8-K
INTERPARFUMS INC (IPAR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 5, 2025
Interparfums, Inc.
(Exact name of Registrant as specified in its charter)
| Delaware | 0-16469 | 13-3275609 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | Commission<br>File Number | (I.R.S. Employer<br>Identification No.) |
551 Fifth Avenue, New York, NY 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 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)) |
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange <br>on which registered |
|---|---|---|
| Common Stock, $.001 par value per share | IPAR | The Nasdaq Stock Market |
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 May 5, 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 1^st^, 2^nd^ (consisting of a table), 3^rd^ through 5^th^, 8^th^, and 9th through 16^th^ full paragraphs relating to results of operations for the first quarter of 2025
- The 17^th^paragraph relating to balance sheet items and cash flow^^
- The 18^th^ paragraph relating to inventory and supply chain
- The 22^nd^ through 24^th^ paragraphs relating to the previously announced conference call scheduled for May 6, 2025
- The consolidated statements of income and consolidated balance sheets
Item 7.01 Regulation FD Disclosure
Certain portions of our press release dated May 5, 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 6^th^ paragraph relating to the Company’s portfolio of future innovation pipelines, including new blockbusters and product extension lines for the remainder of the year and the previously announced Coach license extension
- The 7^th^ paragraph relating to future 2026 plans for the recently acquired Annick Goutal brand and the 2026 launch of the Company’s first proprietary brand, Solférino
- The 19^th^ paragraph relating to the potential impact of tariffs on the Company’s supply chain, as well as the possibility of a price increase on select brands in August 2025
- The 20^th^ paragraph relating to reaffirmance of the previously announced 2025 guidance for the Company
- The 27^th^ paragraph relating to forward-looking information
- The balance of such press release not otherwise incorporated by reference in Item 2.02.
Item 8.01 Other Events
- The 21^st^ paragraph relating to Dividends
Item 9.01 Financial Statements and Exhibits.
| 99.1 | Our press release dated May 5, 2025 |
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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: May 5, 2025
| Interparfums, Inc. | |
|---|---|
| By: | /s/ Michel Atwood |
| Michel Atwood, | |
| Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
INTERPARFUMS, INC. REPORTS 2025 FIRST QUARTER RESULTS
Reaffirms 2025 Sales and Earnings Guidance
New York, New York, May 5, 2025, Interparfums, Inc. (NASDAQ GS: IPAR) today reported results for the first quarter ended March 31, 2025.
| First Quarter Highlights:<br><br><br>($ in millions, except per share amounts) | Three Months Ended<br><br><br>March 31, | ||
|---|---|---|---|
| 2025 | 2024 | % Change | |
| Net Sales | $339 | $324 | 5% |
| Gross Margin | 63.7% | 62.5% | +120 bps |
| Operating Income | $75 | $68 | 10% |
| Operating Margin | 22.2% | 21.0% | +120 bps |
| Net Income attributable to Interparfums, Inc. | $42 | $41 | 4% |
| Diluted EPS | $1.32 | $1.27 | 4% |
| The average dollar/euro exchange rate for the 2025 first quarter was 1.05 compared to 1.09 in the 2024 first quarter leading to a negative 1% foreign exchange impact on sales. |
Operational Commentary
Jean Madar, Chairman & Chief Executive Officer of Interparfums noted, “We started the year with strong momentum, driven by continued demand for our key brands and a dynamic lineup of new fragrance innovation, leading to sales growth of 5% for the quarter.
“On an organic basis, excluding the impact of foreign exchange and the discontinuation of the Dunhill license, net sales rose by 7%, due in large part to gains by our Jimmy Choo, Coach, and Lacoste fragrances for European based operations and Donna Karan/DKNY, MCM, and Roberto Cavalli fragrances for United States based operations.
“Our largest markets, North America and Western Europe achieved gains of 14% and 1%, respectively. Eastern Europe posted a 46% increase in sales, rebounding from a 22% decline in last year’s first quarter, which was driven by temporary sourcing constraints that have been resolved. Asia/Pacific sales declined by 3% largely due to the high bar set in the prior year period when sales rose 13% with exceptional sales in Australia. Central and South America declined 10%, also off a very high base in 2024 when the region grew 31%. Middle East and Africa sales declined 16% due to macroeconomic challenges and a disproportionate impact from the exit of the Dunhill license due to its significant presence there.
