Interparfums Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 2 kept. The quarter’s numbers.

Key takeaways

Quarter sales flat, nine-month up 1%: Third-quarter net sales were $430 million, flat on both reported and organic bases. Nine-month sales rose 1% to $1.1 billion. Source
Western, Eastern Europe and Middle East fell: Western Europe fell 3%, Eastern Europe 15% (Lanvin and Lacoste hit by operational challenges) and Middle East and Africa 19% for the nine months. Source
Gross margin rose on mix and costs: Third-quarter gross margin was 67.1%, up 360 basis points, on favorable mix and lower destruction costs, partly offset by tariffs. Source
Tariff refunds boosted gross margin: Gross margin included one-time IEEPA tariff refunds of $7.9 million in the quarter and $14.8 million for the nine months. Source
SG&A rose on brand marketing and royalties: SG&A rose to 39.7% of sales in the quarter from 38.2%, on brand marketing, royalty costs and logistics. Source
Cash and working capital at quarter-end: Cash, cash equivalents and short-term investments totaled $240 million, with working capital of $731 million at September 30. Source
Operating cash flow rose to 56% of net income: Nine-month operating cash flow was $102 million, or 56% of net income, against 38% in the prior year. Source
Interparfums SA stake raised to 74.3%: About $50 million spent in the quarter lifted ownership of the Paris subsidiary from about 72.5% to 74.3%. Source

“Our results for the third quarter and nine months reflect multiple drivers, primary among them our global portfolio which allows us to support overall performance”
Jean Madar, Chairman & Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Diluted EPS Source	full year 2026	$4.85	Kept
IEEPA tariff refunds Source	fourth quarter of 2026	$1.4 million remaining, majority expected in fourth quarter
Advertising and promotional expense Source	full year 2026	approach approximately 21% of net sales
Quarterly cash dividend Source	payable December 31, 2026	$0.80 per share	Kept

Results and growth drivers

Quarter sales flat, nine-month up 1%: Third-quarter net sales were $430 million, flat on both reported and organic bases. Nine-month sales rose 1% to $1.1 billion. Source
Quarterly net income and EPS up: Third-quarter net income attributable to Interparfums rose 4% to $68 million, and diluted EPS was $2.13 against $2.05. Source
Operating income rose in quarter: Third-quarter operating income was $118 million, up 9%. Nine-month operating income was $241 million, down 1%. Source
Nine-month net income and EPS higher: Nine-month net income rose 1% to $142 million, and diluted EPS rose 2% to $4.43 from $4.36. Source

Regions and sales by market

North America led growth: North America, the largest market, rose 4% on market growth, Coach extensions and marketing investment. Source
Asia/Pacific and Central-South America rose 12%: Asia/Pacific rose on Coach, Jimmy Choo, Ferragamo, GUESS and a new Korean affiliate; Central and South America rose on Coach and Montblanc. Source
Western, Eastern Europe and Middle East fell: Western Europe fell 3%, Eastern Europe 15% (Lanvin and Lacoste hit by operational challenges) and Middle East and Africa 19% for the nine months. Source
Portfolio mix offset weaker regions: Management said growth across key brands and markets showed the resilience of the business model. Source

“Through the first nine months of the year, we delivered measured top-line growth, expanded gross margins, and generated higher net income while investing in the success of our brands”
Michel Atwood, Chief Financial Officer

Brands and product launches

Coach, Jimmy Choo and Montblanc grew: For European-managed brands, Coach rose 15%, Jimmy Choo 5% and Montblanc 8% in the first nine months. Source
GUESS and DKNY grew: For US-managed brands, GUESS rose 7%, Donna Karan/DKNY 4% and Roberto Cavalli 6% in the first nine months. Source
Lacoste back to growth in quarter: Lacoste sales fell 9% year to date but rose 4% in the third quarter, after the first-half decline. Source
Ferragamo down on European conditions: Ferragamo sales fell 2% for the nine months, reflecting market conditions in Europe, the brand’s core region. Source
New line extensions launched in quarter: Third-quarter extensions included Jimmy Choo I Want Choo Midnight, Montblanc Explorer Infinite, Lacoste Original Intense and DKNY Women Skyline. Source

