IPAR 8-K
Interparfums Inc (IPAR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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(I.R.S. Employer |
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Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Conditions
Certain portions of our press release dated February 25, 2025, a copy of which is annexed hereto as Exhibit no. 99.1, are incorporated by reference herein, and are filed pursuant to this Item 2.02. They are as follows:
- The 1st, 2nd (consisting of a table), 3rd through 6th full paragraphs relating to operational results for the fourth quarter of 2024 or the full year ended December 31, 2024
- Portions of the 7th, 8th, and 10th paragraphs relating to operational results for the fourth quarter of 2024 or the full year ended December 31, 2024
- The 11th -14th paragraphs relating to results of operations
- The 15th paragraph relating to balance sheet information
- The 20th through 23rd paragraphs relating to the already communicated conference call scheduled for February 26, 2025
- The tables of unaudited consolidated statements of income and consolidated balance sheets
Item 7.01 Regulation FD Disclosure
Certain portions of our press release dated February 25, 2025, a copy of which is annexed hereto as Exhibit no. 99.1, are incorporated by reference herein, and are filed pursuant to this Item 7.01. They are as follows:
- Portion of the 7th paragraph relating to strong programs and momentum of GUESS in 2025
- Portion of the 8th paragraph relating to Lacoste and Roberto Cavalli's future growth with the Company in the coming years
- The 9th paragraph relating to the Company’s plans for new product launches and brand extensions for both the European and United States based operations, as well as the 2025 launch of the Company’s first proprietary niche brand, Solférino
- Portion of the 10th paragraph relating to the solid level of reorders for the first half of 2025
- Paragraphs 16 through 17 relating to 2025 guidance
- The 26th paragraph relating to forward-looking information
- The balance of such press release not otherwise incorporated by reference in Item 2.02 or 8.01
Item 8.01 Other Matters
- The 18th and 19th paragraphs relating to the increase of our cash dividend are incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused and authorized this report to be signed on its behalf by the undersigned.
Dated: February 25, 2025
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Interparfums, Inc. | |
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By: |
/s/ Michel Atwood |
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Michel Atwood, |
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Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
INTERPARFUMS, INC. REPORTS RECORD 2024 FOURTH QUARTER AND FULL YEAR RESULTS
Achieves Diluted EPS of $5.12;
Diluted EPS Before Impairment of $5.18 Exceeds Expectations;
Reaffirms 2025 Guidance and Announces 7% Increase in Cash Dividend
New York, New York, February 25, 2025, Interparfums, Inc. (NASDAQ GS: IPAR) today reported record results for the fourth quarter and full year ended December 31, 2024.
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Fourth Quarter & Full Year Highlights: ($ in millions, except per share amounts) |
Three Months Ended December 31, |
Year Ended December 31, |
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2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
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Net Sales |
$362 |
$329 |
10% |
$1,452 |
$1,318 |
10% |
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Gross Margin |
64.5% |
64.7% |
(20 bps) |
63.9% |
63.7% |
+20 bps |
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Operating Income before impairment loss |
$40 |
$19 |
112% |
$279 |
$251 |
11% |
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Operating Margin before impairment loss |
11.1% |
5.7% |
+530 bps |
19.2% |
19.1% |
+10 bps |
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Impairment loss |
$4 |
- |
NA |
$4 |
- |
NA |
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Operating Income |
$36 |
$19 |
91% |
$275 |
$251 |
9% |
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Operating Margin |
10.0% |
5.7% |
+420 bps |
18.9% |
19.1% |
(20 bps) |
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Net Income attributable to Interparfums, Inc. |
$24 |
$10 |
133% |
$164 |
$153 |
8% |
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Diluted EPS |
$0.75 |
$0.32 |
132% |
$5.12 |
$4.75 |
8% |
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Diluted EPS before impairment loss |
$0.82 |
$0.32 |
156% |
$5.18 |
$4.75 |
9% |
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The average dollar/euro exchange rate for the 2024 fourth quarter was 1.07 compared to 1.08 in the 2023 fourth quarter leading to a negative 0.2% foreign exchange impact. For the full year, the average dollar/euro exchange rate was 1.08, in line with 2023. NA – not applicable |
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Operational Commentary
Jean Madar, Chairman & Chief Executive Officer of Interparfums noted, “2024 was our best year ever. Among the highlights were: record sales and profits, successful product launches and brand extensions, plus a better-than-expected first year managing Lacoste and Roberto Cavalli (“Cavalli”) brand fragrances.
“Our sales growth of 10% for both the fourth quarter and the full year was broad-based across our portfolio, reflecting strong demand for our key brands worldwide.
“Our current top six brands, representing approximately 70% of our net sales, increased 5% and 4% during the fourth quarter and full year, respectively. Notably, all of our key markets strengthened with our largest markets, North America, Western Europe and Asia/Pacific, achieving gains of 6%, 21% and 3%, respectively, compared to 2023 for the full year.
