Interparfums (ITP) H1 2026 earnings summary

Executive summary

• H1 2026 sales reached €414.3m, down 7.3% year-over-year at current exchange rates, but only -3.7% at constant rates, with resilience in key brands and markets like the US and China.

• Gross margin improved to 67.3% (+180 bp), aided by US tariff reimbursements and strong US subsidiary performance.

• Operating margin remained robust at 21.1%, demonstrating business model agility despite contraction in activity.

• Net income was €65.5m, down 10% year-over-year, reflecting a resilient margin profile.

• Key brands Coach and Jimmy Choo grew in the US, offsetting declines in other regions and brands.

Financial highlights

• Sales: €414.3m (-7.3% year-over-year); at constant exchange rates: €430.6m (-3.7%).

• Gross margin: €278.8m, 67.3% of sales (+180 bp year-over-year).

• Operating profit: €87.3m (-16% year-over-year), margin 21.1%.

• Net income: €65.5m (-10% year-over-year), net margin 15.8%.

• Diluted EPS was €0.78, compared to €0.96 in H1 2025.

Outlook and guidance

• 2026 sales expected between €850m and €870m, a moderate decline of 3% at constant exchange rates.

• Excluding Middle East conflict impact (~€15m), decline would be ~1%.

• Large-scale launch plan for 2027-2028 with 20+ major initiatives, including new and extended franchises.

• Operating margin for the full year 2026 is expected to be around 18%.

• Gradual improvement in activity anticipated in H2 2026, with focus on preparing for major launches.