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

Rhea-AI Summary

Interparfums (NASDAQ: IPAR) reported record results for Q4 and full year 2024, achieving diluted EPS of $5.12 ($5.18 before impairment). The company saw 10% sales growth for both Q4 and full year, with strong performance across all key markets. Their top six brands, representing 70% of net sales, increased 4% for the full year.

Key financial metrics include a gross margin of 63.9%, operating income before impairment of $279 million (up 11%), and cash position of $235 million. The company invested $281 million in advertising and promotional activities, representing 19.3% of net sales.

Notable achievements include successful first-year management of Lacoste and Roberto Cavalli brands, exceeding $115 million in combined sales. The Board approved a 7% increase in annual cash dividend to $3.20 per share. For 2025, Interparfums reaffirmed guidance targeting net sales of $1.51 billion and EPS of $5.35, projecting 4% growth.

Positive

• Record EPS of $5.18 (before impairment), exceeding guidance
• 10% sales growth in both Q4 and full year 2024
• Gross margin improved to 63.9% (up 20 basis points)
• Operating income increased 11% to $279 million
• Strong cash position of $235 million
• 7% dividend increase to $3.20 per share
• Lacoste and Cavalli brands exceeded $115 million in first-year sales

Negative

• Non-recurring impairment loss of $4 million for Rochas Fashion
• Retail destocking affecting market growth
• Unfavorable foreign exchange impacts noted

Insights

Financial Analyst

Interparfums (IPAR) has delivered record-breaking results for Q4 and full-year 2024, with diluted EPS reaching $5.18 before impairment charges, exceeding guidance and setting an all-time company record. The 10% sales growth across both quarterly and annual periods demonstrates remarkable resilience in a luxury market facing various headwinds.

The company's performance reflects two key strategic strengths: portfolio diversification and operational efficiency. Their top six brands delivered 4-5% growth while newly acquired licenses Lacoste and Roberto Cavalli exceeded expectations with combined sales surpassing $115 million in their debut year. This successful integration of new brands validates management's acquisition strategy and strengthens their competitive position in the prestige fragrance segment.

Geographic performance analysis reveals important market dynamics, with Western Europe showing exceptional 21% growth compared to more modest gains in North America (6%) and Asia/Pacific (3%). The significant outperformance in Europe suggests IPAR has effectively capitalized on the region's strong demand for luxury fragrances despite economic uncertainties.

From a margin perspective, the 20 basis point improvement in gross margin to 63.9% is particularly impressive given industry-wide inflationary pressures. This expansion, coupled with disciplined SG&A management at 44.7% of sales despite absorbing $6 million in additional Lacoste license amortization costs, demonstrates effective cost control while investing for growth.

The company's balance sheet and cash flow metrics reveal a significant operational transformation underway. Despite 10% sales growth, inventory remained flat year-over-year, indicating substantial improvements in inventory management systems. More impressively, the cash conversion cycle has dramatically improved, with operating cash flow now representing 92% of net income compared to 56% in 2023 – a transformation that provides substantially more financial flexibility for future investments and shareholder returns.

The 7% dividend increase to $3.20 per share signals management's confidence in sustainable cash flow generation, particularly noteworthy given their substantial $281 million investment in advertising and promotional activities (19.3% of sales) to support future growth.

Looking ahead, IPAR's upcoming launch of Solférino represents a strategic pivot toward vertical integration and higher-margin direct retail channels. This move into proprietary brands could potentially reshape their margin profile while reducing dependency on licensed brands. However, management's relatively conservative guidance of 4% growth for 2025 acknowledges potential headwinds from retail destocking and foreign exchange impacts, suggesting a prudent approach amid economic uncertainties.

The company's continued outperformance in the prestige fragrance segment positions them well to capitalize on the broader consumer shift toward luxury fragrances, though investors should monitor how effectively they navigate the "moderated pace" in market growth referenced in their outlook.

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 Ended December 31,			Year Ended December 31,
	2024	2023	% Change	2024	2023	% Change
Net Sales	$362	$329	10%	$1,452	$1,318	10%
Gross Margin	64.5%	64.7%	(20 bps)	63.9%	63.7%	+20 bps
Operating Income before impairment loss	$40	$19	112%	$279	$251	11%
Operating Margin before impairment loss	11.1%	5.7%	+530 bps	19.2%	19.1%	+10 bps
Impairment loss	$4	-	NA	$4	-	NA
Operating Income	$36	$19	91%	$275	$251	9%
Operating Margin	10.0%	5.7%	+420 bps	18.9%	19.1%	(20 bps)
Net Income attributable to Interparfums, Inc	$24	$10	133%	$164	$153	8%
Diluted EPS	$0.75	$0.32	132%	$5.12	$4.75	8%
Diluted EPS before impairment loss	$0.82	$0.32	156%	$5.18	$4.75	9%
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 Commentary
Jean 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 Commentary
Michel 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 Dividend
In 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 Call
Management 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) 423-9820
International: (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 Statements
Statements 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 Atwood	or	Karin Daly
Chief Financial Officer		Investor Relations Counsel
(212) 983-2640		(212) 836-9623 /kdaly@equityny.com
www.interparfumsinc.com		www.theequitygroup.com

See Accompanying Tables

INTERPARFUMS, INC. AND SUBSIDIARIES Unaudited Consolidated Balance Sheets December 31, 2024, and 2023 (In thousands except share and per share data)
Assets	2024				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 SUBSIDIARIES Unaudited Consolidated Statements of Income (In thousands except per share data)
	Three Months Ended December 31,								Twelve Months Ended December 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

FAQ

What was Interparfums (IPAR) earnings per share for 2024?

IPAR reported diluted EPS of $5.12, or $5.18 before impairment, exceeding guidance of $5.15.

How much did Interparfums (IPAR) increase its dividend in 2025?

IPAR increased its annual cash dividend by 7%, from $3.00 to $3.20 per share.

What is Interparfums (IPAR) revenue guidance for 2025?

IPAR projects net sales of $1.51 billion and EPS of $5.35 for 2025, representing 4% growth.

How did Interparfums (IPAR) new brands Lacoste and Roberto Cavalli perform in 2024?

The combined sales of Lacoste and Roberto Cavalli exceeded $115 million in their first year under IPAR management.

What was Interparfums (IPAR) operating margin before impairment in 2024?

IPAR's operating profit margin before impairment was 19.2%, slightly up from 19.1% in 2023.