Gross margin, costs and tariffs

Gross margin rose on mix and costs: Third-quarter gross margin was 67.1%, up 360 basis points, on favorable mix and lower destruction costs, partly offset by tariffs. Source
Tariff refunds boosted gross margin: Gross margin included one-time IEEPA tariff refunds of $7.9 million in the quarter and $14.8 million for the nine months. Source
SG&A rose on brand marketing and royalties: SG&A rose to 39.7% of sales in the quarter from 38.2%, on brand marketing, royalty costs and logistics. Source
Operating margin up in quarter, down nine months: Third-quarter operating margin was 27.4%, up 210 basis points; nine-month operating margin was 21.6%, down 40 basis points. Source
Tax rate rose to 24.6%: Nine-month effective tax rate was 24.6% against 23.5%; the prior year was helped by a $2 million one-time gain. Source

“We believe that our emphasis on maximizing productivity alongside targeted marketing investments will support our ability to drive sustained, profitable growth in 2027 and 2028.”
Jean Madar, Chairman & Chief Executive Officer

Cash, inventory and balance sheet

Cash and working capital at quarter-end: Cash, cash equivalents and short-term investments totaled $240 million, with working capital of $731 million at September 30. Source
Operating cash flow rose to 56% of net income: Nine-month operating cash flow was $102 million, or 56% of net income, against 38% in the prior year. Source
Inventory down 3%: Total inventory fell 3% from the prior year, a reduction of 16 days on hand; management is working to increase conversion of raw materials into finished goods. Source
Long-term debt about $147 million: Long-term debt, excluding current maturities, was approximately $147 million at September 30. Source

Share repurchases and Interparfums SA

Buyback program covers IPAR or SA shares: The Board authorized in July 2026 a repurchase program for Interparfums shares, Interparfums SA shares, or both. Source
Interparfums SA stake raised to 74.3%: About $50 million spent in the quarter lifted ownership of the Paris subsidiary from about 72.5% to 74.3%. Source
Equity-transaction accounting, control retained: The Company continues to control and consolidate Interparfums SA, with the purchases accounted for as equity transactions. Source

Strategy, launches and investment

Extension-driven launch strategy: Management described the launch approach as building momentum into 2027, supported by extensions and a broad pipeline. Source
Flexibility to acquire brands: Management said cash balances and capital allocation give flexibility to acquire brands, proprietary or licensed. Source
A&P spend 15.1% of sales: A&P totaled $65 million in the quarter, 15.1% of sales, and $194 million for nine months, 17.4% of sales. Source

Coming up, as management said on 4 November 2026

Initial 2027 guidance release: Initial full-year 2027 guidance is to be released after the market close. Source
Extensions and new brand debuts: Additional extensions are due before year-end 2026, plus fragrance debuts from Longchamp, Off-White and PUMA, with no dates given. Source
Blockbuster releases planned: Management said it is preparing a series of blockbuster releases across the brand portfolio, with no dates given. Source

Risks management discussed

External: The war in the Middle East reduced sales growth by 1 point in the third quarter and 2 points for the nine months. Source
Operational: Operational challenges in Eastern Europe disproportionately affected Lanvin and Lacoste, with the region down 15% for the nine months. Source
Demand: Consumer demand softened in Western Europe, where sales were down 3% for the nine months. Source
Operational: Royalty costs grew faster than sales because of an unfavorable brand mix, adding to selling costs. Source
Regulatory: Higher tariff expenses partly offset the gross margin gains, according to management. Source

Earlier plans management reported on

Not stated: Management said the tariff refunds are being reinvested in United States marketing, as shared in the prior quarter. Source
Not stated: Full-year 2026 advertising and promotional spend is expected to approach the long-term target of about 21% of net sales. Source

Other quarters

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.

As filed with the SEC

Open the filing on EDGAR

INTERPARFUMS, INC. REPORTS 2026 THIRD QUARTER AND NINE-MONTH RESULTS;

RAISES FULL YEAR SALES GUIDANCE AND REAFFIRMS EARNINGS OUTLOOK

Third Quarter Net Sales of $430 Million with Diluted EPS of $2.13; Nine-Month Sales Increased to $1.1 Billion with Diluted EPS of $4.43

Quarterly Cash Dividend of $0.80 Per Share to be Paid on December 31, 2026

New York, New York, November 4, 2026, Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today reported results for the third quarter and nine months ended September 30, 2026.

