fragrances and fragrance related products.

4 unchanged sentences

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

Three Months Ended March 31, 2026

United States

based operations

Three months ended June 30, 2026

Six months ended June 30, 2026

United States based operations

European based operations

United States based operations

European based operations

Eliminations (a)

8 unchanged sentences

Interest Expense

Loss on foreign currency

Loss (gain) on foreign currency

Interest and investment income

Income before income taxes

Other (income) expense

Income before taxes

INTERPARFUMS, INC.

AND SUBSIDIARIES

Notes to Consolidated

Financial Statements

Three Months Ended March 31, 2025

United States

based operations

AND SUBSIDIARIE

Notes to Condensed Consolidated Financial Statements

Three months ended June 30, 2025

Six months ended June 30, 2025

United States based operations

European based operations

United States based operations

European based operations

Eliminations (a)

8 unchanged sentences

Interest Expense

Loss on foreign currency

Interest and investment loss (income)

Other expense (income)

Income before income taxes

Loss (gain) on foreign currency

Interest and investment income

Other (income) expense

Income before taxes

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

3 unchanged sentences

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Condensed Consolidated Financial Statements

Other segment disclosures:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Net income attributable to Interparfums, Inc.:

11 unchanged sentences

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

June 30, 2026

December 31, 2025

Total assets:

United States

INTERPARFUMS, INC.

AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Information

Statements in this report which are not historical in nature are forward-looking statements.

Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved.

In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words.

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

These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums’ annual report on Form 10-K for the fiscal year ended December 31, 2025 , and the reports Interparfums files from time to time with the Securities and Exchange Commission (“SEC”).

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

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

We manage our business in two segments, European based operations and United States based operations.

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 % of net sales for the three months ended March 31, 2026 and 2025 .

We have built a portfolio of prestige brands, which include Boucheron, Coach, Goutal, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Longchamp, Moncler, Montblanc, Off-White, 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 % of net sales for the three months ended March 31, 2026 and 2025 .

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

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

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

As a percentage of net sales for the three months ended March 31, 2026 and 2025 , product sales for the Company’s largest brands represented 81 % and 76 %, respectively, with a split by brand as follows:

Three Months Ended

Donna Karan/DKNY

INTERPARFUMS, INC.

AND SUBSIDIARIES

For the three months ended March 31, 2026, Macy's, our top retail customer, accounted for approximately 12% of net sales.

No one customer represented 10 % or more of net sales for the three months ended March 31, 2025.

Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season.

In certain markets where we sell directly to retailers, seasonality is more evident.

We primarily sell directly to retailers in France, the United States, and Italy.

We grow our business in two distinct ways.

First, we grow by adding new brands to our portfolio, through new licenses or other arrangements, or outright acquisitions of brands.

Second, we grow through the introduction of new products and by supporting new and established products through advertising, merchandising and sampling, as well as phasing out underperforming products, so we can devote greater resources to those products with greater potential.

The economics of developing, producing, launching and supporting products influence our sales and operating performance each year.

The introduction of new products may have some cannibalizing effect on sales of existing products, which we take into account in our business planning.

Our business is not capital intensive, and it is important to note that we do not own manufacturing facilities.

We act as a general contractor and source our needed components from our suppliers.

These components are received and stored directly at our third party fillers or received at one of our distribution centers.

For those components received at one of our distribution centers, based upon production needs, the components are subsequently sent to one of several third party fillers, which manufacture the finished product for us and then deliver them to one of our distribution centers.

As with any global business, many aspects of our operations are subject to influences outside our control.

We believe we have a strong and well diversified brand portfolio with global reach and potential.

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 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.

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

Recent Important Events

Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 .

Discussion of Critical Accounting Policies

Information regarding our critical accounting policies can be found in our 2025 Annual Report on Form 10-K filed with the SEC.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Results of Operations

Three Months Ended March 31, 2026 as Compared to the Three Months Ended March 31, 2025

Three Months Ended

(in millions)

European based product sales

United States based product sales

*n/a = not applicable

Net sales for the three months ended March 31, 2026 increased 2 % from the three months ended March 31, 2025 .

The average dollar/euro exchange rate for the current first quarter was 1.17 compared to 1.05 in the first quarter of 2025 , resulting in a positive foreign exchange impact on net sales of 4.6% in the three months ended March 31, 2026 as compared to the prior year period.

For European based operations, sales in the three months ended March 31, 2026 increased 2%, compared to the corresponding period of the prior year, which included a 5.5% positive foreign exchange impact.

Coach fragrance sales grew 30%, in the first quarter of 2026, following an 11% increase in the prior year period.

