Inter Parfums (IPAR) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $1.49 billion and diluted EPS of $5.24 for FY2025, both exceeding guidance, with Q4 sales of $386 million, the best ever fourth quarter performance.

• Growth driven by blockbuster fragrance launches, portfolio expansion, and strong brand performances, especially from Lacoste, Cavalli, and MCM, as well as the launch of the luxury brand Solférino.

• Maintained market share and delivered strong operational milestones despite macroeconomic headwinds, tariffs, and FX pressures, through operational discipline and supply chain optimization.

• Expanded digital and travel retail channels, with Amazon and TikTok Shop showing strong engagement.

• Board approved an annual cash dividend of $3.20 per share for 2026, unchanged from 2025.

Financial highlights

• Q4 2025 net sales grew 7% reported and 3% organic; full year sales up 7% reported and 4% organic, with net sales growing 2% for the full year compared to 2024.

• Gross margin for FY2025 was 63.6%, down 20 bps year-over-year due to tariffs, with $12.8 million in higher costs.

• Operating income for the year declined 2% to $270 million; operating margin down to 18.2%.

• Net income reached a record $168 million, up 2% year-over-year; diluted EPS $5.24, up 2%.

• SG&A expenses increased to 45.5% of net sales, with A&P spend rising 5% to $295 million.

Outlook and guidance

• 2026 sales expected to remain steady at ~$1.48 billion, with diluted EPS of $4.85, reflecting one-time gains in 2025 and ongoing tariff headwinds.

• No further pricing actions planned unless market conditions change significantly.

• Anticipates stronger growth in 2027, driven by major brand innovations and new launches.

• Guidance assumes stable dollar/euro exchange rates and remains conservative due to market volatility and limited visibility.