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“We remain dedicated to sustaining the current momentum of our existing fragrance lines, while simultaneously executing a robust innovation pipeline that introduces fragrance blockbusters and extensions to further elevate our brands. As a testament to our success and as previously announced, we renewed our partnership with Coach for another five-year period, extending the license until June 30, 2031.
“We are also expanding our portfolio of high-end fragrance brands, exemplified by the launch of our proprietary Solférino collection this summer, plus the acquisitions of Off-White and Annick Goutal, with commercialization set to commence in 2026 for both brands.”
Mr. Madar closed by saying, “Our business has proven to be resilient, with a strong foundation, organizational agility and adaptability that allows us to navigate the complex, challenging economic uncertainties that we face.”
Financial Commentary
Michel Atwood, Chief Financial Officer of Interparfums stated, “For the first quarter of 2025, we delivered earnings per diluted share of $1.32, a 4% year over year increase, underscoring the strength of our business model.
“Consolidated gross margin for the quarter was 63.7%, up from 62.5% in the prior period. The 120 basis point improvement was driven by favorable brand and channel mix.
“Selling, General and Administrative (“SG&A”) expenses as a percentage of net sales were 41.6%, a 10 basis point increase from the prior year period as higher advertising and promotional (“A&P”) spending was offset by efficiencies and scale benefits related to other fixed SG&A items.
“For European based operations, SG&A as a percentage of net sales decreased to 38.7% in the first quarter of 2025 from 39.1% in the prior year period. This reduction was driven by scale benefits in fixed costs and favorable brand mix on royalties, partially offset by higher A&P expenditures.
“For United States based operations, SG&A expenses as a percentage of net sales increased 1.6% 160 basis points, largely driven by the annualization impact of the investments in infrastructure and headcount made throughout 2024 to support the growth of the business as well as increased A&P spending, which were partially offset by efficiencies in other SG&A cost buckets.”
Mr. Atwood continued, “During the quarter, we invested $52 million on A&P initiatives to build brand awareness and support new product launches, a 7% increase compared to the prior year period, which represents 15.2% of net sales versus 14.9% in last year’s first quarter.
“These factors led to a 10% increase in operating income to $75 million, or an operating margin of 22.2%, up from 21.0% in the first quarter of 2024.
“Other income and expenses, for the three months ended March 31, 2025, was a loss of $1.7 million as compared to a gain of $2.1 million in the corresponding prior year period, leading to a negative impact of $3.8 million due to foreign exchange and unrealized losses on marketable securities.
“We closed the first quarter in a strong financial position with $172 million in cash, cash equivalents and short-term investments, and working capital of $605 million. By effectively managing working capital increases relative to our sales growth, we significantly improved our operating cashflow by $45 million, reducing cash used in operating activities from $52 million in the prior year period to $7 million in the first quarter 2025.
“In anticipation of potential supply chain constraints, we maintained overall inventory levels, but continued to accelerate the conversion of raw materials into finished goods.”
Mr. Atwood concluded, “We are actively working to mitigate the potential impacts of the recent tariffs by better aligning our supply chain footprint to the countries where the products are sold, identifying alternative sourcing for some of the products we purchase from China, and considering 4% to 6% price increases on select brands and regions in August 2025.”
Reaffirms 2025 Guidance
The Company reaffirms its 2025 guidance of net sales of $1.51 billion and earnings per diluted share of $5.35, a 4% increase for both metrics.
Dividend
The Company’s regular quarterly cash dividend of $0.80 per share will be paid on June 30, 2025, to shareholders of record on June 13, 2025.
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Conference Call Details
Management will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Tuesday, May 6, 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 and other 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.
