Inter Parfums (IPAR) Q2 2026 earnings summary

Executive summary

• Net sales increased 2% year-over-year in Q2 and H1 2026, reaching $685.9M, with growth in North America (+5%), Asia Pacific (+14%), and Central/South America (+15%) offsetting declines in Europe and Middle East/Africa.

• Leading brands such as Coach (+10% H1), Montblanc (+6% H1), Jimmy Choo (+8% H1, +23% Q2), GUESS (+11% H1), Ferragamo (+17% H1, +41% Q2), and Donna Karan/DKNY (+12% H1, +28% Q2) drove growth, while Lacoste and Coach saw softness in some regions.

• Digital commerce, especially Amazon and TikTok Shop, remains a key growth driver.

• The war in the Middle East negatively impacted sales by 2-3% and remains a significant headwind.

Financial highlights

• Net sales grew 2% in Q2 and H1 2026, aided by FX; organic growth was 4% in Q2 and 1% H1, excluding Middle East headwinds.

• Gross margin expanded to 65.3% in H1, with tariff refunds contributing $6.9M as a non-recurring reduction in cost of sales.

• Operating profit for H1 was $123M (17.9% margin), down from 20% prior year; net income stable at $73.9M ($2.31/diluted share).

• A&P spending rose to $129M (18.8% of sales); full-year A&P expected near 21% of net sales.

• Cash provided by operating activities was $46M in H1, up from $5M prior year.

Outlook and guidance

• Maintains 2026 guidance: sales of ~$1.48B and diluted EPS of $4.85, including $17.6M in tariff refunds.

• Expects gross margin to improve by 150 bps for the year, with 110 bps from tariff refunds.

• Management remains optimistic for 2026 and 2027, citing a robust innovation pipeline, blockbuster launches, and new brand development.