Did Interparfums beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Interparfums next quarter?

What is Interparfums's gross profit margin?

What is the revenue and EPS growth rate for Interparfums year over year?

What guidance did Interparfums's management provide for the next earnings period?

What factors drove the changes in Interparfums's revenue and profit?

What is Interparfums's latest dividend and current dividend yield?

What does Interparfums do and what are its main business segments?

- **Revenue Resilience**: European sales +5% YoY, driven by a stronger euro, while U.S. sales (-5%) reflect strategic portfolio shifts. Key brands like Jimmy Choo, Coach, and Montblanc, etc.

**【CEO Summary Section】**
- **Revenue Growth and Market Dynamics**: European-based operations sales rose 5% year-over-year, driven by a stronger euro, while U.S.-based sales declined 5% (excluding Dunhill). Key brands like Jimmy Choo Fragrance saw a 16% surge, and Coach fragrances grew 6% due to new launches like Coach Gold.
- **Innovation and New Launches**: Introduced Serpentine (Roberto Cavalli's new fragrance) and the direct-to-consumer e-commerce channel Solférino. Targeting 100 retail doors by September 2026 and 500 by 2030. Digital sales on Amazon and TikTok Shop are accelerating, with fragrance holding 50% market share in beauty categories.
- **Operational Efficiency**: Transitioned 100% of packing, shipping, and order fulfillment to third-party providers. Implementing the first sale rule for U.S. imports to mitigate tariffs, expected completion by Q2 2026. Inventory management improved, with finished goods mix optimized.
- **Pricing Strategy**: Implemented selective price increases (2% average) on prestige and luxury brands, with minimal consumer resistance. Third-quarter unit pricing rose 5.9%, offsetting input cost pressures.

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 2025 net sales $430 million (+1% YoY), operating income $109 million (+2%), and diluted EPS $2.05 (+6%). Gross margin expanded 80 bps year-to-date to 64.4%, despite Q3 tariffs reducing margin by 40 bps.
- **Segment Breakdown**: European-based operations gross margin 66.6% (year-to-date), U.S.-based 59% (excluding Dunhill). SG&A expenses optimized, with A&P spend at 15.3% of Q3 sales. Inventory reduced 6% YoY, focusing on finished goods.
- **Cash Flow and Share Repurchase**: Operating cash flow $68 million (18% of net income), with $7.5 million in share repurchases year-to-date. Balance sheet remains strong with $188 million cash and $688 million working capital.
- **Guidance**: Full-year 2025 sales $1.47 billion (+1%), EPS $5.12. 2026 outlook for moderate growth, with 2027 acceleration via new licenses (Off-White, Longchamp, Goutal).

**【Q&A Key Highlights】**
- **Holiday Sales Confidence**: Strong October gift set sales, Amazon momentum, and minimal inventory overhang. Q3 unit sales growth 1%, pricing (+7% in September) offsetting macro challenges.
- **Tariff Mitigation Progress**: First sale rule implementation for U.S. imports to reduce tariff impact, expected completion Q2 2026. Gross margin erosion (~50 bps) in Q4 due to ongoing tariff adjustments.
- **New Brand Pipeline**: 2027 launches of Off-White, Goutal, and Longchamp fragrances, with Longchamp targeting $100 million in annual sales. Portfolio optimization focuses on high-margin, scalable brands like Coach, Jimmy Choo, and Montblanc.

Interparfums, Inc. (IPAR) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: 3% organic growth in H1, outpacing market (+5% Q2), with North America and Europe leading.
- **Strategic Moves**: Launching artisanal Solférino collection and securing Longchamp license; shifting to third-party logistics.
- **Financial Strength**: Gross margin +170bps to 66.2%, reaffirmed $5.35 EPS guidance despite Q2 volatility.
- **Key Risks**: Retail destocking in Q2, 15% U.S. tariffs on European goods, and FX volatility.
- **Growth Drivers**: E-commerce (TikTok, Amazon) and holiday gift sets expected to fuel Q4 recovery.

