Inter Parfums, Inc.

Consolidated net sales increased 2% in both Q2 and the first half of 2026. Excluding the war-related headwinds in the Middle East, organic sales advanced 4% in Q2 and 1% year to date. First-half gross margin expanded 30 basis points to 65.3%, while operating profit declined to $123 million and operating margin was 17.9% versus 20% a year ago. Net income held stable at $74 million, or $2.31 per diluted share, compared with $2.32 last year. The company ended June 30 with $211 million in cash, cash equivalents and short-term investments and $664 million in working capital. Full-year guidance remains approximately $1.48 billion in sales and $4.85 diluted EPS, with gross margin expected to improve by roughly 150 basis points, including 110 basis points from tariff refunds. A&P spending is expected to approach about 21% of net sales for the full year.

Jean Madar framed the quarter as evidence that Interparfums is growing through a difficult environment rather than just managing it. He highlighted broad brand momentum, strong regional performance in North America and Asia Pacific, and a diversified portfolio that helped offset pressure from the Middle East, Eastern Europe and softer Western Europe. He was notably optimistic about 2027, saying major brands will each have blockbuster launches and that Longchamp could become the next $100 million brand.

Michel Atwood emphasized the financial durability of the model and pointed to the main drivers behind performance: 2% reported sales growth, first-half gross margin of 65.3%, and net income of $74 million or $2.31 per diluted share. He said tariffs added $8.2 million of net expense in the first half, partially offset by $8.7 million of IEEPA tariff refunds received as of June 30, including $6.9 million recognized in Q2, with the remaining balance received in July. He also noted $129 million of A&P spending in the first half, or 18.8% of sales, and said the board authorized a share repurchase program supported by up to a $250 million line of credit, while reiterating a measured approach focused on flexibility and long-term value creation.

Analysts focused on consumer selectivity, China trends, launch timing for 2027, marketing efficiency, inventory levels, and the path to raising guidance. Management said it is not seeing a meaningful increase in promotionality or a shift toward smaller sizes, and that China is doing well, helped by celebrity ambassadors, though the market is still relatively small for the company. On 2027 launches, Jean Madar said blockbuster launches across major brands should create halo effects and support high-single-digit to low-double-digit growth, while Michel Atwood said investment should largely be funded within the P&L through scale benefits. On inventory, management said distributor and retailer inventory looks well managed and destocking is normalizing, with year-end inventory expected to be better than last year.