Earnings

Interparfums Lifts 2026 Sales Outlook To $1.49 Billion, Holds $4.85 EPS Target As Quarterly Sales Stall

Third-quarter sales were flat at $430 million while profit rose 4%, and gross margin widened to 67.1%.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Interparfums Lifts 2026 Sales Outlook To $1.49 Billion, Holds $4.85 EPS Target As Quarterly Sales Stall

Interparfums, which makes and sells licensed prestige fragrances for brands such as Coach and Jimmy Choo, raised its 2026 sales outlook to $1.49 billion from $1.48 billion and held its earnings-per-share target at $4.85, it said in an earnings release Wednesday. Third-quarter sales were flat at $430 million, while diluted earnings per share rose 4% to $2.13.

Margin up, sales flat

Net income attributable to the company rose 4% to $68 million in the quarter. Gross margin widened 360 basis points (3.6 percentage points) to 67.1%, which the company credited to favorable segment, brand and channel mix and lower-than-expected destruction costs, partly offset by higher tariff expenses.

One-time refunds of IEEPA tariffs added a further $7.9 million to gross margin in the quarter and $14.8 million for the first nine months. Operating income rose 9% to $118 million.

Sales rose 1% to $1,115 million for the nine months, but operating income slipped 1% to $241 million. Selling, general and administrative costs rose to 44.4% of sales from 42.4%, on higher brand marketing, royalty costs growing ahead of sales and higher logistics costs.

EPS guidance includes refunds tied to about $17.7 million of estimated IEEPA tariffs the company paid. It had recognized $16.4 million through September 30, with most of the remaining $1.4 million expected in the fourth quarter. Management is reinvesting the refunds in advertising and expects full-year spending to approach its long-term target of about 21% of net sales.

Where the fragrance business grew and shrank

Interparfums distributes its fragrances in over 120 countries and relies on third parties to fill its products. Among its first-nine-month regional results, North America, its largest market, rose 4%, Asia/Pacific 12% and Central and South America 12%. Western Europe fell 3% and Eastern Europe 15%.

Middle East and Africa sales fell 19%, primarily reflecting the ongoing war in the Middle East, the company said. The war was a 1% headwind to third-quarter sales and 2% for the nine months.

By brand, Coach rose 15%, Montblanc 8% and Jimmy Choo 5% year to date. Lacoste fell 9% for the period but grew 4% in the third quarter. Chief Executive Jean Madar said the global portfolio lets the company capture healthy demand while offsetting "challenging conditions in certain of our markets."

Cash, buybacks and 2027

The company held $240 million in cash, cash equivalents and short-term investments at September 30, and long-term debt excluding current maturities of about $147 million. Operating cash flow for nine months was $102 million, against $68 million a year earlier.

It spent about $50 million in the third quarter buying shares of its Paris-listed subsidiary, Interparfums SA, lifting its stake from about 72.5% to 74.3%. Chief Financial Officer Michel Atwood said the cash gives flexibility to potentially acquire one or more brands.

The company will pay a $0.80 quarterly dividend on December 31 to holders of record December 15. Its market value was $3.7 billion as of Wednesday evening.

Management will discuss results on a call at 11:00 a.m. ET Thursday and plans to issue initial 2027 guidance after the close on Wednesday, November 18.

Sources

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