Interparfums Q2 Earnings Miss Estimates, Sales Decline 2% Y/Y

Interparfums, Inc. (IPAR) reported second-quarter 2025 results, wherein both top and bottom lines missed the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.

Management highlighted that U.S. demand, which accounted for 35% of second-quarter sales, remains strong despite a slowdown in global fragrance market growth. The company expressed confidence in its ability to navigate current challenges, supported by the strong brand portfolio and extensive distribution network. While headwinds affected second-quarter performance and are expected to persist in the second half, management believes that proactive measures will enable it to fully address these challenges by 2026.

IPAR’s Quarterly Performance: Key Insights

Interparfums posted quarterly earnings of 99 cents per share, which decreased 13% from $1.14 reported in the prior-year period. The metric missed the Zacks Consensus Estimate, which was pegged at $1.10 per share.

Interparfums, Inc. Price, Consensus and EPS Surprise

Interparfums, Inc. price-consensus-eps-surprise-chart | Interparfums, Inc. Quote

The company reported consolidated net sales of $334 million, which decreased 2% from $342 million posted in the year-ago period. The metric missed the Zacks Consensus Estimate of $341 million.

Insight Into IPAR’s Costs & Margins Performance

Interparfums reported a consolidated gross margin of 66.2%, representing a 170-basis-point (bps) increase compared with the prior-year period. This improvement was primarily driven by a favorable segment and brand mix.

During the quarter, selling, general and administrative expenses were 48.5% of net sales, an increase of 290 bps year over year. This rise was caused by higher levels of advertising and promotional expenditures in 2025. These expenditures represented 20.6% of net sales for the second quarter of 2025.

The company’s operating income was $59.2 million. The operating margin was 17.7%, down from 18.9% reported in the year-ago quarter.

IPAR’s Financial Health Snapshot

This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $151.5 million, long-term debt (excluding the current portion) of $153.1 million and total equity of $1,056.8 million.

The company announced a cash dividend of 80 cents per share, payable on Sept. 30, 2025, to its shareholders of record as of Sept. 15.

What to Expect From IPAR in 2025

Management noted that the first-half sellout was strong, but sales fell slightly short due to ongoing trade destocking. Looking to the second half, the company remains cautious given macroeconomic uncertainties, including tariff-related supply-chain impacts, softer demand in some international markets and currency volatility.

The company reaffirmed its 2025 guidance, estimating net sales of $1.51 billion and earnings per share of $5.35.

Interparfums stock has lost 1.1% in the past three months compared with the industry’s decline of 0.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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