8-K

UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

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FORM

8-K

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CURRENT

REPORT

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Pursuant

to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

March 2, 2020

InterParfums, Inc.**

(Exact name of Registrant as specified in its charter)

Delaware	0-16469	13-3275609
(State<br> or other jurisdiction of<br><br> incorporation or organization)	Commission<br> File Number	(I.R.S.<br> Employer<br><br> Identification No.)

551Fifth Avenue, New York, New York 10176(Address of Principal Executive Offices)

212.

983.2640 (Registrant’s Telephone number, including area code)

(Former name or former address, if changed since last report)

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):

☐	Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting<br> Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 280.14a-12)
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☐	Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 280.14d-2(b))
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☐	Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 280.13e-4(c))
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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 (§280.12b-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. ☐

Securities registered pursuant to Section 12(b) of the Act:

Titleof each class	Trading Symbol(s)	Name of each exchange on which registered
Common<br> Stock, $.001 par value per share	IPAR	The<br> Nasdaq Stock Market

Item2.02 Results of Operations and Financial Condition

Certain portions of our press release dated March 2, 2020, 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 1^st^ through 8^th^ paragraphs relating to results of operations for 2019 , with the 8^th^ paragraph also including balance sheet information

● The 12^th^ paragraph relating to the conference call to be held on March 2, 2020

● The tables of unaudited consolidated statements of income and consolidated balance sheets

Item7.01 Regulation FD Disclosure

Certain portions of our press release dated March 2, 2020, 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 and Regulation FD. They are as follows:

● The 9th paragraph relating to plans for 2020 product launches

● The 10^th^ paragraph relating to 2020 guidance

● The 14^th^ paragraph relating to forward looking statements

● The balance of such press release not otherwise incorporated by reference in Items 2.02 or 8.01

Item8.01 Other Matters

The 11^th^ paragraph of our press release dated March 2, 2020 relating to our cash dividend is incorporated by reference herein.

Item9.01 Financial Statements and Exhibits.

99.1	Our press release dated March 2, 2020

1

SIGNATURES

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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: March 2, 2020

Inter Parfums, Inc.
By:	/s/<br> Russell Greenberg
	Russell<br> Greenberg,
	Executive<br> Vice President
	and<br> Chief Financial Officer

2

Exhibit 99.1

INTER PARFUMS, INC. REPORTS2019 FOURTH QUARTER AND YEAR END RESULTS

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2019 Net Sales and Diluted EPS Increaseby 5.6% and 11.1%, Respectively

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New York, New York, March 2, 2020**:**Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the fourth quarter and year ended December 31, 2019. Of note, the average dollar/euro exchange rate for the 2019 fourth quarter was 1.11 compared to 1.14 in the fourth quarter of 2018. For the full years ended December 31, 2019 and 2018, the average dollar/euro exchange rates were 1.12 and 1.18, respectively.

FourthQuarter 2019 Compared to Fourth Quarter 2018:

●	Net<br> sales were $177.8 million, up 0.3% from $177.2 million; at comparable foreign currency<br> exchange rates, net sales increased 1.5%;
●	Net<br> sales by European based operations decreased 4.2% to $129.1 million from $134.8 million;
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●	Net<br> sales by U.S. based operations were $48.7 million, up 14.7% compared to $42.4 million;
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●	Gross<br> margin was 64.5% compared to 66.1%;
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●	S,G&A<br> expenses as a percentage of net sales were 57.6% compared to 60.1%;
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●	Operating<br> income rose 16.5% to $12.3 million as compared to $10.6 million;
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●	Operating<br> margin was 6.9% compared to 6.0%;
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●	Net<br> income attributable to Inter Parfums, Inc. increased 1.8% to $8.2 million compared to<br> $8.0 million; and,
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●	Net<br> income attributable to Inter Parfums, Inc. per diluted share was $0.26 for both periods.
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Thus for the year as a whole, net sales increased 5.6% to $713.5 million from $675.6 million in 2018. At comparable foreign currency exchange rates, net sales increased 7.8%. Net income attributable to Inter Parfums, Inc. increased 12.0% to $60.2 million from 2018’s $53.8 million; and net income attributable to Inter Parfums, Inc. per diluted share rose 11.1% to $1.90 from $1.71 per diluted share in 2018.

Jean Madar, Chairman & CEO of Inter Parfums stated, “In nearly every region in which we operate, we achieved top line growth in 2019, with sales in North America, our largest market, up 11.4%. Our second largest market, Western Europe, achieved sales growth of 2.6%, while in Eastern Europe, net sales rose 4.7%. The biggest percentage gainer was the Middle East where sales surged 22.4% over the previous year. Sales in Asia, our third largest market, were down nominally in actual dollars, but ahead in constant dollars, which we consider quite respectable in light of trade tariffs on goods coming in and out of China from the United States. Our smallest market, Central and South America, underperformed in 2019, not surprisingly in light of the region’s political, economic and social turmoil.”

