Interparfums, Inc. (IPAR) reported third-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate. Both earnings and sales increased year over year.
Management highlighted that while the prestige and luxury fragrance category remains solid, macroeconomic pressures, including retailer destocking, shifting consumer behavior, and tariff-related disruptions, have moderated top-line growth. However, confidence remains supported by a strong innovation pipeline, continued advertising and promotional investments, and ongoing portfolio evolution to sustain momentum into 2026.
IPAR’s Quarterly Performance: Key Insights
Interparfums posted quarterly earnings of $2.05 per share, which increased 6% from $1.93 reported in the prior-year period. The metric beat the Zacks Consensus Estimate, which was pegged at $1.85 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 $429.6 million, which increased 1% from $424.6 million posted in the year-ago period. The growth was driven by continued consumer interest in prestige and luxury fragrances.
Insight Into IPAR’s Costs & Margins Performance
Interparfums posted a consolidated gross margin of 63.5%, down 40 basis points (bps) from the prior-year period, as the positive effects of improved mix and pricing were outweighed by increased U.S. import tariffs.
During the quarter, selling, general and administrative expenses were 38.2% of net sales, a decrease of 70 bps year over year. The change primarily reflects the timing of advertising and promotional spending. Advertising and promotional expenditures represented 15.3% of net sales for the third quarter of 2025.
The company’s operating income was $108.6 million. The operating margin was 25.3%, up from 25% reported in the year-ago quarter.
IPAR’s Financial Health Snapshot
This Zacks Rank #2 (Buy) company ended the quarter with cash and cash equivalents of $110.4 million, long-term debt (excluding the current portion) of $140 million and total equity of $1,104.5 million.
The company announced a cash dividend of 80 cents per share, payable on Dec. 31, 2025, to its shareholders of record as of Dec. 15.
What to Expect From IPAR in 2025
The company has revised its 2025 outlook to account for slower-than-expected growth through September amid ongoing macroeconomic uncertainty and moderating demand in several international markets outside the United States.
Interparfums now expects 2025 sales of $1.47 billion, representing a 1% year-over-year increase, compared with the earlier guidance of $1.51 billion. The company also now forecasts earnings per share of $5.12, in line with 2024 levels, compared with the prior expectation of $5.35.
Interparfums stock has lost 22.1% in the past three months compared with the industry’s decline of 2.1%.
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