**【CEO Summary Section】**
- **Revenue Growth**: Organic net sales rose 3% year-over-year in the first half, driven by strong performance in North America (+7%) and Western Europe (+3%). U.S.-based operations saw a 14% decline in the second quarter due to the discontinuation of the Dunhill license.
- **Regional Highlights**: Central/South America (+7%) and Eastern Europe (+14%) outperformed, while Asia Pacific (-12%) and Middle East/Africa (-19%) faced challenges.
- **New Launches**: Upcoming releases include Jimmy Choo I Want Choo with Love, Montblanc Explorer Extreme, and the artisanal Solférino collection. The company also secured the Longchamp fragrance license for 2027.
- **Operational Updates**: Transitioning to third-party logistics in Q3 to reduce costs; e-commerce platforms (TikTok, Amazon) are key growth drivers. Tariffs on U.S. imports increased to 15%, prompting selective price hikes (+2% average) to offset costs.

**【CFO Financial Commentary】**
- **Q2 Results**: Net sales $334M (-1% YoY), Non-GAAP EPS $1.08 (vs. $1.05 prior). Gross margin expanded 170bps to 66.2% due to brand/channel mix and Dunhill discontinuation.
- **Expenses**: SG&A 48.5% of sales (vs. 45.6% prior), A&P 20.6% of sales (+5% YoY). Operating margin 17.7% (-120bps YoY) due to higher A&P and FX losses.
- **Balance Sheet**: $205M cash, $654M working capital. Free cash flow improved $31M YoY.
- **Guidance**: Full-year net sales $1.51B, EPS $5.35, reaffirmed despite Q2 volatility.

**【Q&A Highlights】**
- **Promotional Levels**: No significant change; using gift-with-purchase and sampling to drive demand.
- **Destocking Concerns**: Retailers cautious due to macro uncertainty, but end-demand remains strong (market +5% Q2). Expect orders to surge in Q4.
- **Tariff Impact**: 15% U.S. import tariffs on European goods; pricing adjustments (+2% avg) to offset costs. No China manufacturing, but diversifying suppliers.
- **Brand Expansion**: Open to adding more luxury/contemporary brands like Off-White, but no immediate plans beyond Longchamp.
- **Debt Increase**: Q1 loan for real estate purchases; no material impact on financial flexibility.

Inter Parfums (IPAR)-6 Aug 25-2025 Q2 Earnings call transcript

- **Revenue Beat Expectations**: 5% YoY growth, 7% LFL, driven by Coach, Jimmy Choo, and new brands. Upcoming launches include Certain Time and Solférino.
- **Margin Expansion**: Gross margin 63.7% (+120bps), operating margin 22% (+120bps), fueled by direct-to-retail sales and cost efficiencies.
- **Tariff Resilience**: 300bps potential impact mitigated by 2/3 through localization and pricing; 2025 impact negligible due to inventory buffer.
- **Luxury Growth**: Acquiring Annick Goutal and Off-White, with Coach license renewal, positions for premiumization. Fragrance market outperforms broader beauty sector.

**【CEO Summary Section】**
- **Revenue Growth**: Net sales increased 5% year-over-year, with a 7% like-for-like growth, driven by strong performances from Coach, Jimmy Choo, and Donna Karan/DKNY. New brands Lacoste and Casale also contributed positively.
- **New Product Launches**: Introduced Coach for Men Eau de Parfum featuring Jason Tatum and Ferragamo Fiamma, with upcoming launches like Certain Time for Roberto Cavalli and Solférino in July 2025.
- **Supply Chain Resilience**: Transitioning to third-party logistics by mid-2025 to reduce costs and enhance agility. Actively mitigating tariffs through localized production, alternative sourcing, and selective price increases.
- **Brand Portfolio Expansion**: Acquired Annick Goutal (2026) and will assume full ownership of Off-White in 2026, complementing the renewed 5-year Coach license.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q1 2025 net sales $339M (+5% YoY), operating income $75M (+10% YoY), EPS $5.35 guided for 2025.
- **Gross Margin Expansion**: 63.7% (up 120bps YoY) due to favorable brand/channel mix. Operating margin 22% (up 120bps YoY).
- **Cost Management**: A&amp;P expenses grew 7% but were offset by scale benefits. Tariffs estimated 300bps impact, mitigated by 2/3 through localization and pricing.
- **Balance Sheet Strength**: $172M cash, $600M working capital, and $0.80 quarterly dividend reaffirmed.

