IPAR · Inter Parfums, Inc.

Inter Parfums reported record Q1 2026 results with net sales of $345 million, a 2% increase from $339 million in the prior year, despite a 1% decline in operating income to $74 million. Growth was propelled by strong performances from key brands including Coach up 30%, Montblanc up 14%, GUESS up 11%, and Roberto Cavalli up 32%, partially offset by declines in Jimmy Choo (-4%), Lacoste (-12%), and Donna Karan/DKNY (-3%). Geographically, North America grew 7% driven by Coach extensions, Central and South America surged 23% on Coach and Montblanc, while Western Europe was flat, Eastern Europe declined due to operational issues, Middle East/Africa fell amid conflicts, and Asia/Pacific softened from distribution changes. Gross margin expanded 140 basis points to 65.1% from favorable mix, lower destruction costs, offset by tariffs. SG&A rose to 43.6% of sales due to higher royalties and logistics, while A&P held steady at 15%. Net income attributable rose 2% to $43 million, yielding diluted EPS of $1.35. Balance sheet remains robust with $237 million in cash/short-term investments, $692 million working capital, and inventory days reduced to 259. Management reaffirmed FY2026 guidance of $1.48 billion sales and $4.85 EPS, citing business model strength amid macro pressures like tariffs and regional conflicts. A $0.80 quarterly dividend payable June 30 underscores capital return commitment. New launches like Jimmy Choo Man Parfum and Coach Cherry fortify the portfolio ahead of 2027 blockbusters, with ESG upgrades to BBB MSCI rating enhancing long-term positioning.