INTERPARFUMS INC
For the period ended Mar 31, 2026. Filed May 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
IPAR$135.55+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001753926-25-001703
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001753926-26-000771
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 64 previous paragraphs and 63 current paragraphs.
25 unchanged; 28 reworded; 10 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
For the three months ended March 31, 2026, Macy's, our top retail customer, accounted for approximately 12% of net sales. No one customer represented 10% or more of net sales for the three months ended March 31, 2025.
Current report
For European based operations, sales in thethree months ended March 31, 2026 increased 2%, compared to the corresponding period of the prior year, which included a 5.5% positive foreign exchange impact. Coach fragrance sales grew 30%, in the first quarter of 2026, following an 11% increase in the prior year period. This growth was driven by strong sell-in following the launches of new extensions within the Coach Women and Coach Men franchises, Coach Cherry and Coach Platinum, as well as sustained strong demand across most existing lines. Montblanc fragrance sales rose 14% in the first quarter of 2026, driven by the launch of Legend Elixir, the continued success of Explorer Extreme, and a lower sales base in last year's first quarter. We plan to launch a new extension for the Explorer Extreme line in the second half of the year to sustain the brand. While Jimmy Choo fragrance sales continue to grow in the United States, supported by the ongoing success of the I Want Choo franchise and the first quarter launch of Jimmy Choo Man Parfum, overall brand net sales declined 4% in the first quarter of 2026. This reflected a moderate downturn in certain European and Asian markets. Fragrance sales of Lacoste declined 12% in the first quarter of 2026 against a high base in the prior year period in which sales grew 30% behind a very successful innovation program as well as challenging market conditions primarily in Eastern Europe. We remain confident in the brand's medium and long-term potential, given recent and upcoming extensions in 2026 and planned blockbuster launches in 2027 and 2028.
Current report
For United States based operations, sales in thethree months ended March 31, 2026 increased 2% compared to the corresponding period of the prior year, which included a 2.5% positive foreign exchange impact. GUESS fragrance sales rose 11% in the first quarter of 2026 supported by successful launches of new extension within the Iconic and Seductive pillars, Iconic Sublime, the newest men's fragrance that extends the franchise's strong momentum, and Seductive Desire, a bold new dual-gender fragrance duo. Following a successful first two years in our portfolio, Roberto Cavalli continued to generate robust results, achieving 32% sales growth during the first quarter of 2026. Growth was fueled by the latest innovation released during the quarter, including the Just Cavalli Wild Heart extension dual-gender duo, Wild Pink &Wild Blue, and Verde Assoluto, the newest fragrance within the Uomo pillar. Donna Karan/DKNY net sales declined by a modest 3% in the first quarter of 2026 off a strong sales base in the first quarter of 2025; however, sales of Be Delicious Core rebounded by 16% in the first quarter of 2026, compared to the prior year period, reflecting renewed consumer demand and strengthening momentum for the franchise. We expect sales to improve as the year progresses, driven by support for the new DKNY three-scent collection, Be Delicious Latte, and the new fragrance for the Donna Karan Cashmere Collection, Cashmere & Rose Absolu.
Current report
While the 2026 first quarter experienced a slight decline in organic sales, net sales grew overall, and we remain cautiously optimistic about the remainder of 2026. Looking ahead to 2027, we continue to be optimistic by the enhanced offerings within our current portfolio of brands, the introduction of new fragrances from recently acquired brands and licenses, and the selective pursuit of incremental brand opportunities. While the pace of growth in the market is starting to normalize closer to historical levels following massive growth seen over the past few years, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.
Current report
In thethree months ended March 31, 2026, net sales in our largest market, North America, rose 7% as compared to the prior year period behind continued market growth, the launch of several extensions, in particular for Coach, as well as successful marketing and advertising investments, while sales in Western Europe remained flat behind slow consumer demand. Our sales in Asia/Pacific decreased by 7% driven by distribution changes we implemented in 2025 in South Korea and India, and softer consumer demand in Australia/New Zealand, which were partially compensated by strong growth in China. Central and South America net sales increased 23% due to the success of women's and men's Coach franchises and the strength of the Montblanc Legend line. Our net sales in Eastern Europe decreased 12% in thethree months ended March 31, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste. Middle East and Africa net sales also declined 12% primarily due to recent intensification of the conflicts in those regions.
