依特香水第二季銷售3.41億美元升2% 淨利跌5%

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
(MARK ONE)
 
☒
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2026.

 
OR
 
☐
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ___________to ________.

 
Commission File No. 0-16469
 
INTERPARFUMS, INC.
 (Exact name of registrant as specified in its charter)
 
Delaware
 
13-3275609

(State or other jurisdiction of
 
(I.R.S. Employer

incorporation or organization)
 
Identification No.)

 
551 Fifth Avenue, New York, New York 10176

(Address of Principal Executive Offices)          (Zip Code)

 
(212) 983-2640

(Registrants telephone number, including area code)

 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered

 Common Stock, $.001 par value per share
 
IPAR
 
 The Nasdaq Stock Market

 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 
Yes ☒ No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act).
 
Large accelerated filer ☒
Accelerated filer ☐

Non-accelerated filer ☐ (Do not check if a smaller reporting company)
Smaller reporting company ☐

 
Emerging Growth company ☐

 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
At August 4, 2026, there were 32,025,781 shares of common stock, par value $.001 per share, outstanding.
 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
INDEX
​ 
 
 

 
Page Number 

Part I.
Financial Information
1

 
 
 
 

 
Item 1.
Financial Statements
1

 
 
 
 

 
 
Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
2

 
 
 
 

 
 
Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2026 and June 30, 2025 
3

 
 
 
 

 
 
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and June 30, 2025
4

 
 
 
 

 
 
Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2026 and June 30, 2025
5

 
 
 
 

 
 
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and June 30, 2025
6

 
 
 
 

 
 
Notes to Condensed Consolidated Financial Statements
7

 
 
 
 

 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
18

 
 
 
 

 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
26

 
 
 
 

 
Item 4.
Controls and Procedures
26

 
 
 
 

Part II.
Other Information
27

 
 
 
 

 
Item 1A.
Risk Factors
27

 
 
 
 

 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
27

 
 
 
 

 
Item 5.
Other Information
27

 
 
 
 

 
Item 6.
Exhibits.
28

 
 
 
 

SIGNATURES
29

​

INTERPARFUMS, INC. AND SUBSIDIARIES
 
Part I. Financial Information
 
 
Item 1.
Financial Statements

 
In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly our financial position, results of operations and cash flows for the interim periods presented. We have condensed such financial statements in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, such financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America. In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued by filing with the SEC. These financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2025, included in our annual report filed on Form 10-K.
 
The results of operations for the six months ended June 30, 2026, are not necessarily indicative of the results to be expected for the entire fiscal year.
 
Page 1

 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands except share and per share data)
 (Unaudited)
 
ASSETS

 
 
 
 
 
 

 
June 30, 2026

 
December 31, 2025

 

Current assets:

 
 
 
 
 
 

Cash and cash equivalents

$

169,704

 
$

158,091

 

Short-term investments

 
41,642

 
 
137,093

 

Accounts receivable, net allowances of $8,412 and $7,224, respectively

 
301,833

 
 
320,625

 

Inventories

 
375,584

 
 
351,377

 

Receivables, other

 
8,963

 
 
9,014

 

Other current assets

 
49,489

 
 
39,954

 

Income taxes receivable

 
3,755

 
 
11,211

 

Total current assets

 
950,970

 
 
1,027,365

 

Property, equipment and leasehold improvements, net

 
176,170

 
 
184,891

 

Right-of-use assets, net

 
20,685

 
 
23,347

 

Trademarks, licenses and other intangible assets, net

 
311,922

 
 
325,185

 

Deferred tax assets

 
9,848

 
 
4,234

 

Other assets

 
20,509

 
 
20,226

 

Total assets

$

1,490,104

 
$

1,585,248

 

 
 
 
 
 
 
 

LIABILITIES AND EQUITY

 
 
 
 
 
 

Current liabilities:

 
 
 
 
 
 

Loans payable - banks

$

2,849

 
$

9,400

 

Current portion of long-term debt

 
46,320

 
 
54,774

 

Current portion of lease liabilities

 
6,146

 
 
6,326

 

Accounts payable – trade

 
82,858

 
 
77,210

 

Accrued expenses

 
146,166

 
 
189,622

 

Income taxes payable

 
2,986

 
 
6,671

 

Total current liabilities

 
287,325

 
 
344,003

 

Long–term debt, less current portion

 
96,524

 
 
121,254

 

Lease liabilities, less current portion

 
13,075

 
 
15,967

 

Deferred tax liabilities

 
2,482

 
 
—

 

Total liabilities

$

399,406

 
$

481,224

 

 
 
 
 
 
 
 

Equity:

 
 
 
 
 
 

Interparfums, Inc. shareholders’ equity:

 
 
 
 
 
 

Preferred stock, $.001 par; authorized 1,000,000 shares; none issued and outstanding

 
—

 
 
—

 

Common stock, $.001 par; authorized 100,000,000 shares; issued 41,104,625 and 41,100,125 and outstanding 32,025,781 and 32,067,285 shares at June 30, 2026 and December 31, 2025, respectively

 
32

 
 
32

 

Additional paid-in capital

 
127,652

 
 
127,541

 

Retained earnings

 
838,588

 
 
828,906

 

Accumulated other comprehensive loss

 
(25,141)
 
 
(9,029)
 

Treasury stock, at cost, 9,078,844 and 9,032,840 shares at June 30, 2026 and December 31, 2025, respectively

 
(70,670)
 
 
(66,734)
 

Total Interparfums, Inc. shareholders’ equity

 
870,461

 
 
880,716

 

Noncontrolling interest

 
220,237

 
 
223,308

 

Total equity

 
1,090,698

 
 
1,104,024

 

Total liabilities and equity

$

1,490,104

 
$

1,585,248

 

 
See notes to condensed consolidated financial statements.
 
