Interparfums, Inc. Revenue & Financials

Interparfums reported record net sales of $1.45 billion for fiscal 2024 ended December 31, 2024, a 10% increase over the $1.32 billion reported in fiscal 2023. The growth was broad-based across the portfolio and geographic regions, with fourth quarter net sales of $362 million also up 10% year-over-year. Gross profit was $928 million, yielding a gross margin of 63.9%, up 20 basis points from 63.7% in fiscal 2023, driven by favorable brand and channel mix. European based operations reported gross margins of 64.5% for Q4 2024 and 65.5% for Q1 2025, while U.S. based operations reported 58.7% gross margins in both periods, reflecting the premium positioning and duty-free exposure of the European business. Operating income before impairment loss was $279 million in fiscal 2024, representing an operating margin of 19.2%, up 10 basis points from 19.1% in fiscal 2023. After a $4 million impairment loss, reported operating income was $275 million (18.9% margin). The impairment reflected inventory obsolescence risk inherent in the trend-driven fragrance category. Net income attributable to Interparfums, Inc. was $164 million, up 8% from $153 million in fiscal 2023. Diluted earnings per share were $5.12 ($5.18 before impairment), up from $4.75 in the prior year. The effective tax rate was not separately disclosed, but the company's blended rate reflects U.S. and French corporate tax structures. The balance sheet remained conservative. As of March 31, 2025, cash, cash equivalents, and short-term investments totaled $171.9 million, with working capital of $604.6 million. Approximately 78% of total assets are held by European based operations, and approximately $277 million of trademarks, licenses, and other intangible assets are held by the European subsidiary. Long-term debt including current maturities aggregated $179.1 million as of September 30, 2024, consisting primarily of three loans: a $55 million four-year facility for the Lacoste trademark acquisition (at EURIBOR plus 0.825%, swapped to a maximum 2% rate), a $131 million 10-year facility for the Interparfums SA headquarters acquisition (at one-month Euribor plus 0.75%, swapped to approximately 1.1% fixed), and a $44 million three-year facility at 4.03% fixed. The company has not had liquidity issues and maintains investment-grade credit relationships. The first quarter of 2025 continued the record performance. Net sales were $338.8 million, a 5% increase over the prior year (6% at constant exchange rates). European based operations grew 7% to $247.8 million, led by Jimmy Choo (+36%), Coach (+11%), and Lacoste (+30%). U.S. based operations declined 1% to $94.3 million on a reported basis, but increased 3% organically, with the discontinuation of the Dunhill license creating a 4% negative impact. Gross margin was 63.7% for the quarter, up from 62.5% in Q1 2024. Net income attributable to Interparfums, Inc. was $42.5 million, up from $41.0 million in Q1 2024. The company reaffirmed its full-year 2025 guidance of net sales of $1.51 billion and earnings per diluted share of $5.35, a 4% increase for both metrics. The company has guided that promotion and advertising expenditures will aggregate approximately 21% of net sales on a full-year basis, reflecting the heavy marketing investment required to support new launches and maintain brand awareness in the competitive fragrance market.