10-Q · May 5, 2026
Interparfums reported a positive Q1 for 2026 with net sales of $344.9 million, reflecting a 2% year-over-year increase. Despite slightly missing revenue consensus estimates by about $3 million, the company exceeded EPS…
Earnings analysis · 10-Q
IPAR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Interparfums delivered 2% Q2 revenue growth to $341.0 million, with U.S. growth of 18% more than offsetting a 4% decline in European operations. Profitability weakened: gross margin declined 0.7 percentage points year…
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Interparfums delivered 2% Q2 revenue growth to $341.0 million, with U.S. growth of 18% more than offsetting a 4% decline in European operations. Profitability weakened: gross margin declined 0.7 percentage points year over year to 65.5%, operating margin declined 3.3 points to 14.4%, and diluted EPS fell to $0.95 from $0.99. Liquidity and six-month cash conversion improved substantially, but Middle East disruption, tariff costs, higher marketing and royalty spending, and European softness remain near-term headwinds.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.95
What stood out
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Revenue grew despite regional disruption
Q2 net sales rose 2% year over year to $341.0 million from $333.9 million, led by an 18% increase in U.S.-based operations to $112.8 million. Revenue was down 1% sequentially from $344.9 million in Q1 2026.
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U.S. segment materially outperformed
U.S.-based operations delivered a 61.6% Q2 gross margin, up 0.9 percentage points from 60.7%, while segment operating income increased 60% to $19.4 million from $12.1 million. GUESS, Donna Karan/DKNY, and Ferragamo sales increased 10%, 28%, and 41%, respectively.
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Cash conversion improved sharply
Six-month operating cash flow improved to $45.7 million from $4.5 million in the prior-year period. Capital expenditure was only $2.4 million, implying approximately $43.3 million of calculated free cash flow and capex intensity of roughly 0.3% of six-month sales.
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Liquidity remains substantial and debt fell
Cash, cash equivalents, and short-term investments totaled $211.3 million at June 30, 2026. Long-term debt including current maturities declined to $142.8 million from $176.0 million at December 31, 2025.
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Receivables collection remained controlled
Working capital was $664 million at June 30, 2026. Accounts receivable declined to $301.8 million from $320.6 million at year-end, and days sales outstanding improved to 73 days from 74 days a year earlier.
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Tariff refunds supported reported results
The company received $8.7 million of IEEPA tariff refunds through June 30, including $6.9 million recognized as a reduction in cost of sales, and received another $8.0 million in July 2026.
What to watch
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Operating-margin and EPS pressure
Q2 operating margin compressed 3.3 percentage points year over year to 14.4% from 17.7%, and fell 7.1 percentage points sequentially from 21.5% in Q1 2026. Selling, general and administrative expense rose to 51.2% of sales from 48.5%, driven by marketing, royalty, and logistics costs.
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European and Middle East weakness persisted
European-based Q2 sales declined 4% to $228.4 million and segment operating income fell 37% to $29.5 million from $47.0 million. Middle East and Africa first-half sales declined 24% to $38.2 million, with the Middle East conflict a 3% Q2 company sales headwind.
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Inventory increased and consumed cash
Inventory rose 9% from year-end to $375.6 million, including finished goods of $248.7 million versus $221.7 million at December 31, 2025. Management attributes the increase to seasonality, although inventory still consumed $33.0 million of operating cash flow in the first half.
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Tariff costs remain a margin risk
Tariffs remained a net expense of $8.2 million in the first six months despite $8.7 million of realized refunds. The company estimates total IEEPA tariffs paid at $17.6 million, leaving refund timing and tariff-cost exposure relevant.
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No risk-factor update; controls remediation ongoing
No new risk-factor language was added: Item 1A refers investors to the 2025 Annual Report. However, management states its existing material weaknesses will not be remediated until controls operate effectively for a sufficient period and are validated through testing.
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Potential leverage for buybacks
The board authorized a line of credit of up to $250 million, repayable over a maximum of 6 years, to fund a new share repurchase program; terms remain unfinalized and management cannot assure that any minimum shares will be repurchased.
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Customer concentration increased
Macy's accounted for approximately 10% of first-half net sales in 2026, versus no customer representing 10% or more in the comparable 2025 period, increasing customer concentration.
Management's outlook
The 10-Q provides no formal numeric revenue or EPS outlook. Management remains optimistic for the remainder of 2026 and expects full-year promotion and advertising expense to approach its long-term target of approximately 21% of net sales; it also cites blockbuster launches planned for 2027 and 2028.
Earlier filings 4
10-K · March 10, 2026
Inter Parfums (IPAR) reported modest top-line growth in 2025 with revenue of $1,489.0M (sum of quarterly revenues: $339M, $334M, $430M, $386M), roughly +2.5% versus 2024. Gross margin remained broadly stable (~63.7% in…
10-Q · November 6, 2024
Interparfums reported quarter net sales of $424,629,000 for the three months ended September 30, 2024, up $56,660,000 (15.4%) versus $367,969,000 a year ago. Gross margin was $271,160,000 (≈63.9%) and income from…
10-Q · May 7, 2024
Inter Parfums reported a modest revenue increase to $323,963 (three months ended March 31, 2024) versus $311,723 a year ago (+$12,240, ~3.9%), but operating profit and EPS weakened materially. Income from operations…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.