INTERPARFUMS INC Q2 FY26 Results

Consolidated sales rose 2% in the second quarter to $341 million, bringing first half net sales to $686 million, also up 2% from the prior year period. The diversity of our overall brand portfolio again showed its strength as we saw strong growth from several of our larger brands which helped offset softness in other brands and geographies. The war in the Middle East, which again weighed on our results, represented a headwind of 3% in the second quarter and 2% for the first 6 months of the year. Excluding this effect, organic sales increased 4% in the second quarter and 1% for the first 6 months of the year. Growth in the quarter was driven by an 18% increase in sales by our United States based operations, along with favorable foreign exchange dynamics. While we are very pleased with our U.S. performance, it is important to note that in last year’s second quarter U.S.-based results were adversely impacted by a weak innovation program and tariff generated supply chain disruptions. Conversely, sales from our European based operations declined owing to high growth comparisons to the prior year period, continuing headwinds from the war in the Middle East, and a challenging operating environment in Eastern Europe. The fragrance category remains durable despite the macroeconomic and geopolitical headwinds weighing on consumers and retail partners alike. We are encouraged by the trajectory of our business at the midpoint of the year and remain cautiously optimistic about the future, drawing on a long history of performing through uncertainty with an evolving portfolio of exciting brands, disciplined execution, and a pipeline of robust innovation. Sales from European based operations declined 4% in the 2026 second quarter, reflecting an organic decline of 5% partially offset by a positive foreign exchange impact of 1%. First half sales were down 1%, despite a 3% positive contribution from foreign exchange. Jimmy Choo fragrance sales rebounded strongly after a weak first quarter, rising 23% in the second quarter leading to 8% growth in the first half of 2026. The brand’s fragrances have continued gain traction, particularly in the United States. This performance is supported by the continued success of the I Want Choo women's franchise, launched in 2021, combined with the successful launch of the Jimmy Choo Man Parfum line launched earlier this year. Coach fragrance sales declined 8% in the second quarter, reflecting an exceptionally high comparison to last year’s second quarter where brand sales grew 42%. Brand sales rose 10% in the first half of 2026 due to strong performance in the United States, its primary market. Growth has been driven by strong continued demand across most existing lines and by the first shipments of new extensions in the Coach Woman and Coach Man franchises launched earlier this year. Montblanc fragrance sales were essentially flat in the second quarter and increased 6% in the first half of the year, driven by favorable exchange rates and the ongoing success of the Montblanc Explorer Extreme line as well as the strength of the Legend franchise which was enhanced by the first quarter launch of Montblanc Legend Elixir. We plan to launch a third franchise in 2027, reflecting our commitment to the brand’s growth through innovation. Lacoste fragrance sales declined by 19% and 16% during the second quarter and first half of 2026, respectively, which followed exceptionally strong respective prior-year period growth of 59% and 44% attributable to a series of highly successful launches in early 2025. Lingering challenges in Eastern Europe also continued to impact the brand’s performance. Our confidence in the brand's future remains strong ahead of several major initiatives planned for 2027 and 2028, which we believe will drive the brand's growth. Sales by our United States operations grew by 18% during the 2026 second quarter reflecting impressive organic growth of 17% off a challenging base in 2025 and a positive foreign exchange impact of 1%. The strong second quarter led to 10% growth in the first half of 2026, which included 8% organic growth and a 2% favorable foreign exchange impact. Fragrance sales of GUESS, our largest United States based brand, rose by 10% and 11% during the second quarter and first half of 2026, respectively. Growth was driven by the ongoing success of the Iconic franchise, supported by the second quarter launch of Iconic Blue, the newest men’s extension within the franchise. Second quarter growth was also supported by the launch of the newest Amore extension, Amore Napoli. Donna Karan/DKNY fragrance sales increased 28% and 12% during the second quarter and first half of 2026, respectively. Brand sales growth reflected healthy consumer demand across product categories, fragrance franchises, and strengthening momentum across e-commerce channels. Ferragamo fragrance sales increased considerably during the second quarter and first half of 2026, rising 41% and 17%, respectively. This performance, helped by a weaker prior period comparison, was primarily driven by overall strength of the Signorina line thanks to the successful launch of Signorina Romantica, and the Ferragamo line, thanks to the successful launch of Ferragamo Sublime Leather. Roberto Cavalli fragrance sales declined 9% in the 2026 second quarter against a very high growth comparison of 23% in the prior year period, and a challenging macro-economic environment in the Middle East which is the brand’s largest market. Despite this challenging macro environment, in the first half of 2026, brand sales increased 8%, driven by new extensions launched earlier this year across multiple fragrance franchises as well as the ongoing success of last year’s blockbuster launch of Serpentine. With a rich lineup of fragrance extensions planned for the second half of 2026, a series of blockbuster launches planned for 2027 and 2028, and the proven strength of our business model, we remain well positioned to continue growing as we navigate a dynamic operating environment.