“The Middle East and Africa, Eastern Europe, and Central and South America also achieved top line growth of 5%, 14% and 17%, respectively, compared to 2023 for the full year. Furthermore, travel retail continued to strengthen, driven by the increase of travel frequency, distribution expansion, and enhanced consumer experience with our brands.”
Mr. Madar continued, “Jimmy Choo, the largest brand in our portfolio, increased sales by 7% for the year, largely driven by the ongoing success of the I Want Choo franchise. GUESS also had a stellar year, growing 13% as a result of the continued robust performance of its legacy scents, plus the initial success of our new pillar, GUESS Iconic (women). The brand entered 2025 with very strong programs and momentum from the fashion house.
“Lacoste and Cavalli performed very well in their first year under our expertise, and combined, exceeded $115 million in sales behind healthy demand. We expect further growth in the coming years as these two brands continue to leverage our knowledge and build their global presence.”
“2025 will be a pivotal year for Interparfums. We have an aggressive line-up of new pillars and extensions making their debut for both our European and United States based operations. In addition, we are putting the finishing touches on our first proprietary niche brand, Solférino, and plan to launch the collection this summer through an ultra-selective distribution, including our own boutique in Paris later in the year.”
Mr. Madar closed by saying, “Our business is benefitting from the broad shift into prestige and luxury fragrances, which resulted in healthy sell-out across our prestige portfolio at year end, setting the stage for a solid level of reorders in the first half of 2025.”
Financial Commentary
Michel Atwood, Chief Financial Officer of Interparfums pointed out, “In 2024, excluding the previously communicated supplemental non-recurring, non-cash impairment loss of $4 million for Rochas Fashion, we delivered earnings per diluted share (“EPS”) of $5.18, beating our guidance of $5.15. Our reported EPS was $5.12, on a diluted basis, reaching an all-time high in the Company’s history.
“Consolidated gross margin for the year was 63.9% and expanded 20 basis points from 63.7% driven by favorable segment mix and the impact of certain one-time expenses related to inventory in 2023.
“SG&A as a percentage of net sales was 44.7% in 2024, which is in line with the previous year. The percentage change was nominal as increased amortization cost from the addition of the Lacoste license, which represented $6 million for the year, was partially offset due to advertising and promotional (“A&P”) activities by our European based operations growing slower than our consolidated sales in 2024. We invested $281 million on A&P strategies, a 7% increase compared to 2023, which amounted to 19.3% of net sales.
“These factors led to $279 million in operating income before impairment loss, an 11% increase compared to 2023, and an operating profit margin before impairment loss of 19.2%, up slightly from 19.1% in 2023.
“We closed the year in a strong financial position with $235 million in cash, cash equivalents and short-term investments, and working capital of $582 million. Despite sales growth, inventory was flat compared to last year as we began to realize the benefit of our inventory optimization programs. We also significantly improved our cash conversion cycle, delivering operating cash flow equivalent to 92% of net income, up from 56% in 2023. Long-term debt approximated $157 million.”
Reaffirms 2025 Guidance
Mr. Atwood concluded, “The fragrance market remains robust, albeit at a more moderated pace compared to recent years, influenced in part by retail destocking. Despite the current economic uncertainty and unfavorable foreign exchange impacts, we remain confident that our 2025 guidance, which calls for net sales of $1.51 billion and EPS of $5.35, a 4% increase for both, is achievable.”
Guidance assumes that the average dollar/euro exchange rate remains at current levels.
Announcement of Increased Cash Dividend
In February 2025, Interparfums’ Board of Directors approved an increase in the annual cash dividend rate to $3.20 per share, up 7% from $3.00 per share. This dividend increase reflects the Board’s continued confidence in the Company’s financial strength and ability to achieve long-term, sustainable sales and earnings growth.
The next quarterly cash dividend of $0.80 per share is payable on March 28, 2025, to shareholders of record on March 14, 2025.
Conference Call
Management will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Wednesday, February 26, 2025.
Interested parties may participate in the live call by dialing:
U.S. / Toll-free: (877) 423-9820
International: (201) 493-6749
Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin.
A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.
About Interparfums, Inc.
Operating in the global fragrance business since 1982, Interparfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance related products under license agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy.
The portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Interparfums, Inc. is also the registered owner of several trademarks including Lanvin and Rochas.
Forward-Looking Statements
Statements in this release 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' most recent annual report on Form 10-K, and the reports Interparfums files from time to time with the Securities and Exchange Commission. Interparfums does not intend to and undertakes no duty to update the information contained in this press release.
