Interparfums Q4 Earnings Top Estimates, Organic Sales Increase 3%

Interparfums, Inc. IPAR reported record fourth-quarter 2025 results, wherein both top and bottom lines increased year over year, and earnings beat the Zacks Consensus Estimate. 

Interparfums maintained market share and advanced key operational priorities in 2025 despite macroeconomic pressures and U.S. tariff headwinds. Net sales were supported by a diversified portfolio of prestige and luxury fragrance brands and favorable foreign exchange. The Zacks Rank #2 (Buy) company also expanded its lineup with successful launches and the introduction of its proprietary luxury brand, Solferino.

IPAR’s top seven brands, accounting for roughly 77% of total sales, posted healthy growth for both the fourth quarter and 2025. Standout performances came from Jimmy Choo, Coach, Lacoste and Roberto Cavalli, while Montblanc and GUESS gained momentum in the holiday period. Travel Retail continued to outpace overall company growth.

Although certain markets remained pressured by trade destocking and softer demand, the fragrance category’s resilience and continued innovation support a cautiously optimistic outlook for 2026, with expectations for improved operating conditions in 2027.

IPAR’s Quarterly Performance: Key Insights

Interparfums posted quarterly earnings of 88 cents per share, which increased 16% from 75 cents reported in the prior-year period. The metric beat the Zacks Consensus Estimate of 78 cents.

Consolidated net sales rose 7% to $386.2 million from $361.5 million in the year-ago quarter. On an organic basis, sales increased 3%.

European-based operations’ net sales grew 9% to $233 million, reflecting solid performances from brands such as Coach, Lacoste and Montblanc. U.S.-based operations’ net sales increased 4% to $155 million, driven by GUESS, Donna Karan/DKNY, Roberto Cavalli and MCM. Excluding the discontinued Dunhill license, U.S. sales trends improved sequentially.

Insight Into IPAR’s Cost & Margin Performance

Interparfums posted a consolidated gross margin of 61.5%, down 300 basis points (bps) from 64.5% in the prior-year period, primarily due to tariff-related cost pressures and mix impacts.

Selling, general and administrative expenses increased to $209.8 million from $193 million last year.  Operating income declined 24% to $27.5 million, with the operating margin contracting 280 bps to 7.1%.

IPAR’s Financial Health Snapshot

Interparfums ended 2025 with $295.2 million in cash, cash equivalents and short-term investments. Inventories declined 6% year over year, reflecting improved inventory optimization and a normalizing supply chain. Long-term debt, excluding the current portion, came in at approximately $121.3 million. 

The company reiterated its annual cash dividend at $3.20 per share for 2026.

What to Expect From IPAR in 2026?

Interparfums reaffirmed its 2026 guidance, projecting net sales of $1.48 billion and earnings per share of $4.85. The outlook assumes current exchange rates and reflects the anticipated full-year impact of tariffs, partially offset by pricing actions and cost-saving initiatives.

Shares of IPAR have rallied 27.2% in the past three months compared with the industry’s growth of 16.7%.

Other Stocks Worth Considering

Ralph Lauren Corporation RL, which designs, markets and distributes lifestyle products, currently sports a Zacks Rank #1 (Strong Buy). RL delivered a trailing four-quarter earnings surprise of 9.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year sales and earnings suggests growth of 12.2% and 31.9%, respectively, from the year-ago figures.

Columbia Sportswear Company COLM, which designs, develops, markets, and distributes outdoor, active and lifestyle products, sports a Zacks Rank #1 at present. COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average.

The Zacks Consensus Estimate for Columbia Sportswear’s current fiscal-year sales calls for growth of nearly 2%, while estimates for earnings suggest an 8.4% decline from the year-ago figure.

European Wax Center EWCZ, a personal care franchise brand, carries a Zacks Rank of 2. EWCZ delivered a trailing four-quarter earnings surprise of 170.2%, on average.

The consensus estimate for European Wax Center’s fiscal 2026 sales implies a rise of 1.3%, while the consensus mark for earnings calls for a 0.8% dip from the year-ago figures. 

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

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