Current report
The Company’s gross profit margin as a percentage of net sales was 65.1%for thethree months ended March 31, 2026 as compared to 63.7% for the corresponding period of the prior year. The increase was the result of favorable segment, brand and channel mix as well as lower than expected destruction costs. These were partially offset by tariffs which represented an expense of $6 millionin thethree months ended March 31, 2026 as compared to the prior year period.
Current report
For European based operations, gross profit margin as a percentage of net sales was 67.4% for thethree months ended March 31, 2026, respectively, as compared to 65.5% for the corresponding period of the prior year. The increase was the result of favorable brand and channel mix as well as lower than expected destruction costs. These were partially offset by tariffs which represented an expense of $4 millionin the three months ended March 31, 2026 as compared to the prior year period.
Current report
For United States based operations, gross profit margin as a percentage of net sales remained flat at 58.9% for thethree months ended March 31, 2026 respectively, as compared to 58.7% for the corresponding period of the prior year. Favorable brand and channel mix as well as lower than expected destruction costs were offset by tariffs which represented an expense of $2 millionin the three months ended March 31, 2026 as compared to the prior year period.
Current report
The Company’s selling, general and administrative expenses as a percentage ofnet sales were 43.6% for the three months ended March 31, 2026 ascompared to 41.6%for the three months ended March 31, 2025. The increase in selling, general and administrative expenses as a percentage of net sales in the quarter resulted from royalty costs growing ahead of sales driven by unfavorable brand mix as well higher logistics costs related to supply chain transitions and channel mix.
Current report
For European based operations, selling, general and administrative expenses increased 8.8%for the three months ended March 31, 2026, respectively as compared to the corresponding period of the prior year, and represented 41.4% of net sales for thethree months ended March 31, 2026, as compared to 38.7% for thethree months ended March 31, 2025. The increase in expenses was largely driven by increases in employee related costs as we are building up our Korean subsidiary and higher logistics costs related to increased warehouse fees. Royalty costs also grew ahead of sales driven by unfavorable brand mix. For United States based operations, selling, general and administrative expenses increased 2.5% for thethree months ended March 31, 2026 as compared to the corresponding period of the prior year, in line with sales increases, and represented 47.9% of net sales for thethree months ended March 31, 2026, as compared to 47.6% for thethree months ended March 31, 2025.
Removed paragraphs (11)
Previous report
For European based operations, sales in thethree months ended September 30, 2025 increased 5%, compared to the corresponding period of the prior year, driven by Jimmy Choo, Lacoste and Coach, which grew by 16%, 8% and 6%, respectively. These increases were driven by continued strong performance in these brands' established lines. Sales of Montblanc were down 2% in the third quarter, despite the recent release of the Montblanc Explorer Extreme, resulting in a 6% decline for thenine months ended September 30, 2025, as compared to the prior year period. We have further enhanced the brand with the launch of Montblanc Signature Elixir and believe it will gain traction through the balance of the year and into 2026.
Previous report
For United States based operations, sales in thethree months ended September 30, 2025 decreased 6% compared to the corresponding period of the prior year as a result of the discontinuation of the Dunhill license. With the phase-out of Dunhill fragrances completed in August of 2024, we expect minimal impact on a quarter-over-quarter comparison going forward. GUESS fragrance sales declined moderately by 3% in thethree months ended September 30, 2025, compared to the corresponding period of the prior year, due to a high base in the prior period third quarter and the phasing of innovation. The brand continues to perform well, and we believe the brand is poised for sales growth in the final quarter of the year. Donna Karan/DKNY fragrance sales declined 14% in the three months ended September 30, 2025, compared to the corresponding period of the prior year, due to robust growth levels achieved last year. Based on planned shipments through year end and the brand's popularity during the holiday season, particularly in the Americas, we believe the brand will grow in the final quarter of the year. Roberto Cavalli fragrance sales continue to benefit from increased focus, investment and innovation, growing 44% and 33% in thethree and nine months ended September 30, 2025, respectively, compared to the corresponding periods in the prior year. The brand continues to benefit from strong innovation, including the blockbuster launch of Roberto Cavalli Serpentine and a new duo, Just Cavalli Give Me Magic. MCM sales rose by 6% in thethird quarter of 2025 compared to thethird quarter of 2024 with the continued success from the launch of the MCM Collection. For thenine months ended September 30, 2025, United States based operations sales decreased 10% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.
