Interparfums Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 2% to $345 million: Net sales were $345 million against $339 million, up 2% reported. The average dollar/euro rate of 1.17 compared with 1.05 added a 4.6% foreign exchange impact. Source
• Diluted EPS rose to $1.35: Net income attributable to Interparfums was $43 million, or $1.35 per diluted share, up 2% from $42 million, or $1.32 per diluted share. Source
• Eastern Europe sales declined: Eastern Europe declined on operational difficulties in certain markets that hit Lanvin and Lacoste disproportionately. Source
• Coach grew 30%: Coach led brand growth, with Montblanc up 14%, GUESS up 11%, and Roberto Cavalli up 32%. Source
• Lacoste sales fell 12%: Lacoste declined 12% against a prior-year base that grew 30% on innovation, along with weaker market conditions, especially in Eastern Europe. Source
• Gross margin rose to 65.1%: Consolidated gross margin was 65.1%, up from 63.7% in the prior period. Source
• SG&A rose to 43.6% of sales: SG&A as a share of sales rose from 41.6%, mainly on royalty costs growing ahead of sales and higher logistics costs. Source
• Operating cash flow turned positive: Operating cash flow was positive, compared with a $7.4 million outflow in the 2025 first quarter. Source

“We remain confident in our ability to navigate short-term volatility and deliver sustainable, long-term results, while upholding our commitment to our customers, brand partners, and consumers.”

Jean Madar, Chairman & Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Full-year 2026 sales and EPS figures maintained in this release. Source
• New: MSCI raised the company's ESG rating to BBB, its third consecutive increase. Source

Results and growth drivers

• Net sales rose 2% to $345 million: Net sales were $345 million against $339 million, up 2% reported. The average dollar/euro rate of 1.17 compared with 1.05 added a 4.6% foreign exchange impact. Source
• Operating margin fell to 21.5%: Operating income was $74 million, a 21.5% margin, against $75 million and a 22.2% margin in the 2025 first quarter. Source
• Diluted EPS rose to $1.35: Net income attributable to Interparfums was $43 million, or $1.35 per diluted share, up 2% from $42 million, or $1.32 per diluted share. Source
• Other income swung to a gain: Other income and expenses was a gain of $1.1 million, compared with a $1.7 million loss in the prior year period. Source
• Tax rate essentially unchanged: The effective tax rate was 24.6%, compared with 24.5% in the prior year period. Source

Segments and regions

• European operations sales rose 2%: European based sales were $252 million and United States based sales were $96 million, each up 2% reported. European sales included a 5.5% currency benefit; United States sales a 2.5% benefit. Source
• North America sales up 7%: North America, the largest market, rose 7%, which management tied to market growth and several extensions, particularly for Coach. Source
• Central and South America up 23%: Sales in Central and South America rose 23%, driven by the women's and men's Coach franchises and the Montblanc Legend line. Source
• Western Europe flat on demand: Western Europe sales were flat, which management attributed to slow consumer demand. Source
• Eastern Europe sales declined: Eastern Europe declined on operational difficulties in certain markets that hit Lanvin and Lacoste disproportionately. Source
• Middle East and Africa declined: Sales in the Middle East and Africa fell, which management attributed to the intensification of regional wars and conflicts. Source

“Our cautious optimism for the balance of 2026 reflects the confidence in the underlying strength of our business model, the broadening appeal of our current brand portfolio, and the actions we are taking to mitigate macro pressures.”

Michel Atwood, Chief Financial Officer

Brands and launches

• Coach grew 30%: Coach led brand growth, with Montblanc up 14%, GUESS up 11%, and Roberto Cavalli up 32%. Source
• Lacoste sales fell 12%: Lacoste declined 12% against a prior-year base that grew 30% on innovation, along with weaker market conditions, especially in Eastern Europe. Source
• Jimmy Choo down 4% overall: Jimmy Choo fragrance grew in the United States, but overall brand sales fell 4% on a downturn in certain European and Asian markets. Source
• Be Delicious Core rebounded 16%: Donna Karan/DKNY sales declined 3% on a strong prior base, while Be Delicious Core sales rose 16%. Source
• Extensions launched across brands: Extensions launched in 2026 include Jimmy Choo Man, Coach Cherry and Platinum, Montblanc Legend Elixir, GUESS Iconic Sublime, Lacoste Original Aqua, DKNY Cashmere and Rose Absolu, and Roberto Cavalli Uomo Verde Assoluto. Source

Costs, margins and tariffs

• Gross margin rose to 65.1%: Consolidated gross margin was 65.1%, up from 63.7% in the prior period. Source
• Mix and lower destruction costs: Management attributed the margin gain to segment, brand and channel mix and lower than expected destruction costs, partly offset by tariffs. Source
• SG&A rose to 43.6% of sales: SG&A as a share of sales rose from 41.6%, mainly on royalty costs growing ahead of sales and higher logistics costs. Source
• Advertising spend held at 15%: A&P expense was about $52 million, approximately 15% of net sales in both periods. Source

Demand and market conditions

• Portfolio results were mixed: Management said the United States and European operations each grew year over year, despite mixed results across the portfolio. Source
• Fragrance market seen as resilient: Management said it is encouraged by the resilience of the fragrance market and its underlying fundamentals. Source
• Market normalizing after strong growth: Management cited efforts to offset weakness in select regions, tariffs, and a market normalizing after years of significant global growth. Source

Cash, capital and returns

• Cash and working capital reported: Cash, cash equivalents and short-term investments were $237 million at March 31, 2026, with working capital of $692 million. Source
• Operating cash flow turned positive: Operating cash flow was positive, compared with a $7.4 million outflow in the 2025 first quarter. Source
• Inventory days cut by 17: Inventory days on hand fell by 17 days to 259 days compared with the prior year period. Source
• Quarterly dividend of $0.80: The $0.80 regular quarterly cash dividend will be paid June 30, 2026 to holders of record on June 15, 2026. Long-term debt was about $157 million. Source

Strategy, investment and ESG

• Investing ahead of 2027 introductions: The company continues to invest in its current brands and ahead of new introductions planned for 2027 and beyond. Source
• MSCI rating raised to BBB: MSCI raised the company's ESG rating to BBB, its third consecutive increase, driven by measures on financially material environmental and social risks. Source
• Goutal and Off-White added: Goutal and Off-White joined the fragrance portfolio in 2026. Source

Coming up, as management said on 5 May 2026

• More extensions this year: Management expects additional fragrance extensions across the portfolio during 2026, anchored by the named brands and Ferragamo. Source
• Blockbuster launches planned for 2027: Management is preparing new blockbuster launches for 2027. Source

Risks management discussed

• External: Management is monitoring the war in the Middle East, plus inflation effects on supplier pricing and consumer behavior. Source
• Regulatory: Management is addressing tariffs in its cost structure and monitoring possible tariff refunds this year. Source
• Operational: Operational difficulties in certain Eastern European markets disproportionately affected Lanvin and Lacoste sales. Source
• Financial: Royalty costs grew ahead of sales because of unfavorable brand mix, pressuring SG&A as a share of sales. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.