Interparfums (ITP) H2 2025 earnings summary

Executive summary

• Achieved sales of €899.4m in 2025, up 2% at current exchange rates and 4% at constant rates, maintaining high operating and net margins despite a slowing fragrance market, geopolitical, macroeconomic, and currency headwinds.

• Operating profit was €175.2m (-2%), with a 19.5% margin; net income attributable to owners was €126.6m (-3%), with a 14.1% margin.

• Integrated three new brands, extended the Coach license, acquired Annick Goutal IP, and launched the Solférino Paris line.

• Over 21% of sales invested in marketing and advertising to support brand development.

• Maintained a strong balance sheet with net cash of €63m and shareholders' equity of €732m.

Financial highlights

• Sales: €899.4m (+2% year-over-year); at constant exchange rates: €918m (+4%).

• Gross margin: €582.1m (+1%), gross margin rate 64.7% (-0.9 pts); restated for US tariffs: €588.8m, 65.5%.

• Operating profit: €175.2m (-2%), operating margin 19.5% (-0.7 pts); restated: €182.8m (+3%), margin 20.3%.

• Net income: €126.6m (-3%), net margin 14.1% (-0.7 pts); restated: €132.3m (+2%), margin 14.7%.

• Dividend: €1.05 per share, 70% payout ratio.

Outlook and guidance

• Plans for 2026 include launching 12–15 extensions of current lines and preparing new franchises for 2027.

• Q1 2026 expected to be impacted by a high comparison base, unfavorable euro/dollar exchange rate, and a later launch program.

• Continued focus on Haute Parfumerie, with new launches and brand repositioning.

• Increased investments planned for 2026 to support launches in 2027 and 2028, aiming to maintain high operating margin.