This growth was driven by strong sell-in following the launches of new extensions within the Coach Women and Coach Men franchises, Coach Cherry and Coach Platinum , as well as sustained strong demand across most existing lines.

Montblanc fragrance sales rose 14% in the first quarter of 2026, driven by the launch of Legend Elixir , the continued success of Explorer Extreme , and a lower sales base in last year's first quarter.

We plan to launch a new extension for the Explorer Extreme line in the second half of the year to sustain the brand.

While Jimmy Choo fragrance sales continue to grow in the United States, supported by the ongoing success of the I Want Choo franchise and the first quarter launch of Jimmy Choo Man Parfum , overall brand net sales declined 4% in the first quarter of 2026.

This reflected a moderate downturn in certain European and Asian markets.

Fragrance sales of Lacoste declined 12% in the first quarter of 2026 against a high base in the prior year period in which sales grew 30% behind a very successful innovation program as well as challenging market conditions primarily in Eastern Europe.

We remain confident in the brand's medium and long-term potential, given recent and upcoming extensions in 2026 and planned blockbuster launches in 2027 and 2028.

For United States based operations, sales in the three months ended March 31, 2026 increased 2% compared to the corresponding period of the prior year, which included a 2.5% positive foreign exchange impact.

GUESS fragrance sales rose 11% in the first quarter of 2026 supported by successful launches of new extension within the Iconic and Seductive pillars, Iconic Sublime , the newest men's fragrance that extends the franchise's strong momentum, and Seductive Desire , a bold new dual-gender fragrance duo.

Following a successful first two years in our portfolio, Roberto Cavalli continued to generate robust results,

achieving 32% sales growth during the first quarter of 2026.

Growth was fueled by the latest innovation released during

the quarter, including the Just Cavalli Wild Heart extension dual-gender duo, Wild Pink & Wild Blue , and Verde Assoluto ,

the newest fragrance within the Uomo pillar.

Donna Karan/DKNY net sales declined by a modest 3% in the first quarter of 2026 off a strong sales base in the first quarter of 2025;

however, sales

of Be Delicious Core rebounded by 16% in the first quarter of 2026, compared to the prior year period, reflecting renewed

consumer demand and strengthening momentum for the franchise.

We expect sales to improve as the year progresses,

driven by support for the new DKNY three-scent collection, Be Delicious Latte , and the new fragrance for the Donna Karan

Cashmere Collection , Cashmere & Rose Absolu .

While the 2026 first quarter experienced a slight decline in organic sales, net sales grew overall, and we remain cautiously optimistic about the remainder of 2026.

Looking ahead to 2027, we continue to be optimistic by the enhanced offerings within our current portfolio of brands, the introduction of new fragrances from recently acquired brands and licenses, and the selective pursuit of incremental brand opportunities.

While the pace of growth in the market is starting to normalize closer to historical levels following massive growth seen over the past few years, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.

INTERPARFUMS, INC.

AND SUBSIDIARIES

Net Sales to Customers by Region

Three Months Ended

(In millions)

North America

Western Europe

Central and South America

Eastern Europe

Middle East and Africa

In the three months ended March 31, 2026 , net sales in our largest market, North America, rose 7% as compared to the prior year period behind continued market growth, the launch of several extensions, in particular for Coach, as well as successful marketing and advertising investments, while sales in Western Europe remained flat behind slow consumer demand.

Our sales in Asia/Pacific decreased by 7% driven by distribution changes we implemented in 2025 in South Korea and India, and softer consumer demand in Australia/New Zealand, which were partially compensated by strong growth in China.

Central and South America net sales increased 23 % due to the success of women's and men's Coach franchises and the strength of the Montblanc Legend line.

Our net sales in Eastern Europe decreased 12% in the three months ended March 31, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste.

Middle East and Africa net sales also declined 12% primarily due to recent intensification of the conflicts in those regions.

Gross Profit Margin

Three Months Ended

(in millions)

European based operations

Cost of sales

Gross profit margin

Gross profit margin as a percentage of net sales

United States based operations

Cost of sales

Gross profit margin

Gross profit margin as a percentage of net sales

The Company’s gross profit margin as a percentage of net sales was 65.1 % for the three months ended March 31, 2026 as compared to 63.7 % for the corresponding period of the prior year.

The increase was the result of favorable segment, brand and channel mix as well as lower than expected destruction costs.

These were partially offset by tariffs which represented an expense of $6 million in the three months ended March 31, 2026 as compared to the prior year period.

