Key Highlights

  • Revenue was USD 429.51 million against a USD 430.00 million estimate, and EPS was USD 2.13 against USD 1.81.
  • European based product sales were USD 305.9 million, while United States based sales were USD 127.3 million, down 7%.
  • Cash and short-term investments were USD 240.2 million, and EUR 55.0 million was drawn on a EUR 200 million line.
  • The next quarterly Dividend of USD 0.80 per share is payable on December 31, 2026 to holders of record.

Interparfums, Inc. (NASDAQ:IPAR) closed its third quarter with Revenue of USD 429.51 million, against a USD 430.00 million estimate, and EPS of USD 2.13, against an estimate of USD 1.81. Diluted GAAP EPS was also USD 2.13, compared with USD 2.05 a year earlier. The fragrance licensee put a new euro Credit Facility in place and kept buying shares of its Paris-listed subsidiary.

Third Quarter Results and Margins

Net sales were USD 429.5 million, against USD 429.6 million a year earlier, a quarter the company described as flat. The average dollar/euro rate was 1.15, against 1.17, which the company said had a negative 0.4% effect on net sales. Gross Margin was 67.1% of net sales, against 63.5%, which management tied to brand, channel and segment mix and USD 9.6 million lower destruction costs, partly offset by Tariff costs.

Operating margin was 27.4%, against 25.3% in the prior-year quarter. Selling, general and administrative expenses were 39.7% of net sales, compared with 38.2%, reflecting higher employee costs, Royalty Brand mix and logistics costs. Net Income attributable to Interparfums, Inc. was USD 68.2 million, against USD 65.8 million.

Brands, Regions and the Giftset Delay

European based sales rose 4%, made up of 3% organic growth and a 1% contribution from new brands, with a 1% currency headwind. Coach fragrance sales rose 23% in the quarter, and Montblanc rose 12% after flat second quarter sales.

United States based sales fell 7%. Management attributed the decline largely to Supply chain disruptions that delayed giftset shipments for select brands, representing approximately USD 10 million of sales that is scheduled to be recognized in the fourth quarter. Over nine months, North America sales rose 4% and Asia/Pacific rose 12%, while Western Europe fell 3% and the Middle East and Africa fell 19%, a decline the company linked to the war in the region.

Cash, Credit Facility and Capital Returns

Cash, cash equivalents and short-term investments were USD 240.2 million at September 30, and Working Capital was USD 731 million. Operating Cash Flow for the nine months was USD 102.3 million, against USD 68.4 million a year earlier. IEEPA tariff refunds received to date total USD 17.3 million.

On August 12, the company entered into a EUR 200 million senior secured credit facility to fund its Interparfums SA share repurchase program. It had drawn EUR 55.0 million at quarter end, with EUR 145.0 million of borrowing capacity remaining. During the quarter it invested approximately USD 49.5 million in additional Subsidiary shares, moving its ownership from approximately 72.5% to 74.3%. The Board maintained the annual dividend at USD 3.20 per share.

Management described a cautiously positive outlook for the balance of the year and 2027 and gave no numeric guidance. It said tariff refunds are being reinvested in advertising, with full year promotion and Advertising spending approaching a long-term target of approximately 21% of net sales.

Metrics to Track

Revenue of USD 429.51 million sits alongside EPS of USD 2.13, a gross margin of 67.1% and a USD 0.80 quarterly dividend. Nine-month net sales were USD 1,115.4 million, against USD 1,102.3 million.

Management named several dated items: USD 10 million of delayed giftset sales in the fourth quarter, the first Longchamp launch in 2027, and the David Beckham and Nautica licenses effective April 1, 2028 and January 1, 2030. The Roberto Cavalli license was extended in September through December 31, 2046.