INTERPARFUMS INC Q1 FY26 Results

Our United States and European based operations each delivered year-over-year growth despite mixed results across the portfolio, reflecting the strength of our business model, the appeal of our brands, and the disciplined execution of our strategy. We are navigating a dynamic global marketplace by proactively driving efficiencies across the Company in response to weakness in select regions, tariffs, and the effects of a normalizing market following years of significant global growth. We are encouraged by the resiliency of the fragrance market and its strong underlying fundamentals. Thus far in 2026, we have successfully launched new line extensions across multiple brands, fortifying our market presence and attracting new audiences. These include: Jimmy Choo, Man Parfum; Coach, Cherry for women and Platinum for men; Montblanc, Legend Elixir; GUESS, Iconic Sublime; Lacoste, Original Aqua; Donna Karan/DKNY, Cashmere & Rose Absolu; and Roberto Cavalli, Uomo Verde Assoluto. Our ESG strategy is strong, and we have seen a great return on our investment in this program. Interparfums received its third consecutive ESG rating increase from MSCI and now sits at BBB. This upgrade was driven primarily by our enhanced measures to calculate and respond to financially material environmental and social risks that our business faces. We remain confident in our ability to navigate short-term volatility and deliver sustainable, long-term results, while upholding our commitment to our customers, brand partners, and consumers. We are laying a disciplined foundation to drive growth, strengthen execution, and capture value-creating opportunities.

Our Q1 2026 results included sales of $345 million, expanded gross margin, and improved net income and diluted earnings per diluted share (“EPS”). We ended the quarter in a strong financial position and our capital allocation strategy allowed us to continue to return capital to shareholders. As of March 31, 2026, we reported $237 million in cash, cash equivalents and short-term investments, and working capital of $692 million. Operating cash flow was positive compared to cash outflow from operating activities of $7.4 million in last year’s first quarter. We continue to drive inventory efficiencies, reducing inventory days on hand by 17 days to 259 days compared to the prior year period. We are maintaining our 2026 outlook of $1.48 billion in sales and EPS of $4.85. Our cautious optimism for the balance of 2026 reflects the confidence in the underlying strength of our business model, the broadening appeal of our current brand portfolio, and the actions we are taking to mitigate macro pressures. We are keeping a close eye on global developments, including the war in the Middle East and any effects of inflation on supplier pricing adjustments and consumer behavior. We remain proactive in addressing the impact of tariffs on our cost structure, while also monitoring the potential for tariff refunds that may occur this year.