For European based operations, gross profit margin as a percentage of net sales was 67.4 % for the three months ended March 31, 2026 , respectively, as compared to 65.5 % for the corresponding period of the prior year.

The increase was the result of favorable brand and channel mix as well as lower than expected destruction costs.

These were partially offset by tariffs which represented an expense of $4 million in the three months ended March 31, 2026 as compared to the prior year period.

INTERPARFUMS, INC.

AND SUBSIDIARIES

For United States based operations, gross profit margin as a percentage of net sales remained flat at 58.9 % for the three months ended March 31, 2026 respectively, as compared to 58.7 % for the corresponding period of the prior year.

Favorable brand and channel mix as well as lower than expected destruction costs were offset by tariffs which represented an expense of $2 million in the three months ended March 31, 2026 as compared to the prior year period.

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 goods sold.

Selling, general and administrative expenses

Three Months Ended

(In millions)

European based operations

Selling, general and administrative expenses

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

United States based operations

Selling, general and administrative expenses

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

The Company’s selling, general and administrative expenses as a percentage of net sales were 43.6% for the three months ended March 31, 2026 as compared to 41.6 % for the three months ended March 31, 2025 .

The increase in selling, general and administrative expenses as a percentage of net sales in the quarter resulted from royalty costs growing ahead of sales driven by unfavorable brand mix as well higher logistics costs related to supply chain transitions and channel mix.

For European based operations, selling, general and administrative expenses increased 8.8% for the three months ended March 31, 2026 , respectively a s compared to the corresponding period of the prior year, and represented 41.4 % of net sales for the three months ended March 31, 2026 , as compared to 38.7 % for the three months ended March 31, 2025 .

The increase in expenses was largely driven by increases in employee related costs as we are building up our Korean subsidiary and higher logistics costs related to increased warehouse fees.

Royalty costs also grew ahead of sales driven by unfavorable brand mix.

For United States based operations, selling, general and administrative expenses increased 2.5% for the three months ended March 31, 2026 as compared to the corresponding period of the prior year, in line with sales increases, and represented 47.9% of net sales for the three months ended March 31, 2026 , as compared to 47.6 % for the three months ended March 31, 2025 .

Promotion and advertising included in selling, general and administrative expenses aggregated $51.6 million for the three months ended March 31, 2026 , respectively, as compared to $ 51.5 million for the corresponding period of the prior year and represented 15.0 % of net sales for the three months ended March 31, 2026 , respectively, as compared to 15.2 % for the corresponding period of the prior year.

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

We 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.

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

INTERPARFUMS, INC.

AND SUBSIDIARIES

Royalty expense included in selling, general and administrative expenses aggregated $31.9 million for the three months ended March 31, 2026 , respectively, as compared to $ 28.1 million for the corresponding period of the prior year.

Royalty expense represented 9.3 % of net sales for the three months ended March 31, 2026 as compared to 8.3 % 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 21.5 % for the three months ended March 31, 2026 , respectively, as compared to 22.2 % for the corresponding period of the prior year.

Other Income and Expense

Overall, other income and expense for the three months ended March 31, 2026 , was a gain of $1.1 million as compared to a loss of $ 1.7 million in the corresponding prior year period.

T he main drivers of the change are discussed in more detail below.

These include the positive impact of the change in foreign currency where we recognized a loss of only $0.1 million in the first three months of 2026 compared to a loss of $ 0.8 million in the first three months of 2025 .

Additionally, we had a gain on interest income related to cash and cash equivalents and short-term investments of $1.7 million and a reduction in interest expense on borrowings of $0.1 million.

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 $157.3 million and $ 176.0 million as of March 31, 2026 and December 31, 2025 , respectively.

Interest expense was $1.4 million in the three months ended March 31, 2026 compared to $ 1.5 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.

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

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

Such gains and losses were immaterial in the three months ended March 31, 2026 and 2025 .

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 $1.6 million in the three months ended March 31, 2026 compared to $1.3 million in the prior year period.

Additionally, we recognized gains on marketable equity securities of $0.7 million in the three months ended March 31, 2026 compared a loss of $0.7 million in the three months ended March 31, 2025.

Our consolidated effective tax rate was 24.6% and 24.5 % for the three months ended March 31, 2026 and 2025 , respectively.

The effective tax rate for European based operations remained flat at 25.4% for the three months ended March 31, 2026 as compared to 25.5% for the three months ended 2025 .

The effective tax rate for United States based operations was 19.7% for the three months ended March 31, 2026 , as compared to 18.1 % 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 deduction-eligible income, slightly offset by state and local taxes.

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

INTERPARFUMS, INC.