Our 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:
| Inter Parfums, Inc. | or | The Equity Group Inc. |
|---|---|---|
| Michel Atwood | Karin Daly | |
| Chief Financial Officer | Investor Relations Counsel | |
| (212) 983-2640 | (212) 836-9623 / kdaly@equityny.com | |
| www.interparfumsinc.com | www.theequitygroup.com |
See Accompanying Tables
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INTERPARFUMS, INC. AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
(In thousands except share and per share data)
| Assets | **** | **** | **** | **** | **** |
|---|---|---|---|---|---|
| December31, 2024 | **** | ||||
| Current assets: | |||||
| Cash and cash equivalents | 96,617 | $ | 125,433 | ||
| Short-term investments | 75,310 | 109,311 | |||
| Accounts receivable, net | 302,268 | 274,705 | |||
| Inventories | 395,888 | 371,920 | |||
| Receivables, other | 6,414 | 6,122 | |||
| Other current assets | 34,514 | 27,035 | |||
| Income taxes receivable | 63 | 306 | |||
| Total current assets | 911,074 | 914,832 | |||
| Property, equipment and<br> leasehold improvements, net | 158,850 | 153,773 | |||
| Right-of-use assets, net | 23,463 | 24,603 | |||
| Trademarks, licenses and<br> other intangible assets, net | 312,258 | 282,484 | |||
| Deferred tax assets | 16,046 | 17,034 | |||
| Other assets | 18,834 | 18,535 | |||
| Total assets | 1,440,525 | $ | 1,411,261 | ||
| Liabilities<br> and Equity | |||||
| Current liabilities: | |||||
| Loans payable - banks | 7,571 | $ | 8,311 | ||
| Current portion of<br> long-term debt | 43,425 | 41,607 | |||
| Current portion of lease<br> liabilities | 6,148 | 6,087 | |||
| Accounts payable – trade | 98,885 | 91,049 | |||
| Accrued expenses | 128,673 | 172,758 | |||
| Income taxes payable | 21,749 | 12,615 | |||
| Total current liabilities | 306,451 | 332,427 | |||
| Long–term debt, less<br> current portion | 107,369 | 115,734 | |||
| Lease liabilities, less<br> current portion | 19,186 | 20,455 | |||
| Equity: | |||||
| Interparfums, Inc.<br> shareholders’ equity: | |||||
| Preferred stock, .001 par; authorized 1,000,000 shares; none issued | — | — | |||
| Common stock, .001 par; authorized 100,000,000 shares; outstanding 32,124,000 and<br> 32,110,170 shares at March 31, 2025 and December 31, 2024, respectively | 32 | 32 | |||
| Additional paid-in capital | 107,985 | 106,702 | |||
| Retained earnings | 780,338 | 763,240 | |||
| Accumulated other comprehensive loss | (46,854 | ) | (72,239 | ) | |
| Treasury stock, at cost, 9,981,665 and 9,981,665<br> shares at March 31, 2025 and December 31, <br> 2024, respectively | (52,864 | ) | (52,864 | ) | |
| Total Interparfums, Inc.<br> shareholders’ equity | 788,637 | 744,871 | |||
| Noncontrolling interest | 218,882 | 197,774 | |||
| Total equity | 1,007,519 | 942,645 | |||
| Total liabilities and<br> equity | 1,440,525 | $ | 1,411,261 |
All values are in US Dollars.
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INTERPARFUMS, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
(In thousands except per share data)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| 2025 | **** | 2024 | ||||
| Net sales | $ | 338,819 | $ | 323,963 | ||
| Cost of sales | 122,842 | 121,578 | ||||
| Gross margin | 215,977 | 202,385 | ||||
| Selling, general and administrative expenses | 140,900 | 134,412 | ||||
| Income from operations | 75,077 | 67,973 | ||||
| Other expenses (income): | ||||||
| Interest expense | 1,545 | 1,807 | ||||
| Loss (gain) on foreign currency | 781 | (905 | ) | |||
| Interest and investment income | (581 | ) | (3,020 | ) | ||
| Other (income) loss | (79 | ) | 38 | |||
| Nonoperating Income (Expense) | 1,666 | (2,080 | ) | |||
| Income before income taxes | 73,411 | 70,053 | ||||
| Income taxes | 18,008 | 16,750 | ||||
| Net income | 55,403 | 53,303 | ||||
| Less: Net income attributable to the noncontrolling<br> interest | 12,911 | 12,255 | ||||
| Net income attributable to Interparfums, Inc. | $ | 42,492 | $ | 41,048 | ||
| Earnings per share: | ||||||
| Net income attributable to Interparfums, Inc. common shareholders: | ||||||
| Basic | $ | 1.32 | $ | 1.28 | ||
| Diluted | $ | 1.32 | $ | 1.27 | ||
| Weighted average number of shares outstanding: | ||||||
| Basic | 32,121 | 32,041 | ||||
| Diluted | 32,174 | 32,266 | ||||
| Dividends declared per share | $ | 0.80 | $ | 0.75 | ||
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