INTERPARFUMS INC

Previous wording

We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products. We manage our business in two segments, European based operations and United States based operations. Certain prestige fragrance products are produced and marketed by our European based operations through 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.

Current wording

We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products. We manage our business in two segments, European based operations and United States based operations. Certain prestige fragrance products are produced and marketed by our European based operations through our 74% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 26% of Interparfums SA shares trade on the Euronext.

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 72% of net sales for thesix months ended June 30, 2026 and 2025. We have built a portfolio of prestige brands, which include Annick Goutal, Boucheron, Coach, 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.

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 70% of net sales for thenine months ended September 30, 2026 and 2025. We have built a portfolio of prestige brands, which include Annick Goutal, Boucheron, Coach, 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 28% of net sales for thesix months ended June 30, 2026 and 2025, 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 30% of net sales for thenine months ended September 30, 2026 and 2025, 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, PUMA, and Roberto Cavalli brands.

Previous wording

As a percentage of net sales for thesix months ended June 30, 2026 and 2025, product sales for the Company’s largest brands represented 81% and 77%, respectively, with a split by brand as follows:

Current wording

As a percentage of net sales for thenine months ended September 30, 2026 and 2025, product sales for the Company’s largest brands represented 82% and 78%, respectively, with a split by brand as follows:

Previous wording

For thesix months ended June 30, 2026, Macy's, our top retail customer, accounted for approximately 10% of net sales. No one customer represented 10% or more of net sales for the six months ended June 30, 2025.

Current wording

For thenine months ended September 30, 2026 and 2025, Macy's, our top retail customer, accounted for approximately 11% and 10% of net sales, respectively.

Previous wording

Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season. In certain markets where we sell directly to retailers, seasonality is more evident. We primarily sell directly to retailers in France, the United States, and Italy.

Current wording

Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season. In certain markets where we sell directly to retailers, seasonality is more evident. We primarily sell directly to retailers in France, the United States, Italy, and Korea.

Previous wording

Net sales for thethree months ended June 30, 2026 increased 2% from three months ended June 30, 2025. The average dollar/euro exchange rate for the current second quarter was 1.16 compared to 1.13 in the second quarter of 2025, resulting in a positive foreign exchange impact on net sales of 1% in the three months ended June 30, 2026 as compared to the prior year period. Net sales for the six months ended June 30, 2026 increased 2% as compared to thesix months ended June 30, 2025. The average dollar/euro exchange rate for the first six months of 2026 was 1.17 compared to 1.09 in the first six months of 2025, resulting in a positive foreign exchange impact on net sales of 3% in the six months ended June 30, 2026 as compared to the prior year period. The diversity of our overall brand portfolio again showed its strength as we saw strong growth from several of our larger brands which helped offset softness in other brands and geographies. The war in the Middle East, which again weighed on our results, represented a headwind of 3% in the second quarter and 2% for the first six months of the year. Excluding this effect, organic sales increased 4% in the second quarter of 2026 and 1% for the first six months of the year.

Current wording

Net sales for thethree months ended September 30, 2026 remained flat compared to thethree months ended September 30, 2025. The average dollar/euro exchange rate for the current third quarter was 1.15 compared to 1.17 in the third quarter of 2025, resulting in a negative foreign exchange impact on net sales of 0.4% in the three months ended September 30, 2026 as compared to the prior year period. Net sales for the nine months ended September 30, 2026 increased 1% as compared to thenine months ended September 30, 2025. The average dollar/euro exchange rate for the first nine months of 2026 was 1.16 compared to 1.12 in the first nine months of 2025, resulting in a positive foreign exchange impact on net sales of 2% in the nine months ended September 30, 2026 as compared to the prior year period. Sales by European based operations were especially strong, which helped to offset weaker performance by United States based operations following an exceptional period of growth in the second quarter 2026. The ongoing war in the Middle East represented a headwind of 1% and 2% in the third quarter and first nine months of 2026, respectively.