Previous report
While the 2025 third quarter saw only a slight overall increase, we are encouraged by our agility and pricing actions that are underway and expect to see the full impact of our efforts throughout the remainder of 2025 and through 2026. We continue to focus on our long-term strategy, innovative product development, and high service levels for our global retail and distribution partners. While the pace of growth in the fragrance market is starting to slow down, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.
Previous report
In thenine months ended September 30, 2025, net sales in our largest market, North America, rose 4% as compared to the prior year period, followed by an increase in Western Europe of 3%. Our sales in Asia/Pacific decreased by 9% driven by distribution disruptions in South Korea and India in the current year. Our net sales in Eastern Europe were also robust, up 6% in thenine months ended September 30, 2025 as compared to the prior year period when we faced temporary sourcing constraints. Central and South America net sales increased 12%. Middle East and Africa net sales declined 16% primarily related to a disproportionate impact from the exit of the Dunhill license due to its significant presence. Excluding the impact of Dunhill, Middle East and Africa net sales declined 7% due to the impacts of the conflicts in the region and a reduction in the number of doors in many markets that are now more focused on higher-end luxury fragrances.
Previous report
The Company’s gross profit margin as a percentage of net sales was 63.5%and 64.4%for thethree and nine months ended September 30, 2025 as compared to 63.9%and 63.6%for the corresponding periods of the prior year. The Company continued to benefit from favorable segment, brand, and channel mix, in the nine months ended September 30, 2025 as compared to the prior year period. However, during the three months ended September 30, 2025 as compared to the prior year period, these favorable tailwinds as well as additional pricing actions that were taken at the back end of the quarter were not sufficient to offset the impacts of higher tariffs on our US imports, which represented $6 million.
Previous report
For European based operations, gross profit margin as a percentage of net sales was 66.0% and 66.6%for thethree and nine months ended September 30, 2025, respectively, as compared to 66.2%and 66.3%for the corresponding period of the prior year. European based operations were negatively impacted by tariffs during the three months ended September 30, 2025 as compared to the prior year period, offset by pricing increases in the United States and brand and channel mix. During the nine months ended September 30, 2025, favorable channel mix resulted in the increase in gross profit as percentage of sales compared to the prior year period.
Previous report
For United States based operations, gross profit margin as a percentage of net sales was at 58.1% and 59.0%for thethree and nine months ended September 30, 2025 respectively, as compared to 59.2% and 58.2% for the corresponding periods of the prior year. United States based operations saw a moderate decline due to the negative impact of tariffs as well as brand and channel mix in the three months ended September 30, 2025. The increase in the nine months ended September 30, 2025 was mainly driven by the discontinuation of Dunhill products, which were sold at lower margins in 2024 as is customary during sell-off periods.
Previous report
The Company’s selling, general and administrative expenses as a percentage ofnet sales were 38.2% and 42.4% for the three and nine months ended September 30, 2025 ascompared to 38.9% and 41.8% for the three and nine months ended September 30, 2024. The decrease in the quarter was driven by the phasing of promotional and advertising activities. The increase in the first three quarters of the year was largely driven by increased overall spending on promotional and advertising activities and increased employee related costs, as well as negative foreign exchange impacts.
