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Interparfums, Inc. Reports Record 2024 Fourth Quarter and Full Year Results

1. Record EPS of $5.12 achieved, surpassing guidance expectations. Q4 results set an all-time high. 2. Net sales grew 10% across global markets. Key regions like Western Europe saw 21% growth. 3. Dividend increased by 7% to $3.20 per share. This reflects strong financial confidence. 4. New product launches and acquisitions (Lacoste, Cavalli) boost long-term outlook. Guidance for 2025 remains robust.

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FAQ

Why Bullish?

The record EPS, robust sales growth, dividend increase, and reaffirmed guidance signal improved profitability and investor confidence. Historically, similar earnings beats have led to immediate upward price moves, as seen with other leading consumer brands.

How important is it?

The record EPS, strong sales increase, dividend raise, and clear guidance are major catalysts likely to lift IPAR's share price. These factors have historically driven significant share price appreciation in the luxury and consumer sectors.

Why Short Term?

Earnings surprises and dividend hikes typically trigger swift market reactions, leading to near-term price gains. Immediate investor sentiment shifts in similar companies have supported rapid price adjustments.

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GESCOTY
Achieves Diluted EPS of $5.12;Diluted EPS Before Impairment of $5.18 Exceeds Expectations;Reaffirms 2025 Guidance and Announces 7% Increase in Cash Dividend NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) today reported record results for the fourth quarter and full year ended December 31, 2024. Fourth Quarter & Full Year Highlights: ($ in millions, except per share amounts)Three Months EndedDecember 31,Year EndedDecember 31,20242023% Change20242023% ChangeNet Sales$362$32910%$1,452$1,31810%Gross Margin64.5%64.7%(20 bps)63.9%63.7%+20 bpsOperating Income before impairment loss $40$19112%$279$25111%Operating Margin before impairment loss11.1%5.7%+530 bps19.2%19.1%+10 bpsImpairment loss$4-NA$4-NAOperating Income$36$1991%$275$2519%Operating Margin10.0%5.7%+420 bps18.9%19.1%(20 bps)Net Income attributable to Interparfums, Inc$24$10133%$164$1538%Diluted EPS$0.75$0.32132%$5.12$4.758%Diluted EPS before impairment loss$0.82$0.32156%$5.18$4.759%The average dollar/euro exchange rate for the 2024 fourth quarter was 1.07 compared to 1.08 in the 2023 fourth quarter leading to a negative 0.2% foreign exchange impact. For the full year, the average dollar/euro exchange rate was 1.08, in line with 2023.NA – not applicable Operational CommentaryJean Madar, Chairman & Chief Executive Officer of Interparfums noted, “2024 was our best year ever. Among the highlights were: record sales and profits, successful product launches and brand extensions, plus a better-than-expected first year managing Lacoste and Roberto Cavalli (“Cavalli”) brand fragrances. “Our sales growth of 10% for both the fourth quarter and the full year was broad-based across our portfolio, reflecting strong demand for our key brands worldwide. “Our current top six brands, representing approximately 70% of our net sales, increased 5% and 4% during the fourth quarter and full year, respectively. Notably, all of our key markets strengthened with our largest markets, North America, Western Europe and Asia/Pacific, achieving gains of 6%, 21% and 3%, respectively, compared to 2023 for the full year. “The Middle East and Africa, Eastern Europe, and Central and South America also achieved top line growth of 5%, 14% and 17%, respectively, compared to 2023 for the full year. Furthermore, travel retail continued to strengthen, driven by the increase of travel frequency, distribution expansion, and enhanced consumer experience with our brands.” Mr. Madar continued, “Jimmy Choo, the largest brand in our portfolio, increased sales by 7% for the year, largely driven by the ongoing success of the I Want Choo franchise. GUESS also had a stellar year, growing 13% as a result of the continued robust performance of its legacy scents, plus the initial success of our new pillar, GUESS Iconic (women). The brand entered 2025 with very strong programs and momentum from the fashion house. “Lacoste and Cavalli performed very well in their first year under our expertise, and combined, exceeded $115 million in sales behind healthy demand. We expect further growth in the coming years as these two brands continue to leverage our knowledge and build their global presence.” “2025 will be a pivotal year for Interparfums. We have an aggressive line-up of new pillars and extensions making their debut for both our European and United States based operations. In addition, we are putting the finishing touches on our first proprietary niche brand, Solférino, and plan to launch the collection this summer through an ultra-selective distribution, including our own boutique in Paris later in the year.” Mr. Madar closed by saying, “Our business is benefitting from the broad shift into prestige and luxury fragrances, which resulted in healthy sell-out across our prestige portfolio at year end, setting the stage for a solid level of reorders in the first half of 2025.” Financial CommentaryMichel Atwood, Chief Financial Officer of Interparfums pointed out, “In 2024, excluding the previously communicated supplemental non-recurring, non-cash impairment loss of $4 million for Rochas Fashion, we delivered earnings per diluted share (“EPS”) of $5.18, beating our guidance of $5.15. Our reported EPS was $5.12, on a diluted basis, reaching an all-time high in the Company’s history. “Consolidated gross margin for the year was 63.9% and expanded 20 basis points from 63.7% driven by favorable segment mix and the impact of certain one-time expenses related to inventory in 2023.  “SG&A as a percentage of net sales was 44.7% in 2024, which is in line with the previous year. The percentage change was nominal as increased amortization cost from the addition of the Lacoste license, which represented $6 million for the year, was partially offset due to advertising and promotional (“A&P”) activities by our European based operations growing slower than our consolidated sales in 2024. We invested $281 million on A&P strategies, a 7% increase compared to 2023, which amounted to 19.3% of net sales. “These factors led to $279 million in operating income before impairment loss, an 11% increase compared to 2023, and an operating profit margin before impairment loss of 19.2%, up slightly from 19.1% in 2023. “We closed the year in a strong financial position with $235 million in cash, cash equivalents and short-term investments, and working capital of $582 million. Despite sales growth, inventory was flat compared to last year as we began to realize the benefit of our inventory optimization programs. We also significantly improved our cash conversion cycle, delivering operating cash flow equivalent to 92% of net income, up from 56% in 2023. Long-term debt approximated $157 million.” Reaffirms 2025 Guidance Mr. Atwood concluded, “The fragrance market remains robust, albeit at a more moderated pace compared to recent years, influenced in part by retail destocking. Despite the current economic uncertainty and unfavorable foreign exchange impacts, we remain confident that our 2025 guidance, which calls for net sales of $1.51 billion and EPS of $5.35, a 4% increase for both, is achievable.” Guidance assumes that the average dollar/euro exchange rate remains at current levels. Announcement of Increased Cash DividendIn February 2025, Interparfums’ Board of Directors approved an increase in the annual cash dividend rate to $3.20 per share, up 7% from $3.00 per share. This dividend increase reflects the Board’s continued confidence in the Company’s financial strength and ability to achieve long-term, sustainable sales and earnings growth. The next quarterly cash dividend of $0.80 per share is payable on March 28, 2025, to shareholders of record on March 14, 2025. Conference CallManagement will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Wednesday, February 26, 2025. Interested parties may participate in the live call by dialing: U.S. / Toll-free: (877) 423-9820International: (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 agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy. The 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, MCM, Moncler, Montblanc, Oscar de la Renta, 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 Lanvin and Rochas. Forward-Looking StatementsStatements 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' most recent annual report on Form 10-K, 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:Interparfums, Inc. The Equity Group Inc.Michel AtwoodorKarin DalyChief Financial Officer Investor Relations Counsel(212) 983-2640 (212) 836-9623 /kdaly@equityny.comwww.interparfumsinc.com www.theequitygroup.com    See Accompanying Tables INTERPARFUMS, INC. AND SUBSIDIARIESUnaudited Consolidated Balance SheetsDecember 31, 2024, and 2023(In thousands except share and per share data) Assets2024  2023 Current assets:       Cash and cash equivalents$125,433  $88,462 Short-term investments 109,311   94,304 Accounts receivable, net 274,705   247,240 Inventories 371,920   371,859 Receivables, other 6,122   7,012 Other current assets 27,035   29,458 Income taxes receivable 306   691 Total current assets 914,832   839,026 Property, equipment and leasehold improvements, net 153,773   169,222 Right-of-use assets, net 24,603   28,613 Trademarks, licenses and other intangible assets, net 282,484   296,356 Deferred tax assets 17,034   14,545 Other assets 18,535   21,567 Total assets$1,411,261  $1,369,329 Liabilities and Equity       Current liabilities:       Loans payable - banks$8,311  $4,420 Current portion of long-term debt 41,607   29,587 Current portion of lease liabilities 6,087   5,951 Accounts payable - trade 91,049   97,409 Accrued expenses 172,758   178,880 Income taxes payable 12,615   8,498 Total current liabilities 332,427   324,745 Long–term debt, less current portion 115,734   127,897 Lease liabilities, less current portion 20,455   24,517 Equity:       Interparfums, Inc. shareholders’ equity:       Preferred stock, $0.001 par value. Authorized 1,000,000 shares: none issued —   — Common stock, $0.001 par value. Authorized 100,000,000 shares: outstanding, 32,110,170 and 32,004,660 shares on December 31, 2024, and 2023, respectively 32   32 Additional paid-in capital 106,702   98,565 Retained earnings 763,240   693,848 Accumulated other comprehensive loss (72,239)  (40,188)Treasury stock, at cost, 9,981,665 and 9,981,665 common shares on December 31, 2024, and 2023, respectively (52,864)  (52,864)Total Interparfums, Inc. shareholders’ equity 744,871   699,393 Noncontrolling interest 197,774   192,777 Total equity 942,645   892,170 Total liabilities and equity$1,411,261  $1,369,329  INTERPARFUMS, INC. AND SUBSIDIARIESUnaudited Consolidated Statements of Income(In thousands except per share data)  Three Months EndedDecember 31, Twelve Months EndedDecember 31,  2024   2023   2024   2023 Net sales$361,504  $328,739  $1,452,325  $1,317,675 Cost of sales 128,465   116,029   524,984   478,597 Gross margin 233,039   212,710   927,341   839,078 Selling, general and administrative expenses 193,034   193,830   648,540   587,696 Impairment loss 4,005   --   4,005   -- Income from operations 36,000   18,880   274,796   251,382         Other expenses (income):       Interest expense 2,099   4,223   7,825   11,253 Loss (gain) on foreign currency (2,000)  2,238   1,085   1,582 Interest and investment income (528)  (2,308)  (2,218)  (10,729)Other income (252)  (192)  (287)  (317)  (681)  3,961   6,405   1,789 Income before income taxes 36,681   14,919   268,391   249,593 Income taxes 9,984   6,689   64,958   61,817 Net income 26,297   8,230   203,433   187,776 Less: Net income attributable to the noncontrolling interest 2,469   (2,190)  39,075   35,122 Net income attributable to Interparfums, Inc.$24,228  $10,420  $164,358  $152,654         Net income attributable to Interparfums, Inc. common shareholders:       Basic$0.76  $0.33  $5.13  $4.77 Diluted$0.75  $0.32  $5.12  $4.75         Weighted average number of shares outstanding:       Basic 32,056   31,977   32,037   31,994 Diluted 32,135   32,112   32,124   32,140 Dividends declared per share$0.750  $0.625  $3.00  $2.50 

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