Interparfums 2025 Q2 Earnings Misses Targets as Net Income Drops 13%

Interparfums reported its fiscal 2025 Q2 earnings on August 5, 2025, with results largely in line with guidance but falling short of expectations in several key areas. The company reaffirmed its full-year guidance despite near-term challenges including trade destocking and macroeconomic uncertainties.

Revenue
Total revenue for Interparfums declined by 2.4% to $333.94 million in 2025 Q2, compared to $342.23 million in the same period in 2024. On a regional basis, North America and Western Europe saw growth of 7% and 3%, respectively, while Asia-Pacific experienced a 12% decline. Central and South America posted a 7% increase, driven by Lacoste fragrances, and Eastern Europe rose 14% year-to-date. In contrast, the Middle East and Africa fell by 19%, largely due to the exit of the Dunhill license. The U.S. accounted for 35% of the company’s second-quarter net sales.

Earnings/Net Income
Interparfums’s earnings per share (EPS) decreased by 13.0% to $1.00 in 2025 Q2, down from $1.15 in 2024 Q2. Net income also fell by 11.6% to $41.20 million, compared to $46.60 million in the prior-year period. While these declines are concerning, the company has maintained profitability for over 20 years during the corresponding quarter, showcasing strong operational resilience.

Price Action
The stock price of Interparfums has shown a downward trend, with a 1.79% drop on the latest trading day, a 3.60% decline during the most recent full trading week, and a more pronounced 14.47% fall month-to-date.

Post-Earnings Price Action Review
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CEO Commentary
Jean Madar, Chairman & CEO, emphasized confidence in the company’s brand portfolio and distribution network, noting strong U.S. demand and plans to navigate headwinds through proactive actions. He mentioned that challenges, including tariffs and trade destocking, are expected to persist into H2 2025 but will resolve by 2026. Madar also highlighted new brand additions like Longchamp and the upcoming Solférino launch as key growth drivers.

Guidance
The company reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and earnings per diluted share of $5.35. This guidance accounts for anticipated foreign exchange tailwinds, new fragrance launches, and pricing strategies to counteract near-term headwinds.

Additional News
The Company announced its regular quarterly cash dividend of $0.80 per share, payable on September 30, 2025, to shareholders of record as of September 15. Additionally, Interparfums will host a conference call on August 6, 2025, at 11:00 am ET to discuss the results and business outlook. This call will be accessible via a live webcast on the company’s investor relations website, with a replay available for 90 days.

The company also signed an exclusive global license agreement with Longchamp, marking the third brand added to its portfolio since December 2024, following Off-White and Goutal. This strategic move strengthens its portfolio and aligns with its long-term growth goals.