Previous report
For European based operations, selling, general and administrative expenses increased 1.5% and 4.9%for the three and nine months ended September 30, 2025, respectively as compared to the corresponding periods of the prior year, and represented 37.2% and 41.1% of net sales for thethree and nine months ended September 30, 2025, as compared to 38.3% and 41.5% for thethree and nine months ended September 30, 2024. A significant portion of our expense in European based operations are denominated in euros, resulting in costs as reported in USD. The decrease in selling, general and administrative expenses as a percentage of net sales in the third quarter and first nine months of the year was driven by the expiration of the 2022 free-share plan and distribution of shares in France in the second quarter resulting in the decrease in stock compensation amortization. For United States based operations, selling, general and administrative expenses decreased 4.4% and 2.3% for thethree and nine months ended September 30, 2025 as compared to the corresponding periods of the prior year, and represented 39.7% and 44.4% of net sales for thethree and nine months ended September 30, 2025, as compared to 39.0% and 41.1% for thethree and nine months ended September 30, 2024. The increase in selling, general and administrative expenses as a percentage of net sales was largely driven by lower sales in 2025 with the discontinuation of Dunhill in 2024.
Previous report
In December 2024, our 72% owned French subsidiary, Interparfums SA, obtained all Off-White brand names and registered trademarks for Class 3 fragrance and cosmetics products, subject to an existing license that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brands. Furthermore, in December 2024, we renewed the Van Cleef & Arpels license agreement for an additional nine-year term, beginning January 1, 2025. In July 2023, we entered into a global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Roberto Cavalli brand. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. This license took effect in July 2023, and we began shipping products in February 2024.
Previous report
In December 2022, we entered into a long-term global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Lacoste brand. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. This license took effect, and products began shipping in January 2024.
Reworded paragraphs (28)
Previous wording
We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 70% and 67% ofnet sales for thenine months ended September 30, 2025 and 2024, respectively. We have built a portfolio of prestige brands, which include Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.
Current wording
We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 72% ofnet sales for thethree months ended March 31, 2026 and 2025. We have built a portfolio of prestige brands, which include Boucheron, Coach, Goutal, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Longchamp, Moncler, Montblanc, Off-White, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.
Previous wording
Through our United States based operations, we also produce and distribute fragrance and fragrance related products. United States based operations represented 30% and 33% of net sales for thenine months ended September 30, 2025 and 2024, respectively. These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli brands.
Current wording
Through our United States based operations, we also produce and distribute fragrance and fragrance related products. United States based operations represented 28% of net sales for thethree months ended March 31, 2026 and 2025. These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli brands.
Previous wording
Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Coach, Montblanc, GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names.
Current wording
Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Coach, Jimmy Choo, Montblanc, GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names.
Previous wording
As a percentage of net sales for the nine months ended September 30, 2025 and 2024, product sales for the Company’s largest brands represented 78% and 75%, respectively, with a split by brand as follows:
Current wording
As a percentage of net sales for thethree months ended March 31, 2026 and 2025, product sales for the Company’s largest brands represented 81% and 76%, respectively, with a split by brand as follows:
Previous wording
Three and Nine Months Ended September 30, 2025 as Compared to the Three and Nine Months Ended September 30, 2024
Current wording
Three Months Ended March 31, 2026 as Compared to the Three Months Ended March 31, 2025
Previous wording
Net sales for thethree months ended September 30, 2025 increased 1% from thethree months ended September 30, 2024. The average dollar/euro exchange rate for the current third quarter was 1.17 compared to 1.10 in thethird quarter of 2024, resulting in a positive foreign exchange impact on net sales of 2.2% in the three months ended September 30, 2025 as compared to the prior year period. Net sales for the nine months ended September 30, 2025 also increased 1% as compared to the nine months ended September 30, 2024. The average dollar/euro exchange rate for the nine months ended September 30, 2025 was 1.12 compared to 1.09 for the nine months ended September 30 2024, resulting in a positive foreign exchange impact on nets sales of 1.1% as compared to the prior year period. The discontinuation of the Dunhill license decreased net sales for the nine months ended September 30, 2025 1% compared to the prior year period and a moderate impact in the current quarter compared to the prior year period. Overall organic growth on a year to date basis is 1.2% compared to the prior year period as consumers are being more selective and retailers are taking a cautious approach to inventory.