Contact Information:
| Interparfums, Inc. | or | The Equity Group Inc. |
| Michel Atwood | Karin Daly | |
| Chief Financial Officer | Investor Relations Counsel | |
| (212) 983-2640 | (212) 836-9623 / [email protected] | |
| www.interparfumsinc.com | www.theequitygroup.com |
See Accompanying Tables
INTERPARFUMS, INC. AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
December 31, 2024, and 2023
(In thousands except share and per share data)
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Assets |
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2024 |
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2023 |
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Current assets: |
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Cash and cash equivalents |
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$ |
125,433 |
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$ |
88,462 |
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Short-term investments |
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109,311 |
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94,304 |
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Accounts receivable, net |
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274,705 |
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247,240 |
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Inventories |
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371,920 |
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371,859 |
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Receivables, other |
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6,122 |
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7,012 |
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Other current assets |
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27,035 |
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29,458 |
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Income taxes receivable |
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306 |
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691 |
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Total current assets |
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914,832 |
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839,026 |
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Property, equipment and leasehold improvements, net |
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153,773 |
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169,222 |
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Right-of-use assets, net |
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24,603 |
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28,613 |
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Trademarks, licenses and other intangible assets, net |
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282,484 |
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296,356 |
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Deferred tax assets |
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17,034 |
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14,545 |
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Other assets |
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18,535 |
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21,567 |
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Total assets |
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$ |
1,411,261 |
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$ |
1,369,329 |
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Liabilities and Equity |
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Current liabilities: |
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Loans payable - banks |
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$ |
8,311 |
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$ |
4,420 |
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Current portion of long-term debt |
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41,607 |
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29,587 |
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Current portion of lease liabilities |
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6,087 |
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5,951 |
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Accounts payable - trade |
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91,049 |
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97,409 |
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Accrued expenses |
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172,758 |
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178,880 |
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Income taxes payable |
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12,615 |
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8,498 |
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Total current liabilities |
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332,427 |
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324,745 |
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Long–term debt, less current portion |
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115,734 |
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127,897 |
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Lease liabilities, less current portion |
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20,455 |
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24,517 |
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Equity: |
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Interparfums, Inc. shareholders’ equity: |
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Preferred stock, $0.001 par value. Authorized 1,000,000 shares: none issued |
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— |
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— |
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Common stock, $0.001 par value. Authorized 100,000,000 shares: outstanding, 32,110,170 and 32,004,660 shares on December 31, 2024, and 2023, respectively |
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32 |
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32 |
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Additional paid-in capital |
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106,702 |
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98,565 |
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Retained earnings |
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763,240 |
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693,848 |
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Accumulated other comprehensive loss |
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(72,239 |
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(40,188 |
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Treasury stock, at cost, 9,981,665 and 9,981,665 common shares on December 31, 2024, and 2023, respectively |
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(52,864 |
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(52,864 |
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Total Interparfums, Inc. shareholders’ equity |
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744,871 |
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699,393 |
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Noncontrolling interest |
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197,774 |
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192,777 |
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Total equity |
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942,645 |
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892,170 |
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Total liabilities and equity |
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$ |
1,411,261 |
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$ |
1,369,329 |
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INTERPARFUMS, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(In thousands except per share data)
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Three Months Ended |
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Twelve Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net sales |
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$ 361,504 |
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$ 328,739 |
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$ 1,452,325 |
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$ 1,317,675 |
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Cost of sales |
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128,465 |
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116,029 |
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524,984 |
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478,597 |
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Gross margin |
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233,039 |
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212,710 |
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927,341 |
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839,078 |
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Selling, general and administrative expenses |
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193,034 |
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193,830 |
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648,540 |
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587,696 |
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Impairment loss |
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4,005 |
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-- |
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4,005 |
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-- |
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Income from operations |
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36,000 |
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18,880 |
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274,796 |
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251,382 |
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Other expenses (income): |
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Interest expense |
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2,099 |
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4,223 |
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7,825 |
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11,253 |
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Loss (gain) on foreign currency |
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(2,000) |
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2,238 |
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1,085 |
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1,582 |
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Interest and investment income |
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(528) |
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(2,308) |
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(2,218) |
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(10,729) |
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Other income |
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(252) |
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(192) |
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(287) |
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(317) |
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(681) |
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3,961 |
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6,405 |
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1,789 |
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Income before income taxes |
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36,681 |
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14,919 |
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268,391 |
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249,593 |
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Income taxes |
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9,984 |
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6,689 |
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64,958 |
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61,817 |
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Net income |
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26,297 |
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8,230 |
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203,433 |
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187,776 |
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Less: Net income attributable to the noncontrolling interest |
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2,469 |
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(2,190) |
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39,075 |
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35,122 |
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Net income attributable to Interparfums, Inc. |
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$ 24,228 |
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$ 10,420 |
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$ 164,358 |
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$ 152,654 |
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Net income attributable to Interparfums, Inc. common shareholders: |
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Basic |
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$ 0.76 |
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$ 0.33 |
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$ 5.13 |
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$ 4.77 |
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Diluted |
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$ 0.75 |
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$ 0.32 |
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$ 5.12 |
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$ 4.75 |
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Weighted average number of shares outstanding: |
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Basic |
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32,056 |
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31,977 |
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32,037 |
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31,994 |
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Diluted |
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32,135 |
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32,112 |
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32,124 |
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32,140 |
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Dividends declared per share |
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$ 0.750 |
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$ 0.625 |
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$ 3.00 |
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$ 2.50 |
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