Inter Parfums (IPAR) investor relations material

Executive summary

• Net sales for Q3 2025 rose 1% year-over-year to $430 million; nine-month sales up 1% to $1.1 billion, with European operations up 6% and U.S. operations down 10% due to the Dunhill license discontinuation.

• Net income attributable to shareholders increased 6% year-over-year in Q3 to $66 million; nine-month net income was stable at $140 million.

• Gross profit margin improved to 64.4% for the nine months, driven by favorable brand and channel mix, despite tariff impacts.

• Innovation, new product launches, and digital channel expansion are key strategic focuses, with strong performance from brands like Jimmy Choo, Coach, and Lacoste.

• E-commerce and travel retail channels showed robust growth, and the company launched its first ultra-luxury direct-to-consumer offering.

Financial highlights

• Gross margin for Q3 was 63.5%, down 40 bps year-over-year; nine-month gross margin improved 80 bps to 64.4%.

• Operating income for Q3 was $109 million (2% increase), with a 25.3% margin; nine-month operating income up 2% to $243 million.

• Net income for Q3 was $66 million, up 6% year-over-year; year-to-date net income was $140 million, with diluted EPS up modestly to $4.36.

• Cash provided by operating activities was $68 million for the nine months, up from $50 million a year ago.

• Working capital stood at $688 million as of September 30, 2025.

Outlook and guidance

• Full-year 2025 sales are expected to be approximately $1.47 billion (1% growth), with diluted EPS of $5.12, in line with 2024.

• Moderate top and bottom line growth anticipated for 2026, with a return to stronger growth in 2027 driven by new licenses and innovation.

• Management expects continued benefit from pricing actions and innovation, with full impact anticipated in late 2025 and into 2026.

• Anticipates potential inflationary impacts in late 2025 and beyond due to supplier price adjustments.