Current wording
Net sales for thethree months ended March 31, 2026 increased 2% from thethree months ended March 31, 2025. The average dollar/euro exchange rate for the current first quarter was 1.17 compared to 1.05 in thefirst quarter of 2025, resulting in a positive foreign exchange impact on net sales of 4.6% in the three months ended March 31, 2026 as compared to the prior year period.
Previous wording
Promotionand advertising included in selling, general and administrative expenses aggregated $65.5 million and $185.9 million for the three and nine months ended September 30, 2025, respectively, as compared to $66.8 million and $181.5 million for the corresponding periods of the prior year and represented 15.3% and 16.9% of net sales for the three and nine months ended September 30, 2025, respectively, as compared to 15.7% and 16.6% for the corresponding periods of the prior year. Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new product launches and to build brand awareness. We are also investing in line with anticipated sell out by our retailers, which we believe are higher than our reported sales. We believe that our promotion and advertising efforts have a beneficial effect on sales. As such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands. Long term, we continue to anticipate that on a full year basis, promotion and advertising expenditures will aggregate approximately 21% of net sales.
Current wording
Promotionand advertising included in selling, general and administrative expenses aggregated $51.6 million for the three months ended March 31, 2026, respectively, as compared to $51.5 million for the corresponding period of the prior year and represented 15.0% of net sales for the three months ended March 31, 2026, respectively, as compared to 15.2% for the corresponding period of the prior year. Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new product launches and to build brand awareness. We are also investing in line with anticipated sell out by our retailers, which we believe are higher than our reported sales. We believe that our promotion and advertising efforts have a beneficial effect on sales. As such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands. Long term, we continue to anticipate that on a full year basis, promotion and advertising expenditures will aggregate approximately 21% of net sales.
Previous wording
Royalty expense included inselling, general and administrative expenses aggregated $34.7 million and $90.5 million for thethree and nine months ended September 30, 2025, respectively, as compared to $34.0 million and $88.2 million for the corresponding periods of the prior year. Royalty expense represented 8.1% and 8.2%of net sales for both thethree and nine months ended September 30, 2025 as compared to 8.0% and 8.1% of net sales for the corresponding periods of the prior year. This increase was primarily driven by unfavorable brand mix.
Current wording
Royalty expense included inselling, general and administrative expenses aggregated$31.9 million for thethree months ended March 31, 2026, respectively, as compared to $28.1 million for the corresponding period of the prior year. Royalty expense represented 9.3%of net sales for thethree months ended March 31, 2026 as compared to 8.3% of net sales for the corresponding periods of the prior year. This increase was primarily driven by unfavorable brand mix.
Previous wording
As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 25.3% and 22.0% for thethree and nine months ended September 30, 2025, respectively, as compared to 25.0% and 21.9% for the corresponding period of the prior year.
Current wording
As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 21.5% for thethree months ended March 31, 2026, respectively, as compared to 22.2% for the corresponding period of the prior year.
Previous wording
Overall, other income and expense for thenine months ended September 30, 2025, was a loss of $7.7 million as compared to a loss of $7.1 million in the corresponding prior year period. One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $4.6 million in the first nine months of 2025 compared to $3.1 million in the first nine months of 2024. Another driver of this change is the impact of our gains and losses on marketable securities where we recordeda loss of $2.5 million in the first nine months of 2025 anda loss of $0.8 million in the first nine monthsof 2024. Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.8 million during thenine months ended September 30, 2025 as compared to a net interest expense of $2.9 million in the prior year period.
Current wording
Overall, other income and expense for thethree months ended March 31, 2026, was a gain of $1.1 million as compared to a loss of $1.7 million in the corresponding prior year period. The main drivers of the change are discussed in more detail below. These include the positive impact of the change in foreign currency where we recognized a loss of only $0.1 million in the first three months of 2026 compared to a loss of $0.8 million in the first three months of 2025. Additionally, we had a gain on interest income related to cash and cash equivalents and short-term investments of $1.7 million and a reduction in interest expense on borrowings of $0.1 million.