Previous wording

In thesix months ended June 30, 2026, net sales in our largest market, North America, rose 5% as compared to the prior year period, driven by continued market growth, the launch of several extensions, particularly for Coach, as well as successful marketing and advertising investments, while sales in Western Europe declined 3% due to slower consumer demand. Our sales in Asia/Pacific increased by 14% driven by brand initiatives with Coach and Montblanc and expansion of GUESS in Australia and New Zealand. Our new affiliate in Korea is off to a strong start, and after sluggish sales over the past few years, the business is growing again in the first half of 2026. Central and South America net sales increased 15% 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 7% in thesix months ended June 30, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste. The war in the Middle East has again led to a significant decline in our sales in the Middle East and Africa Region that was down 24%, weighting significantly on our overall results.

Current wording

In the nine months ended September 30, 2026, net sales in our largest market, North America, rose 4% as compared to the prior year period, driven by continued market growth, the launch of several extensions, particularly for Coach, as well as successful marketing and advertising investments. Sales in Western Europe declined 3% due to slower consumer demand, particularly in Germany and France. Our sales in Asia/Pacific increased by 12% driven by brand initiatives with Coach and Jimmy Choo and expansion of Ferragamo and GUESS. Our new affiliate in Korea is off to a strong start, and after sluggish sales over the past few years, the business is growing again in 2026. Central and South America net sales increased 12% due to the success of women’s and men’s Coach franchises and the strength of the Montblanc Legend line as well as robust growth from Jimmy Choo. Our net sales in Eastern Europe decreased 15% in the nine months ended September 30, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste. The war in the Middle East has again led to a significant decline in our sales in the Middle East and Africa Region that was down 19%, weighing significantly on our overall results.

Previous wording

The Company’s gross profit margin as a percentage of net sales was 65.5% and 65.3% for the three and six months ended June 30, 2026 as compared to 66.2% and 65.0% 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 tariff impacts which represented a net expense of $8.2 million in thesix months ended June 30, 2026 as compared to the prior year period. Furthermore, as of June 30, 2026, the company has received $8.7 million in IEEPA tariff refunds, of which $6.9 million have been recognized as a non-recurring reduction in cost of sales. Overall, the Company is expecting approximately $17.6 million in refunds.

Current wording

The Company’s gross profit margin as a percentage of net sales was 67.1% and 66.0% for the three and nine months ended September 30, 2026, as compared to 63.5% and 64.4% for the corresponding period of the prior year. The increase was the result of favorable segment, brand and channel mix as well as lower destruction costs of $9.6 million. These were partially offset by tariff impacts which represented an additional expense of $11.9 million in the nine months ended September 30, 2026 as compared to the prior year period. Furthermore, as of September 30, 2026, the company has received $17.3 million in IEEPA tariff refunds, of which $14.8 million have been recognized as a non-recurring reduction in cost of sales and $1.0 million in selling, general, and administrative expenses. Overall, the Company is not expecting any material additional refunds, however, there is still $1.4 million of unrealized tariff refunds that will mostly make their way into cost of sales in the fourth quarter.

Previous wording

For European based operations, gross profit margin as a percentage of net sales was 67.4% for the three and six months ended June 30, 2026, as compared to 68.3% and 66.9% for the corresponding period of the prior year, respectively. The decrease in the three months ended June 30, 2026 was the result of unfavorable brand and channel mix, as well as higher costs related to tariffs, partially offset by one time tariff refunds. The increase in the six months ended June 30, 2026 was the result of favorable brand and channel mix, lower destruction costs, as well as $2.7 million of IEEPA tariff refunds. These were partially offset by tariffs, which represented an additional expense of $4.5 million in the six months ended June 30, 2026 as compared to the prior year period.

Current wording

For European based operations, gross profit margin as a percentage of net sales was 70.8% and 68.7% for the three and nine months ended September 30, 2026, as compared to 66.0% and 66.6% for the corresponding period of the prior year, respectively. The increase in the nine months ended September 30, 2026, was the result of price increases, favorable brand and channel mix, lower year- over-year destruction costs of $6.1 million, as well as $9.6 million of IEEPA tariff refunds. These were partially offset by tariffs, which represented an additional expense of $7.3 million in the nine months ended September 30, 2026 as compared to the prior year period.