Financial Highlights:($ in millions, except per share amounts)	Three Months Ended September 30,			Nine Months Ended September 30,
2026	2025	% Change	2026	2025	% Change
Net Sales	$430	$430	flat	$1,115	$1,102	+1%
Gross Margin	67.1%	63.5%	+360 bps	66.0%	64.4%	+160 bps
Operating Income	$118	$109	+9%	$241	$243	(1%)
Operating Margin	27.4%	25.3%	+210 bps	21.6%	22.0%	(40) bps
Net Income attributable to Interparfums, Inc.	$68	$66	+4%	$142	$140	+1%
Diluted EPS	$2.13	$2.05	+4%	$4.43	$4.36	+2%
The average dollar/euro exchange rate for the 2026 third quarter was 1.15 compared to 1.17 in the 2025 third quarter, leading to a 0.4% foreign exchange loss. For the first nine months, the average dollar/euro exchange rate was 1.16 compared to 1.12 in the first nine months of 2025, leading to a 1.5% foreign exchange gain.
Data may not foot due to rounding

Operational Commentary

Jean Madar, Chairman & Chief Executive Officer of Interparfums, stated, “Our results for the third quarter and nine months reflect multiple drivers, primary among them our global portfolio which allows us to support overall performance by capturing opportunities where consumer demand remains healthy while simultaneously mitigating the effect of challenging conditions in certain of our markets. The hard work of our team is driving meaningful progress across the Company through key operational and financial initiatives, as well as brand innovation and investment. These activities are strengthening our execution and positioning us for a strong finish to 2026 with continued optimism for 2027and 2028, as we prepare for a series of blockbuster releases across our brand portfolio.

“Growth across key brands and markets in the first nine months of 2026 demonstrated the resilience of our business model, as gains in North America, Asia/Pacific and Central and South America offset softer demand and operational and geopolitical challenges in other regions, including Eastern Europe and the Middle East. Sales in North America, our largest market, rose 4%, driven by continued market growth, the launch of several extensions, particularly for Coach, as well as successful marketing and advertising investments. Asia/Pacific sales increased 12% primarily due to brand initiatives with Coach and Jimmy Choo, the expansion of Ferragamo and GUESS, and continued success of our new affiliate in Korea that opened in late 2025. Central and South America net sales increased 12% thanks to the success of women’s and men’s Coach franchises, as well as the strength of the Montblanc Legend line and robust growth from Jimmy Choo.

“Growth through the first nine months of 2026 was partially offset by declines of 3% in Western Europe amid softer consumer demand, 15% in Eastern Europe due to operational challenges that disproportionately affected Lanvin and Lacoste, and 19% in the Middle East and Africa, primarily reflecting the ongoing war in the Middle East.

“By brand, year to date sales grew across several of our key franchises and geographies. For brands managed by our European based operations, Coach increased 15%, Jimmy Choo rose 5%, and Montblanc grew 8%. While Lacoste sales declined 9% year to date, the brand returned to growth in the third quarter, rising 4%, after a challenging first half that reflected a strong prior year comparison due to robust innovation and softer conditions in Eastern Europe. For brands managed by our United States based operations, GUESS grew 7%, Donna Karan/DKNY rose 4%, and Roberto Cavalli grew 6%. Ferragamo sales declined 2%, reflecting challenging market conditions in Europe, which is the core region for the brand.”

Continued Portfolio-Wide Innovation and Expansion

Mr. Madar continued, “We have continued to scale our brand reach and capture new audiences through line extensions across our portfolio. During the 2026 third quarter, these included: Jimmy Choo, I Want Choo Midnight for women; Montblanc, Explorer Infinite for men; Lacoste, Original Intense for women; and DKNY, Women Skyline. Our extension-driven launch strategy is building momentum into 2027, with additional extensions due before year-end 2026, a diverse pipeline of introductions from our core brands, and fragrance debuts from our newest brands Longchamp, Off-White and PUMA.”

Closing Remarks

Mr. Madar concluded, “Our execution throughout this year highlights the resilience of our premier fragrance portfolio as we successfully manage evolving market dynamics. By keeping our brand partners, retailers, and global consumers at the heart of our operations, we continue to capture meaningful global demand. We believe that our emphasis on maximizing productivity alongside targeted marketing investments will support our ability to drive sustained, profitable growth in 2027 and 2028.”

Financial Commentary

Michel Atwood, Chief Financial Officer of Interparfums, noted, “Through the first nine months of the year, we delivered measured top-line growth, expanded gross margins, and generated higher net income while investing in the success of our brands and driving further improvements in cash conversion and inventory efficiency. Our disciplined cash management and capital allocation strategy has enabled us to amass significant cash balances, positioning the Company to continue returning capital to shareholders and providing the flexibility to potentially acquire one or more brands, either on a proprietary basis or as a licensee should the opportunity materialize.”