Previous wording
Interest expense is primarily related to the financing of brand and licensing acquisitions, as well as our headquarters in Paris. Long-term debt including current maturities aggregated $196.9 million and $157.3 million as of September 30, 2025 and December 31, 2024, respectively. Interest expense was $5.1 million in thenine months ended September 30, 2025 compared to $5.3 million in the prior year period.
Current wording
Interest expense is primarily related to the financing of brand and licensing acquisitions, as well as our headquarters in Paris. Long-term debt including current maturities aggregated $157.3 million and $176.0 million as of March 31, 2026 and December 31, 2025, respectively. Interest expense was $1.4 million in thethree months ended March 31, 2026 compared to $1.5 million in the prior year period.
Previous wording
We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Approximately 50% of net sales of our European based operations are denominated in U.S. dollars. Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements. Such gains and losses were immaterial in thethree and nine months ended September 30, 2025 and 2024.
Current wording
We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Approximately 50% of net sales of our European based operations are denominated in U.S. dollars. Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements. Such gains and losses were immaterial in thethree months ended March 31, 2026 and 2025.
Previous wording
Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities. Interest income was $4.4 million in thenine months ended September 30, 2025 compared to $2.7 million in the prior year period.
Current wording
Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities. Interest income was $1.6 million in thethree months ended March 31, 2026 compared to $1.3 million in the prior year period. Additionally, we recognized gains on marketable equity securities of $0.7 million in the three months ended March 31, 2026 compared a loss of $0.7 million in the three months ended March 31, 2025.
Previous wording
Our consolidated effective tax rate was 23.5% and 23.7% for thenine months ended September 30, 2025 and 2024, respectively. The effective tax rate for European based operations was 24.4% and 25.0% for thenine months ended September 30, 2025 and 2024, respectively. The decrease in taxes resulted from a $3 million favorable outcome to our mutual agreement procedure between the French and United States tax authorities in which we were able to reclaim the tax assessment paid in France in 2023. The gain was offset by a $1 million one-time tax assessment included in the tax expense as a result of a tax audit conducted for the 2022 and 2023 tax years. The effective tax rate for United States based operations was 20.0% for thenine months ended September 30, 2025, as compared to 19.8% for the corresponding period of the prior year. Our effective tax rate for United States based operations differs from the 21% statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign derived intangible income, slightly offset by state and local taxes. Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate.
Current wording
Our consolidated effective tax rate was 24.6% and 24.5% for thethree months ended March 31, 2026 and 2025, respectively. The effective tax rate for European based operations remained flat at 25.4% for thethree months ended March 31, 2026 as compared to 25.5% for the three months ended 2025. The effective tax rate for United States based operations was 19.7% for thethree months ended March 31, 2026, as compared to 18.1% for the corresponding period of the prior year. Our effective tax rate for United States based operations differs from the 21% statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign-derived deduction-eligible income, slightly offset by state and local taxes. Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate.
Previous wording
Net income attributable to Interparfums, Inc. was $65.8 million and $140.3 million for thethree and nine months ended September 30, 2025, respectively, as compared to $62.3 millionand $140.1 million for the corresponding period of the prior year.
Current wording
Net income attributable to Interparfums, Inc. was $43.4 million for thethree months ended March 31, 2026, respectively, as compared to $42.5 millionfor the corresponding period of the prior year.
Previous wording
Net income attributable to European based operations was $63.7 million and $144.6 million for thethree and nine months ended September 30, 2025, as compared to $54.4 millionand $132.6 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $20.8 million and $39.0 million thethree and nine months ended September 30, 2025, as compared to $24.3 millionand $49.0 million the corresponding periods of the prior year. The significant fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.
Current wording
Net income attributable to European based operations was $49.9 million for thethree months ended March 31, 2026, as compared to $48.1 million for the corresponding period of the prior year, while net income attributable to United States based operations was $8.4 million for thethree months ended March 31, 2026, as compared to $8.7 million the corresponding period of the prior year. The fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.
Previous wording
The noncontrolling interest arises from our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company, as 28% of Interparfums SA shares trade on the Euronext. Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 28% of European based operations net income for both thenine months ended September 30, 2025 and 2024. Net profit margins attributable to Interparfums, Inc. for thenine months ended September 30, 2025 and 2024 aggregated 12.7% and 12.8%, respectively.