Previous wording

For United States based operations, gross profit margin as a percentage of net sales was 61.6% and 60.3% for the three and six months ended June 30, 2026 respectively, as compared to 60.7% and 59.7% for the corresponding period of the prior year. Tariff refunds representing $4.2 million as well as lower levels of destructions helped offset unfavorable channel and product mix impacts as well as higher ongoing tariff costs.

Current wording

For United States based operations, gross profit margin as a percentage of net sales was 58.2% and 59.5% for the three and nine months ended September 30, 2026 respectively, as compared to 58.1% and 59.0% for the corresponding period of the prior year. Tariff refunds representing $5.2 million as well as lower than expected destructions helped offset unfavorable channel and product mix impacts as well as higher ongoing tariff costs.

Previous wording

The Company’s selling, general and administrative expenses as a percentage of net sales were 51.2% and 47.4% for the three andsix months ended June 30, 2026 as compared to 48.5% and 45.0% for the three andsix months ended June 30, 2025. The increase in selling, general and administrative expenses as a percentage of net sales in both the quarter and six month period resulted from marketing investments in brands, 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 wording

The Company’s selling, general and administrative expenses as a percentage of net sales were 39.7% and 44.4% for the three and nine months ended September 30, 2026 as compared to 38.2% and 42.4% for the three and nine months ended September 30, 2025. The increase in selling, general and administrative expenses as a percentage of net sales for the quarter and for the first nine month period resulted from higher employee related costs, unfavorable royalty brand mix impacts and higher logistics costs due to supply chain transitions and higher costs of transportation. For the nine-month period, the increase was also driven by higher marketing investments.

Previous wording

For European based operations, selling, general and administrative expenses increased 7.5% andincreased 8.1% for the three andsix months ended June 30, 2026, respectively as compared to the corresponding period of the prior year, and represented 53.9% and 47.4% of net sales for the three andsix months ended June 30, 2026, as compared to 48.2% and 43.4% for the three andsix months ended June 30, 2025. The increase in expenses for both periods was largely driven by higher marketing expenses due to the timing of product launches in the second quarter of 2026 as well as investments behind the brands. Royalty costs also grew ahead of sales driven by unfavorable brand mix. Employee related costs expanded as we are building up our Korean subsidiary, and we also saw higher logistics costs related to increased warehouse fees and supply chain transitions. For United States based operations, selling, general and administrative expenses increased 8.6% andincreased 5.6% for the three andsix months ended June 30, 2026, respectively, as compared to the corresponding period of the prior year, below sales increases, and represented 44.2% and 46.0% of net sales for the three andsix months ended June 30, 2026, as compared to 48.0% and 47.8% for the three andsix months ended June 30, 2025. Despite higher selling, general and administrative investments overall, the decrease as a percentage of net sales in the three and six month periods were driven by productivity gains behind the accelerated sales growth, which were partially offset by unfavorable brand mix on royalty expenses.

Current wording

For European based operations, selling, general and administrative expenses increased 5.4% and 7.2% for the three and nine months ended September 30, 2026, respectively as compared to the corresponding period of the prior year, and represented 37.8% and 43.7% of net sales for the three and nine months ended September 30, 2026, as compared to 37.2% and 41.1% for the three and nine months ended September 30, 2025. The increase in expenses for both periods was largely driven by Royalty costs growing ahead of sales due to unfavorable brand mix. Employee related costs expanded as we are building up our Korean subsidiary, and we also saw higher logistics costs related to supply chain transitions and rising fuel costs. Marketing expenses also grew ahead of sales for the nine month period driven by product launch timing. For United States based operations, selling, general and administrative expenses were flat in the quarter and increased 3.6% for nine months ended September 30, 2026, and represented 42.9% and 44.8% of net sales for the three and nine months ended September 30, 2026, as compared to 39.7% and 44.4% for the three and nine months ended September 30, 2025. SG&A as a percentage is up in the third quarter, driven by lower fixed cost absorption due to lower sales. SG&A was also impacted by unfavorable brand mix on royalties and higher logistics costs due to supply chain transitions and rising fuel costs.