**【Q&A Key Insights】**
- **US Market Resilience**: Despite 2% market decline, US sales grew 3% LFL, driven by Coach and Donna Karan. No significant sell-in/sell-out mismatch noted.
- **Global Fragrance Trends**: Europe faces slower growth (France, Germany), but Asia shows promise in Australia and Southeast Asia. Fragrance market outperforms makeup/skincare.
- **Tariff Mitigation**: 63% finished goods inventory provides buffer. 2025 impact minimal; 2026+ risks managed via localized production and selective price hikes (mid-single digits).

Inter Parfums (IPAR)-6 May 25-2025 Q1 Earnings call transcript

- **2024 Record Results**: $1.452B sales, $5.18 EPS vs. $5.15 guidance, driven by 7% Jimmy Choo and 13% GUESS growth.
- **New Brand Success**: Lacoste ($84M) and Cavalli ($31M) exceeded expectations, with Off-White fragrance set to launch in 2026.
- **2025 Growth Drivers**: Ferragamo Fiamma Q2 launch, 4% sales target, and 19.2% operating margin sustainability.
- **Risks**: 2% FX headwind in Q1, industry-wide margin contraction, and regulatory compliance costs (~80% formula reformulation).

**CEO Summary Section**
- **Record 2024 Performance**: Total sales reached $1.452 billion, with adjusted EPS of $5.18, exceeding guidance of $5.15. New brands Lacoste and Roberto Cavalli contributed $84 million and $31 million in first-year sales, respectively.
- **Key Brand Growth**: Jimmy Choo (+7%), GUESS (+13%), and Donna Karan/DKNY (+$100M+) drove portfolio expansion. Ferragamo's new blockbuster Fiamma, launching Q2 2025, aims to reignite growth in U.S., Italy, and Mexico.
- **Strategic Initiatives**: Expansion of direct-to-retail channel to 49% of sales, launch of Solférino niche fragrance brand, and Off-White fragrance commercialization in 2026.
- **Market Momentum**: Global fragrance market growth moderating to mid-single digits, with North America (+6%), Western Europe (+21%), and Travel Retail (+20%) leading 2024 gains.

**CFO Financial Commentary**
- **2024 Financial Highlights**: Net sales grew 10% to $1.452 billion, operating income rose 11% to $279 million (19.2% margin). GAAP net income was $420 million, with a 24.2% effective tax rate.
- **Expense Management**: A&amp;P spending increased 7% to $281 million, but controlled as a percentage of sales (19.3%). Royalty expenses remained stable at 8% of net sales.
- **2025 Guidance**: Target $1.51 billion in sales (+4%) and $5.35 EPS, despite 2% FX headwind in Q1. Focus on high ROI A&amp;P investments and supply chain efficiency through 3PL transitions.
- **Balance Sheet Strength**: $235 million cash, $188 million operating cash flow (92% of net income), and $157 million long-term debt.

**Q&A Key Takeaways**
- **Inventory Health**: Destocking gap narrowed to minimal in Q4 2024, with channel alignment improving. 2025 expects moderate growth without significant promotional activity.
- **Competitive Dynamics**: Industry-wide margin contraction amid increased A&amp;P spending by peers. Interparfums maintains operating margin stability through disciplined ROI-driven investments.
- **Brand Outlook**: Ferragamo Fiamma, Cavalli Serpentine, and Lacoste extensions positioned for 2025 growth. Smaller brands like Lanvin and Montblanc face geographic challenges but benefit from innovation.
- **Risk Management**: Monitoring U.S. trade policy impacts, tariff mitigation strategies, and regulatory compliance (e.g., 80% formula reformulation for EU restrictions).

IPAR

IPAR fundamentals

Earnings Call

You can ask Aime