Interparfums (ITP) H1 2025 earnings summary

Executive summary

• H1 2025 sales reached €447 million, up 5.8% year-over-year, with strong growth in North America and standout performances from Coach (+24%) and Lacoste (+42%), while Montblanc declined 10%.

• Operating profit rose 12% to €103.8 million, a historical high, and net income increased 5% to €73.1 million.

• Growth was supported by acquisitions (Off-White, Annick/Annie Goutal), a license extension with Coach, and a new Longchamp license.

• The US market remained dynamic, with 50% of sales in dollars, but currency headwinds and tariff changes impacted results.

• External challenges included US tariffs, economic/geopolitical uncertainty, and a wait-and-see consumer attitude.

Financial highlights

• Gross margin rose 7% to €292.9 million (65.5% of sales), outpacing revenue growth, mainly due to the higher weight of the US subsidiary.

• Operating margin improved to 23.2% (+1.3 pts), and net margin was 16.3%–16.4%.

• Marketing and advertising expenses were stable at 18% of sales, totaling €81.6 million.

• Dividend paid: €1.15 per share (+10%), representing 67% of net income.

• Capital expenditures included €19 million for Annie Goutal and €14 million for headquarters expansion.

Outlook and guidance

• Full-year 2025 sales are projected at around €900 million, revised down from €910 million due to currency and market uncertainties.

• The company expects improved prospects for 2026 and 2027, with new brands and major launches.

• Retailers are cautious, with shorter and more immediate orders, reflecting low visibility and macroeconomic/geopolitical concerns.

• No significant price increases planned for 2025, except targeted 6-7% hikes in the US.

• The company remains cautious for H2 due to a challenging environment, especially in Europe and the Middle East.