Current wording
The noncontrolling interest arises from our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company, as 28% of Interparfums SA shares trade on the Euronext. Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 28% of European based operations net income for both thethree months ended March 31, 2026 and 2025. Net profit margins attributable to Interparfums, Inc. for thethree months ended March 31, 2026 and 2025 aggregated 12.6% and 12.5%, respectively.
Previous wording
Our conservative financial tradition has enabled us to amass significant cash balances. As of September 30, 2025, we had $187.9 million in cash, cash equivalents and short-term investments, the majority of which are held in euros by our European based operations and is readily convertible into U.S. dollars. We have not experienced any liquidity issues to date, and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments.
Current wording
Our conservative financial tradition has enabled us to amass significant cash balances. As of March 31, 2026, we had $237.1 million in cash, cash equivalents and short-term investments, the majority of which are held in euros by our European based operations and is readily convertible into U.S. dollars. We have not experienced any liquidity issues to date, and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments.
Previous wording
As of September 30, 2025, working capital aggregated $688.0 million. Approximately 77% of the Company’s total assets are held by European based operations, and approximately $294.4 million of trademarks, licenses and other intangible assets are also held by European based operations.
Current wording
As of March 31, 2026, working capital aggregated $692 million. Approximately 79% of the Company’s total assets are held by European based operations, and approximately $285 million of trademarks, licenses and other intangible assets are also held by European based operations.
Previous wording
The Company hopes to continue to benefit from its strong financial position to potentially acquireone or more brands, either on a proprietary basis or as a licensee. In July 2025, our 72% owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The first launch is expected in 2027. In June 2025, our 72% owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which is operating the Goutal brand under an existing license agreement that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brand. Additionally, in June 2025, we renewed the Coach license agreement for an additional five-year term, extending the license through June 30, 2031.
Current wording
The Company hopes to continue to benefit from its strong financial position to potentially acquire one or more brands, either on a proprietary basis or as a licensee. In January 2026, we entered into long-term global licensing agreements for the creation, development and distribution of fragrances and fragrance related products under the David Beckham and Nautica brands, effective April 1, 2028 and January 1, 2030, respectively. In July 2025, our 72% owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036. Our rights under these licenses are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The first launch under our Longchamp license is expected in 2027. In June 2025, our 72% owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which is operating the Goutal brand under an existing license agreement that expired on December 31, 2025, when Interparfums SA began commercial use of the fragrance brand. Additionally, in June 2025, we renewed the Coach license agreement for an additional five-year term, extending the license through June 30, 2031.
Previous wording
Cash provided by operating activities aggregated $68.4 million for thenine months ended September 30, 2025 compared to $49.7 million for thenine months ended September 30, 2024. For thenine months ended September 30, 2025, working capital items used $133.9 million in cash from operating activities, as compared to $147.0 million in the 2024 period. From a cash flow perspective, accounts receivables are up 23% from year end 2024. The balance is reasonable based onthird quarter 2025 sales levels and seasonality of the business. Days' sales outstanding increased to 89 days, up from 83 days in the corresponding period of the prior year, driven by changes in our channel mix. Despite the increase, we are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of September 30, 2025 decreased 5% from year end 2024 as we continue to drive inventory efficiencies. We are doing this by increasing conversion of raw materials into finished goods, resulting in finished goods making up 68% of our inventory levels at September 30, 2025 as compared to 63% at September 30, 2024.
Current wording
Cash provided by operating activities aggregated $0.1 million for thethree months ended March 31, 2026 compared to cash used in operating activity of $7.4 million for thethree months ended March 31, 2025. For thethree months ended March 31, 2026, working capital items used $67.3 million in cash from operating activities, as compared to $70.0 million in the 2025 period. From a cash flow perspective, accounts receivables are up 6% from year end 2025. The balance is reasonable based onfirst quarter 2026 sales levels and seasonality of the business. Days' sales outstanding increased to 78 days, up from 74 days in the corresponding period of the prior year, driven by changes in our channel mix. Despite the increase, we are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of March 31, 2026 increased 7% from year end 2025. Despite the increase, we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods, resulting in finished goods making up 64% of our inventory levels at March 31, 2026 as compared to 63% at March 31, 2025. Despite foreign exchange headwinds, our inventories are down significantly year over year with $370 million at March 31, 2026 compared to $396 million at March 31, 2025, translating to a reduction of 17 days inventory on hand.