Consolidated sales growth in the third quarter was flat on a reported and organic basis. Sales rose 1% for the first nine months of 2026, reflecting organic decline of 1% offset by positive impacts from new brands and favorable foreign exchange dynamics. The ongoing war in the Middle East represented a headwind of 1% in the third quarter and 2% for the first nine months of this year.

Consolidated gross margin in the third quarter and first nine months of 2026 expanded by 360- and 160-basis points to 67.1% and 66.0%, respectively. These increases were the result of favorable segment, brand and channel mix as well as lower than expected destruction costs driven by our inventory efficiency programs, which were partially offset by higher tariff expenses. Gross margin also benefited from one-time IEEPA tariff refunds of $7.9 million in the third quarter of 2026 and $14.8 million for the first nine months of 2026.

Selling, General and Administrative expenses (“SG&A”) as a percentage of sales rose to 39.7% and 44.4% in the third quarter and first nine months of 2026, respectively, compared to 38.2% and 42.4% during the prior year periods. The increases were primarily due to higher brand marketing investments, royalty costs growing ahead of sales driven by an unfavorable brand mix, and higher logistics costs related to supply chain transitions and channel mix.

Advertising and promotional (“A&P”) expenses in the third quarter and first nine months of 2026 totaled $65 million and $194 million, representing 15.1% and 17.4% of sales, compared to 15.3% and 16.9% of sales during the respective prior year periods. As shared last quarter, we are reinvesting the tariff refunds to support the strong momentum we are seeing in the United States market, drive our top-line growth and position the Company for a successful 2027; as such, we anticipate our full year 2026 A&P expenditures will approach our long-term target of approximately 21% of net sales.

The metrics mentioned resulted in the 2026 third quarter operating margin expanding 210-basis points to 27.4% from 25.3%, although operating margin year to date was 21.6% compared to 22.0% in the prior year period.

Our consolidated effective tax rate was 24.6% for the nine months ended September 30, 2026 compared to 23.5% in the prior year period, which was helped by a $2 million one-time gain in the prior period.

Third quarter net income rose 4% to $68 million, or $2.13 per diluted share, compared to $66 million or $2.05 per share in the prior year period. Net income for the first nine months of 2026 increased 1% to $142 million from $140 million, and diluted EPS rose 2% to $4.43 compared to $4.36 a year ago. As a percentage of sales, net income expanded to 15.9% in Q3 2026 and remained stable at 12.7% for the first nine months of 2026.

Strengthened Financial Position, Cash Conversion, and Efficiency

Mr. Atwood continued, “As of September 30, 2026, we reported $240 million in cash, cash equivalents and short-term investments, and working capital of $731 million. We continued to enhance our cash conversion in the first nine months of 2026, with operating cash flow reaching $102 million, or 56% of net income, up from $68 million, or 38% of net income, in the prior year period. We reduced total inventory levels by 3% compared to the prior year period, 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. Long-term debt, excluding current maturities, approximated $147 million.”

Share Repurchase

In July 2026, the Board of Directors of our Company authorized a share repurchase program to purchase outstanding shares in either our Company (IPAR) or its majority owned Paris based subsidiary, Interparfums SA, whose shares trade on the Euronext under the symbol “ITP,” or both.

During the third quarter of 2026, the Company invested approximately $50 million to acquire additional shares of Interparfums SA under this program, increasing its ownership interest from approximately 72.5% to 74.3%. The Company continues to control and consolidate Interparfums SA, and the purchases and related costs were accounted for as equity transactions.

Increases 2026 Sales Guidance, Maintains EPS Outlook

The Company is increasing its 2026 sales outlook from $1.48 billion to $1.49 billion and maintaining EPS of $4.85. EPS guidance for 2026 includes the expected effect of refunds already received associated with approximately $17.7 million of estimated IEEPA tariffs paid by the Company. As of September 30, 2026, the Company has recognized $16.4 million of these refunds in its Condensed Consolidated Statements of Income, with the majority of the remaining $1.4 million expected to be realized in the current fourth quarter.

Interparfums plans to release its initial guidance for full-year 2027 on Wednesday, November 18, 2026, after the close of the market.

Dividend

The Company’s regular quarterly cash dividend of $0.80 per share will be paid on December 31, 2026 to shareholders of record on December 15, 2026.

Conference Call

Management will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Thursday, November 5, 2026

Interested parties may participate in the live call by dialing:

U.S. / Toll-free: (877) 423-9820

International: (201) 493-6749

Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin.

A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.

About Interparfums, Inc.:

Operating in the global fragrance business since 1982, Interparfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance related products under license and other agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 74% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy.