Previous wording

Promotion and advertising included in selling, general and administrative expenses aggregated $77.2 million and $128.8 million for the three andsix months ended June 30, 2026, respectively, as compared to $68.8 million and $120.4 million for the corresponding period of the prior year and represented 22.6% and 18.8% of net sales for the three andsix months ended June 30, 2026, respectively, as compared to 20.6% and 17.9% 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, new brands and to build brand awareness. We believe that our promotion and advertising efforts have a beneficial effect on sales, and as such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands. We are reinvesting the tariff refunds in order to protect our top line growth and set ourselves up for a successful 2027, as such, we anticipate that on a full year basis, promotion and advertising expenditures will approach our long term target of approximately 21% of net sales.

Current wording

Promotion and advertising included in selling, general and administrative expenses aggregated $64.9 million and $193.7 million for the three and nine months ended September 30, 2026, respectively, as compared to $65.5 million and $185.9 million for the corresponding period of the prior year and represented 15.1% and 17.4% of net sales for the three and nine months ended September 30, 2026, respectively, as compared to 15.3% and 16.9% 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, new brands and to build brand awareness. We believe that our promotion and advertising efforts have a beneficial effect on sales, and as such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands. We are reinvesting the tariff refunds in order to protect our top line growth and set ourselves up for a successful 2027, as such, we anticipate that on a full year basis, promotion and advertising expenditures will approach our long-term target of approximately 21% of net sales.

Previous wording

Royalty expense included in selling, general and administrative expenses aggregated $30.9 million and $62.8 million for the three andsix months ended June 30, 2026, respectively, as compared to $27.7 million and $55.8 million for the corresponding period of the prior year. Royalty expense represented 9.1% and 9.2% of net sales for the three andsix months ended June 30, 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.

Current wording

Royalty expense included in selling, general and administrative expenses aggregated $36.7 million and $99.5 million for the three and nine months ended September 30, 2026, respectively, as compared to $34.7 million and $90.5 million for the corresponding period of the prior year. Royalty expense represented 8.6% and 8.9% of net sales for the three and nine months ended September 30, 2026 as compared to 8.1% and 8.2% 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 14.4% and 17.9% for the three andsix months ended June 30, 2026, respectively, as compared to 17.7% and 20.0% 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 27.4% and 21.6% for the three andnine months ended September 30, 2026, respectively, as compared to 25.3% and 22.0% for the corresponding period of the prior year.

Previous wording

Overall, other income and expense for the six months ended June 30, 2026, was a gain of $0.4 million as compared to a loss of $6.7 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 $0.2 million in the first half of 2026 compared to a loss of $2.4 million in the first half of 2025. Additionally, we had a gain on interest income related to cash and cash equivalents and short-term investments of $4.4 million and a reduction in interest expense on borrowings of $0.5 million.

Current wording

Overall, other income and expense for the nine months ended September 30, 2026, was effectively nilas compared to a loss of $7.7 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 gain of $0.2 million in the first nine months of 2026 compared to a loss of $4.6 million in the first nine months of 2025. The improvement also reflected a $3.1 million increase in interest income earned on cash and cash equivalents and short-term investments due to one-time loss of $2.5 million in 2025. Additionally, interest expense on borrowings decreased by $1.1 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 $142.8 million and $176.0 million as of June 30, 2026 and December 31, 2025, respectively. Interest expense was $2.6 million in thesix months ended June 30, 2026 compared to $3.1 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 and our share repurchase program. Long-term debt including current maturities aggregated $190.5 million and $176.0 million as of September 30, 2026 and December 31, 2025, respectively. Interest expense was $4.1 million in thenine months ended September 30, 2026 compared to $5.1 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 six months ended June 30, 2026 and 2025.

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 and nine months ended September 30, 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 $3.0 million in thesix months ended June 30, 2026 compared to $2.6 million in the prior year period. Additionally, we recognized gains on marketable equity securities of $0.1 million in thesix months ended June 30, 2026 compared a loss of $3.4 million in thesix months ended June 30, 2025.

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 $4.6 million in thenine months ended September 30, 2026 compared to $4.4 million in the prior year period. Additionally, results benefited from $2.3 million decrease in losses on marketable equity securities, from $2.5 million in the first nine months of 2025 compared to $0.2 million loss in the first nine months of 2026.