He continued, “Regarding our largest brands, Montblanc remains our largest brand, with annual sales up nearly 23%. As we previously reported, the strength of the dollar produced slightly lower sales in actual dollars by Jimmy Choo and Coach, but in constant dollars, sales by these two brands were in fact ahead of 2018. GUESS, whose first full year of fragrance sales under our leadership was 2019, has quickly become the fourth largest brand in our portfolio.”

Inter Parfums, Inc. News Release	Page 2
March 2, 2020

Russell Greenberg, Executive Vice President and CFO stated, “Our consolidated gross margin was 62.5% and 63.3% in 2019 and 2018, respectively. Gross margin for European operations was 65.7% compared to 66.3% in 2018. As we reported throughout last year, the benefit of a strong dollar on the gross margin was offset by the higher than typical cost of sales for the Montblanc Explorer product line, which launched in the first quarter of 2019. For U.S. operations, gross margin rose to 52.5% from 51.4% in 2018 with the 110 basis point improvement primarily due to the continued growth of higher margin prestige products under licenses.”

He continued, “Selling, general and administrative expenses rose 2.5% compared to 2018, and as a percentage of net sales, were 47.8% and 49.3% for 2019 and 2018, respectively. Once again, promotion and advertising, included selling, general and administrative expenses peaked in the fourth quarter, which brought the total for the full year to 20.3% of net sales, down slightly from 20.7% in 2018. While we budgeted 21% of 2019 net sales for promotion and advertising expenditure, minor fluctuations in certain launch schedules altered our planned spending.”

Mr. Greenberg also noted, “In 2019, there was a $1.1 million loss on foreign currency while in 2018, the loss was $0.3 million and our effective income tax rate was 27.7% in 2019 and 27.3% in 2018. Cash provided by operating activities aggregated $76.5 million in 2019, and we closed the year with working capital of $389 million, including approximately $253 million in cash, cash equivalents and short-term investments, a working capital ratio of over 3 to 1 and only $10.7 million of long-term debt.”

2020 Plans

For our European operations, Mr. Madar continued, “During the first quarter, we continued the geographic rollouts of products we debuted at the end of last year, including Jimmy Choo Urban Hero and Byzance by Rochas. Our 2020 launch program has begun, most notably with Coach Dreams, an entirely new women’s fragrance family for the brand and L’Homme Rochas. We will have a new women’s scent for Montblanc coming to market later this spring. In addition to initiating distribution of several Kate Spade New York legacy scents in April, come the summer, we will introduce our first new fragrance for the brand. For Jimmy Choo, we have an entirely new women’s scent unveiling in the second half of the year. For U.S. operations, we are gearing for a new blockbuster scent for women under the GUESS banner unveiling this spring in the U.S., followed in the fall by an international rollout. A new fragrance duo for Hollister, Canyon Escape, is also scheduled for a spring launch. We are hopeful that Sky by Anna Sui will bolster brand sales when it debuts in the fall. Our first fragrance collection under the Graff label debuts in Harrod’s for a six-month exclusive starting in the spring, followed by select international luxury distribution.”

2020 Guidance

Mr. Greenberg concluded, “The fundamentals of our business remain strong. However, like most companies doing business around the globe, ours is being impacted by the coronavirus. There are many unknowns as to the duration and severity of the situation which we are closely monitoring. As a result of the trends we have seen recently, such as the significant decline in air travel and consumer traffic in key shopping and tourist areas, we delayed certain launches to later in the year, and therefore, our 2020 guidance needs to be revised. The business challenges change daily, as the track of the virus is unknown, making it very difficult to precisely estimate the impact. If the impact is limited to the first few months of this year, we expect 2020 net sales and net income attributable to Inter Parfums, Inc. to be in line with 2019 results. We are assessing developments constantly and will update these measures as needed and will address the issue on tomorrow’s conference call.”

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Dividend

The Company’s regular quarterly cash dividend of $0.33 per share is payable on April 15, 2020 to shareholders of record on March 31, 2020.

Inter Parfums, Inc. News Release	Page 3
March 2, 2020

Conference Call

Management will conduct a conference call to discuss financial results and business developments at 11:00 AM ET, Tuesday, March 3, 2020. Interested parties may participate by dialing (201) 493-6749; please call in 10 minutes before start time and ask for the Inter Parfums call. To listen to the call over the Internet, go to www.interparfumsinc.com and click on the Investor Relations section.