Previous wording
Cash flows provided by investing activities in 2025 are comprised of the net effect of purchases and sales of short-term investments. These investments consist of certificates of deposit with maturities greater thansix months, marketable equity securities and other contracts. At September 30, 2025, approximately $2.3 million of certificates of deposit contain penalties where we would forfeit a portion of the interest earned in the event of early withdrawal.
Current wording
Cash flows used in investing activities in 2026 are comprised of the net effect of purchases and sales of short-term investments. These investments consist of certificates of deposit with maturities greater thansix months, marketable equity securities and other contracts. In the first quarter of 2026, our strong cash flow position has enabled us to increase our short-term investments by $23 million compared to the year ended December 31, 2025.
Previous wording
These proceeds were offset by the payment for capital expenditures during the year. In March 2025, the Company paid approximately $19.7 million for the purchase of the Goutal trademark. Additionally, during the second and third quarters the Company purchased approximately $18.2 million of additional property in Paris attached to its French headquarters.
Current wording
In March 2025, the Company paid approximately $19.7 million for the purchase of the Goutal trademark.
Previous wording
Our business is not capital intensive as we do not own any manufacturing facilities. On a full year basis, we typically spend approximately $5 million on tools and molds, depending on our new product development calendar. Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers.
Current wording
Our business is not capital intensive as we do not own any manufacturing facilities. On a full year basis, spend on tools and molds fluctuates depending on our new product development and is typically not material. Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers.
Previous wording
Cash flows used in financing activities in 2025 reflect issuances and repayments of debt to institutional lenders and payment of dividends to stockholders.
Current wording
Cash flows used in financing activities in 2026 predominately reflect repayments of debt and payments of dividends to stockholders.
Previous wording
Our short-term financing requirements are expected to be met by available cash on hand at September 30, 2025, and by short-term credit lines provided by domestic and foreign banks. The principal credit facilities for 2025 consist of $70.0 million unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.4 million(€8 million) in credit lines provided by a consortium of international financial institutions. There was $9.4 million of short-term borrowings outstanding pursuant to these facilities as of September 30, 2025 and $9.0 million outstanding as of September 30, 2024.
Current wording
Our short-term financing requirements are expected to be met by available cash on hand at March 31, 2026, and by short-term credit lines provided by domestic and foreign banks. The principal credit facilities for 2026 consist of $45 million in unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.2 million(€8 million) in credit lines provided by a consortium of international financial institutions. There was $4.6 million of short-term borrowings outstanding pursuant to these facilities as of March 31, 2026 and $7.6 million outstanding as of March 31, 2025.
Previous wording
In February 2024, the Board of Directors authorized an annual dividend of $3.00 per share. In February 2025, the Board of Directors further increased the annual dividend to $3.20 per share. The next quarterly cash dividend of $0.80 per share is payable on December 31, 2025, to shareholders of record on December 15, 2025.
Current wording
In February 2025, our Board of Directors authorized an annual dividend to $3.20 per share, and in 2026 our Board of Directors maintained the annual dividend at $3.20 per share. The next quarterly cash dividend of $0.80 per share is payable on June 30, 2026 to shareholders of record on June 15, 2026.
Previous wording
Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for thenine months ended September 30, 2025; however, we have already started to see the impacts of tariffs on our cost structure and have adjusted our pricing accordingly, as such, we anticipate potential inflationary impacts in the last quarter of 2025 and beyond as our suppliers potentially adjust their pricing as well.
Current wording
Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for thethree months ended March 31, 2026; however, we have already started to see the impacts of tariffs on our cost structure and had adjusted our pricing accordingly in 2025. We continue to monitor for potential inflationary impacts as our suppliers potentially adjust their pricing as well.