Previous wording

Our consolidated effective tax rate was 24.2% and 24.3% for the six months ended June 30, 2026 and 2025, respectively. The Company's effective income tax rate is primarily affected by the geographic mix of earnings among jurisdictions with different statutory tax rates, the benefit associated with the Foreign-Derived Intangible Income ("FDII") deduction, excess tax benefits related to stock-based compensation, state income taxes, and other permanent differences recognized during the period. These items collectively result in the Company's effective tax rate differing from the U.S. federal statutory rate. The company does not have a jurisdictional tax forecast but uses a forecasted tax rate by segment to validate the quarterly effective tax rate. The effective tax rate for our European based operations remained flat at 25.4% for both the six months ended June 30, 2026 and 2025. The effective tax rate for United States based operations was 20.4% for the six months ended June 30, 2026, as compared to 18.8% 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 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. We also did not have any material discreet tax items this quarter nor significant changes in uncertain tax positions, valuation allowances, tax examinations, or enacted law changes. The Company was notified in June 2026 by the Internal Revenue Service that the Company will undergo an audit for the 2024 tax year.

Current wording

Our consolidated effective tax rate was 24.6% and 23.5% for thenine months ended September 30, 2026 and 2025, respectively. The Company's effective income tax rate is primarily affected by the geographic mix of earnings among jurisdictions with different statutory tax rates, the benefit associated with the Foreign-Derived Intangible Income ("FDII") deduction, excess tax benefits related to stock-based compensation, state income taxes, and other permanent differences recognized during the period. These items collectively result in the Company's effective tax rate differing from the U.S. federal statutory rate. The Company does not have a jurisdictional tax forecast but uses a forecasted tax rate by segment to validate the quarterly effective tax rate. The effective tax rate for our European based operations was 25.5% and 24.4% for thenine months ended September 30, 2026 and 2025, respectively. The increase in taxes resulted from a $3 million favorable outcome to our mutual agreement procedure between the French and United States tax authorities in 2025 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 20.3% for thenine months ended September 30, 2026, as compared to 20.0% 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. We also did not have any material discreet tax items this quarter nor significant changes in uncertain tax positions, valuation allowances, tax examinations, or enacted law changes. The Company was notified in June 2026 by the Internal Revenue Service that the Company will undergo an audit for the 2024 tax year. As of September 30, 2026, the examination was ongoing. In addition, the Company’s Italian subsidiary is currently undergoing an examination by the Italian tax authorities for the 2023 tax year.

Previous wording

Net income attributable to Interparfums, Inc. was $30.5 million and $73.9 million for thethree and six months ended June 30, 2026, respectively, as compared to $32.0 million and $74.5 million for the corresponding period of the prior year.

Current wording

Net income attributable to Interparfums, Inc. was $68.2 million and $142.1 million for thethree and nine months ended September 30, 2026, respectively, as compared to $65.8 million and $140.3 million for the corresponding period of the prior year.

Previous wording

Net income attributable to European based operations was $22.8 million and $72.6 million for thethree and six months ended June 30, 2026, as compared to $32.7 million and $80.9 million for the corresponding period of the prior year, while net income attributable to United States based operations increased to $15.5 million and $23.9 million for the three and six months ended June 30, 2026, as compared to $9.6 million and $18.2 million for 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.

Current wording

Net income attributable to European based operations increased to $75.2 million and $147.9 million for thethree and nine months ended September 30, 2026, as compared to $63.7 million and $144.6 million for the corresponding period of the prior year, while net income attributable to United States based operations was $15.5 million and $39.4 million for the three and nine months ended September 30, 2026, as compared to $20.8 million and $39.0 million for 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 thesix months ended June 30, 2026 and 2025. Net profit margins attributable to Interparfums, Inc. for the six months ended June 30, 2026 and 2025 aggregated 10.8% and 11.1%, respectively.

Current wording

The noncontrolling interest arises from our 74% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company, as 26% 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 27% and 28% of European based operations net income for both thenine months ended September 30, 2026 and 2025, respectively. Net profit margins attributable to Interparfums, Inc. for both the nine months ended September 30, 2026 and 2025 aggregated to 12.7%.