Founded in 1982, Inter Parfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Dunhill, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade New York, MCM, Montblanc, Oscar de la Renta, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. Inter Parfums is also the owner of Lanvin fragrances and the Rochas brand. Through its global distribution network, the Company’s products are sold in over 120 countries.

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 Inter Parfums’ annual report on Form 10-K for the fiscal year ended December 31, 2019 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact at Inter Parfums, Inc.	-or-	Investor Relations Counsel
Russell Greenberg, Exec. VP & CFO		The Equity Group Inc.
(212) 983-2640	Fred Buonocore (212) 836-9607/fbuonocore@equityny.com
rgreenberg@interparfumsinc.com	Linda Latman (212) 836-9609/llatman@equityny.com
www.interparfumsinc.com	www.theequitygroup.com

See Accompanying Tables

Inter Parfums, Inc. News Release	Page 4
March 2, 2020

INTER PARFUMS, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands except per share data)

(Unaudited)

****	Three Months Ended December 31,					****	Twelve Months Ended December 31,
****	2019		****	2018		****	2019		****	2018
Net sales	$	177,803		$	177,227		$	713,514		$	675,574
Cost of sales		63,119			60,095			267,578			248,012
Gross margin		114,684			117,132			445,936			427,562
Selling, general and administrative expenses		102,349			106,545			341,209			332,831
Income from operations		12,335			10,587			104,727			94,731
Other expenses (income):
Interest expense		932			1,025			2,146			2,578
Loss on foreign currency		310			436			1,128			251
Interest income		(807	)		(636	)		(3,693	)		(3,957
		435			825			(419	)		(1,128
Income before income taxes		11,900			9,762			105,146			95,859
Income taxes		3,064			594			29,076			26,144
Net income		8,834			9,168			76,070			69,715
Less: Net income attributable to the noncontrolling interest		645			1,121			15,821			15,922
Net income attributable to Inter Parfums, Inc.	$	8,189		$	8,047		$	60,249		$	53,793
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic	$	0.26		$	0.26		$	1.92		$	1.72
Diluted	$	0.26		$	0.26		$	1.90		$	1.71
Weighted average number of shares outstanding:
Basic		31,473			31,340			31,451			31,308
Diluted		31,713			31,584			31,689			31,522
Dividends declared per share	$	0.33		$	0.28		$	1.16			0. 91

All values are in US Dollars.

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Inter Parfums, Inc. News Release	Page 5
March 2, 2020

INTER PARFUMS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2019 and 2018

(In thousands except share and per share data)

			2018
Assets
Current assets:
Cash and cash equivalents	192,417		$	193,136
Short-term investments	60,714			67,870
Accounts receivable, net	133,010			133,320
Inventories	167,809			161,778
Receivables, other	2,054			2,112
Other current assets	17,123			12,576
Income taxes receivable	169			810
Total current assets	573,296			571,602
Equipment and leasehold improvements, net	11,107			9,839
Right-of-use assets, net	28,359			--
Trademarks, licenses and other intangible assets, net	201,983			204,325
Deferred tax assets	8,004			5,761
Other assets	6,083			6,302
Total assets	828,832		$	797,829
Liabilities and Equity
Current liabilities:
Current portion of long-term debt	12,326		$	23,155
Current portion of lease liabilities	5,356			--
Accounts payable - trade	54,098			58,328
Accrued expenses	96,421			94,668
Income taxes payable	5,865			4,396
Dividends payable	10,399			8,630
Total current liabilities	184,465			189,177
Long–term debt, less current portion	10,734			22,906
Lease liabilities, less current portion	24,635			--
Equity:
Inter Parfums, Inc. shareholders’ equity:
Preferred stock, 0.001 par value. Authorized 1,000,000 shares; none issued	--			--
Common stock, 0.001 par value. Authorized 100,000,000 shares; outstanding, 31,513,018 and 31,382,127 shares at December 31, 2019 and 2018, respectively	31			31
Additional paid-in capital	70,664			69,970
Retained earnings	474,637			448,731
Accumulated other comprehensive loss	(39,853	)		(33,650	)
Treasury stock, at cost, 9,864,805 common shares at December 31, 2019 and 2018	(37,475	)		(37,475	)
Total Inter Parfums, Inc. shareholders’ equity	468,004			447,607
Noncontrolling interest	140,994			138,139
Total equity	608,998			585,746
Total liabilities and equity	828,832		$	797,829

All values are in US Dollars.

See accompanying notes to consolidated financial statements.