AND SUBSIDIARIES

Three Months Ended

(In thousands)

Net income attributable to European based operations

Net income attributable to United States based operations

Net income attributable to the noncontrolling interest

Net income attributable to Interparfums, Inc.

was $ 43.4 million for the three months ended March 31, 2026 , respectively, as compared to $ 42.5 million for the corresponding period of the prior year.

Net income attributable to European based operations was $ 49.9 million for the three months ended March 31, 2026 , as compared to $ 48.1 million for the corresponding period of the prior year, while net income attributable to United States based operations was $ 8.4 million for the three months ended March 31, 2026 , as compared to $ 8.7 million the corresponding period of the prior year.

The 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, 2026 and 2025 .

Net profit margins attributable to Interparfums, Inc.

for the three months ended March 31, 2026 and 2025 aggregated 12.6% and 12.5 %, respectively.

Liquidity and Capital Resources

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

As of March 31, 2026 , we had $237.1 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 March 31, 2026 , working capital aggregated $692 million.

Approximately 79% of the Company’s total assets are held by European based operations, and approximately $285 million of trademarks, licenses and other intangible assets are also held by European based operations.

The Company is party to a number of licenses and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2049.

In connection with most of these license agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments.

Financial Statements and Supplementary Data – Note 11 – Commitments in our 2025 annual report on Form 10-K, which is incorporated by reference herein.

Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2025 , without consideration for potential renewal periods and do not reflect the fact that our distributors share our advertising obligations.

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 January 2026, we entered into

long-term global licensing agreements for the creation, development and

distribution of fragrances and fragrance related products under the David

Beckham and Nautica brands, effective April 1, 2028 and January 1, 2030,

respectively.

In July 2025, our 72% owned French subsidiary,

Interparfums SA, signed an exclusive fragrance license agreement with

Longchamp running through December 31, 2036.

rights under these licenses are subject to certain minimum advertising

expenditures and royalty payments as are customary in our industry.

launch under our Longchamp license 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,

which is operating the Goutal brand under an existing license

agreement that expired on December 31, 2025,

when Interparfums SA began commercial use of the fragrance

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

Cash provided by operating activities aggregated $0.1 million for the three months ended March 31, 2026 compared to cash used in operating activity of $7.4 million for the three months ended March 31, 2025 .

For the three months ended March 31, 2026 , working capital items used $67.3 million in cash from operating activities, as compared to $70.0 million in the 2025 period.

F rom a cash flow perspective, accounts receivables are up 6% from year end 2025 .

The balance is reasonable based on first quarter 2026 sales levels and seasonality of the business.

Days' sales outstanding increased to 78 days, up from 74 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 March 31, 2026 increased 7% from year end 2025 .

Despite the increase, we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods, resulting in finished goods making up 64% of our inventory levels at March 31, 2026 as compared to 63 % at March 31, 2025 .

Despite foreign exchange headwinds, our inventories are down significantly year over year with $370 million at March 31, 2026 compared to $396 million at March 31, 2025, translating to a reduction of 17 days inventory on hand.

Cash flows used in investing activities in 2026 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.

In the first quarter of 2026, our strong cash flow position has enabled us to increase our short-term investments by $23 million compared to the year ended December 31, 2025.

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

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

On a full year basis, spend on tools and molds fluctuates depending on our new product development and is typically not material.

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 2026 predominately reflect repayments of debt and payments of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at March 31, 2026 , and by short-term credit lines provided by domestic and foreign banks.

The principal credit facilities for 2026 consist of $45 million in unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.2 million (€ 8 million) in credit lines provided by a consortium of international financial institutions.

There was $4.6 million of short-term borrowings outstanding pursuant to these facilities as of March 31, 2026 and $ 7.6 million outstanding as of March 31, 2025 .

In February 2025, our Board of Directors authorized an annual dividend to $3.20 per share, and in 2026 our Board of Directors maintained the annual dividend at $3.20 per share.

The next quarterly cash dividend of $ 0.8 0 per share is payable on June 30, 2026 to shareholders of record on June 15, 2026.

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, 2026 ;

however, we have already started to see the impacts of tariffs on our cost structure and had adjusted our pricing accordingly in 2025.

We continue to monitor for potential inflationary impacts as our suppliers potentially adjust their pricing as well.

Subsequent Events:

Management has evaluated subsequent events through the date the financial statements were available to be issued and determined that no subsequent events requiring disclosure have occurred except for those discussed in Note 7, including the IEEPA tariff refund received in July 2026 the board approval in July 2026 of the share repurchase program and line of credit.

INTERPARFUMS, INC.

1 unchanged sentence

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