Previous wording

Our conservative financial tradition has enabled us to amass significant cash balances. As of June 30, 2026, we had $211.3 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 September 30, 2026, we had $240.2 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 June 30, 2026, working capital aggregated $664 million. Approximately 74% of the Company’s total assets are held by European based operations, and approximately $280 million of trademarks, licenses and other intangible assets are also held by European based operations.

Current wording

As of September 30, 2026, working capital aggregated $731 million. Approximately 75% of the Company’s total assets are held by European based operations, and approximately $278 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 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 was operating the Annick 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.

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 September 2026, we extended the Roberto Cavalli license for 20 years, extending the license through December 31, 2046. In March 2026, we entered into a 10-year license agreement with PUMA running through December 31, 2037. 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 December 2025, we extended the GUESS license for an additional 15 years, extending the license through December 31, 2048. In July 2025, our majority owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036. The first launch under our Longchamp license is expected in 2027. In June 2025, our majority owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which was operating the Annick 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 $45.7 million for thesix months ended June 30, 2026 compared to $4.5 million for thesix months ended June 30, 2025. For thesix months ended June 30, 2026, working capital items used $61.7 million in cash from operating activities, as compared to $108.9 million in the 2025 period. From a cash flow perspective, accounts receivables are down 3% from year end 2025. The balance is reasonable based on 2026 sales levels and seasonality of the business. Days' sales outstanding decreased slightly to 73 days, from 74 days in the corresponding period of the prior year, driven by changes in our channel mix. We continue to see strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of June 30, 2026 increased 9% from year end 2025 driven by the seasonality of the business. Despite foreign exchange headwinds, our inventories are down significantly year over year with $376 million at June 30, 2026 compared to $425 million at June 30, 2025, translating to a reduction of 34 days inventory on hand as we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods. Operating cash flow also benefited in the six months ended June 30 2026 from the receipt of $8.7 million of IEEPA tariff refunds. The Company has paid an additional $8.9 million of IEEPA tariffs which were not yet refunded at June 30, 2026, of which $8 million was received in July 2026.

Current wording

Cash provided by operating activities aggregated $102.3 million for thenine months ended September 30, 2026 compared to $68.4 million for thenine months ended September 30, 2025. For thenine months ended September 30, 2026, working capital items used $101.3 million in cash from operating activities, as compared to $133.9 million in the 2025 period. From a cash flow perspective, accounts receivable are up 20% from year end 2025. The balance is reasonable based on 2026 sales levels and seasonality of the business. Days' sales outstanding were up slightly to 90 days for the nine months ended September 30, 2026 compared to 89 days for the nine months ended September 30, 2025. We continue to see 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, 2026 increased 10% from year end 2025 driven by the seasonality of the business. Our inventories are down year over year with $376 million at September 30, 2026 compared to $388 million at September 30, 2025, translating to a reduction of 16 days inventory on hand as we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods. Operating cash flow also benefited in the nine months ended September 30 2026 from the receipt of $17.3 million of IEEPA tariff refunds received, as well as $0.6 million of related interest.

Previous wording

Cash flows used in financing activities in 2026 predominately reflect repayments of debt and payments of dividends to stockholders.

Current wording

Cash flows used in financing activities in 2026 predominately reflect net proceeds of debt, purchase of subsidiary shares from noncontrolling interest and payments of dividends to stockholders.

Previous wording

Our short-term financing requirements are expected to be met by available cash on hand at June 30, 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 $9.1 million (€8 million) in credit lines provided by a consortium of international financial institutions. There was $2.8 million of short-term borrowings outstanding pursuant to these facilities as of June 30, 2026 and $9.4 million outstanding as of June 30, 2025.

Current wording

Our short-term financing requirements are expected to be met by available cash on hand at September 30, 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 $9.1 million (€8 million) in credit lines provided by a consortium of international financial institutions. There was $4.0 million of short-term borrowings outstanding pursuant to these facilities as of September 30, 2026 and $9.4 million outstanding as of September 30, 2025.

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 thesix months ended June 30, 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.

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 thenine months ended September 30, 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.