Our licensed portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Longchamp, MCM, Moncler, Montblanc, Oscar de la Renta, PUMA, Roberto Cavalli, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Interparfums, Inc. is also the registered owner of several trademarks including Annick Goutal, Lanvin, Off-White, Rochas, and Solférino.

Forward-Looking Statements:

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “should”, “will”, and “would” or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums' annual report on Form 10-K for the fiscal year ended December 31, 2025, and the reports Interparfums files from time to time with the Securities and Exchange Commission. Interparfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact Information:

See Accompanying Tables

INTERPARFUMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

(Unaudited)

Assets	September 30, 2026	December 31, 2025
Current assets:
Cash and cash equivalents	$131,912	$158,091
Short-term investments	108,334	137,093
Accounts receivable, net	375,407	320,625
Inventories	376,154	351,377
Receivables, other	7,246	9,014
Other current assets	45,102	39,954
Income taxes receivable	122	11,211
Total current assets	1,044,277	1,027,365
Property, equipment and leasehold improvements, net	174,434	184,891
Right-of-use assets, net	19,358	23,347
Trademarks, licenses and other intangible assets, net	308,258	325,185
Deferred tax assets	9,037	4,234
Other assets	21,032	20,226
Total assets	$1,576,396	$1,585,248
Liabilities and Equity
Current liabilities:
Loans payable - banks	$3,974	$9,400
Current portion of long-term debt	43,084	54,774
Current portion of lease liabilities	6,142	6,326
Accounts payable - trade	81,111	77,210
Accrued expenses	168,018	189,622
Income taxes payable	10,917	6,671
Total current liabilities	313,246	344,003
Long - term debt, less current portion	147,381	121,254
Lease liabilities, less current portion	11,557	15,967
Deferred tax liabilities	1,608	-
Total liabilities	$473,792	$481,224
Equity:
Interparfums, Inc. shareholders’ equity:
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued and outstanding	-	-
Common stock, $.001 par; authorized 100,000,000 shares; issued 41,105,825 and 41,100,125 and outstanding 32,026,981 and 32,067,285 shares at September 30, 2026 and December 31, 2025, respectively	32	32
Additional paid-in capital	95,227	127,541
Retained earnings	881,169	828,906
Accumulated other comprehensive loss	(27,293)	(9,029)
Treasury stock, at cost, 9,078,844 and 9,032,840 shares at September 30, 2026 and December 31, 2025, respectively	(70,670)	(66,734)
Total Interparfums, Inc. shareholders’ equity	878,465	880,716
Noncontrolling interest	224,139	223,308
Total equity	1,102,604	1,104,024
Total liabilities and equity	$1,576,396	$1,585,248

INTERPARFUMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share data)

(Unaudited)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Net sales	$429,508	$429,579	$1,115,430	$1,102,334
Cost of sales	141,312	156,762	379,070	392,451
Gross margin	288,196	272,817	736,360	709,883
Selling, general and administrative expenses	170,322	164,261	495,411	467,074
Income from operations	117,874	108,556	240,949	242,809
Other expenses (income):
Interest expense	1,554	2,305	4,445	5,637
Gain (loss) on foreign currency	(331)	2,215	(162)	4,576
Interest and investment income	(1,314)	(2,547)	(4,322)	(1,199)
Other loss (income)	514	(978)	85	(1,302)
Income before income taxes	117,451	107,561	240,903	235,097
Income taxes	29,275	24,282	59,142	55,218
Net income	88,176	83,279	181,761	179,879
Less: Net income attributable to the noncontrolling interests	19,973	17,470	39,705	39,590
Net income attributable to Interparfums, Inc. common shareholders	$68,203	$65,809	$142,056	$140,289
Earnings per share:
Net income attributable to Interparfums, Inc. common shareholders:
Basic	$2	$2.05	$4.44	$4.37
Diluted	$2	$2.05	$4.43	$4.36
Weighted average number of shares outstanding:
Basic	32,026	32,113	32,027	32,114
Diluted	32,039	32,149	32,031	32,158
Dividends declared per share	$0.80	$0.80	$2.40	$2.40

Contacts
Interparfums, Inc. · Michel Atwood · Chief Financial Officer · (212) 983-2640 · www.interparfumsinc.com or
The Equity Group Inc. · Devin Sullivan: (212) 836-9608 / devin.sullivan@theequitygroup.com · Conor Rodriguez: (212) 836-9628 / conor.rodriguez@theequitygroup.com · www.theequitygroup.com