Page 2

 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
 (Unaudited)
 
 
 
Three Months Ended June 30,

 
 
Six Months Ended June 30,

 

 
2026

 
2025

 
2026

 
2025

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net sales

$

341,037
 
$

333,936

 
$

685,922
 
$

672,755

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Cost of sales

 
117,512
 
 
112,847

 
 
237,758
 
 
235,689

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Gross margin

 
223,525
 
 
221,089

 
 
448,164
 
 
437,066

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Selling, general and administrative expenses

 
174,584
 
 
161,913

 
 
325,089
 
 
302,813

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Income from operations

 
48,941
 
 
59,176

 
 
123,075
 
 
134,253

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Other expenses (income):

 
 
 
 
 
 
 
 
 
 
 
 

Interest expense

 
1,457
 
 
1,787

 
 
2,891
 
 
3,332

 

Loss on foreign currency

 
67
 
 
1,580

 
 
169
 
 
2,360

 

Interest and investment (income) loss

 
(690)
 
 
1,929
 
 
(3,008)
 
 
1,349
 

Other income

 
(139)
 
 
(245)
 
 
(429)
 
 
(324)
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Income before income taxes

 
48,246

 
 
54,125

 
 
123,452

 
 
127,536

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Income taxes

 
11,364

 
 
12,928

 
 
29,867

 
 
30,936

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net income

 
36,882

 
 
41,197

 
 
93,585

 
 
96,600

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Less:  Net income attributable to the noncontrolling interests

 
6,395

 
 
9,209

 
 
19,732

 
 
22,120

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net income attributable to Interparfums, Inc. common shareholders

$

30,487

 
$

31,988

 
$

73,853

 
$

74,480

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings per share:

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net income attributable to Interparfums, Inc. common shareholders:

 
 
 
 
 
 
 
 
 
 
 
 

Basic

$

0.95

 
$

1.00

 
$

2.31

 
$

2.32

 

Diluted

$

0.95

 
$

0.99

 
$

2.31

 
$

2.32
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Weighted average number of shares outstanding:

 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
32,026

 
 
32,110

 
 
32,027

 
 
32,115

 

Diluted

 
32,026

 
 
32,149

 
 
32,027

 
 
32,162

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Dividends declared per share

$

0.80
 
$

0.80
 
$

1.60
 
$

1.60

 

 
See notes to condensed consolidated financial statements.
 
Page 3

 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 (In thousands)
(Unaudited)
 
 
 
Three Months Ended June 30,

 
 
Six Months Ended June 30,

 

 
2026

 
2025

 
2026

 
2025

 

Comprehensive income:

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net income

$

36,882
 
$

41,197
 
$

93,585
 
$

96,600
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Other comprehensive income:

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net derivative instrument gain (loss), net of tax

 
(517)
 
 
2,172

 
 
(444)
 
 
6,505

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Transfer from OCI into earnings

 
433
 
 
—

 
 
(479)
 
 
1,631

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Pension benefits, net of tax

 
(53)
 
 
(52)
 
 
(108)
 
 
(102)
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Foreign currency translation adjustments
 
(4,823)
 
 
59,180

 
 
(21,983)
 
 
87,102

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Comprehensive income

 
31,922
 
 
102,497
 
 
70,571
 
 
191,736
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Comprehensive income attributable to the noncontrolling interests:

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net income

 
6,395
 
 
9,209

 
 
19,732
 
 
22,120

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Other comprehensive income:

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Net derivative instrument gain (loss), net of tax

 
(23)
 
 
602

 
 
(3)
 
 
1,793

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Pension benefits, net of tax

 
(15)
 
 
(15)
 
 
(30)
 
 
(29)
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Foreign currency translation adjustments
 
(1,634)
 
 
15,458

 
 
(6,869)
 
 
22,732

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Comprehensive income attributable to the noncontrolling interests

 
4,723
 
 
25,254

 
 
12,830
 
 
46,616

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Comprehensive income attributable to Interparfums, Inc.

$

27,199
 
$

77,243
 
$

57,741
 
$

145,120
 

 
See notes to condensed consolidated financial statements.
 
Page 4

 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 (In thousands)
(Unaudited) 
 
 
 
Three Months Ended June 30,

 
 
Six Months Ended June 30,

 

 
2026

 
2025

 
2026

 
2025

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Common stock, beginning and end of period

$

32
 
$

32
 
$

32

 
$

32

 

 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Additional paid-in capital, beginning of period

 
127,503

 
 
107,985

 
 
127,541

 
 
106,702

 

Shares issued upon exercise of stock options

 
—

 
 
1,035

 
 
280

 
 
2,112

 

Share-based compensation

 
245

 
 
205

 
 
489

 
 
411

 

Other

 
(96)
 
 
—
 
 
(658)
 
 
—

 

Purchase/Transfer of subsidiary shares

 
—

 
 
(423)
 
 
—

 
 
(423)
 

Additional paid-in capital, end of period

 
127,652

 
 
108,802

 
 
127,652

 
 
108,802

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Retained earnings, beginning of period

 
846,631

 
 
780,338

 
 
828,906

 
 
763,240

 

Net income

 
30,487
 
 
31,988
 
 
73,853
 
 
74,480
 

Dividends

 
(25,622)
 
 
(25,694)
 
 
(51,263)
 
 
(51,394)
 

Reclassification Adjustment - See Note 1
 
(12,908)
 
 
—

 
 
(12,908)
 
 
—

 

Share-based compensation

 
—
 
 
399

 
 
—

 
 
705

 

Retained earnings, end of period

 
838,588

 
 
787,031
 
 
838,588

 
 
787,031
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Accumulated other comprehensive loss, beginning of period

 
(21,853)
 
 
(46,854)
 
 
(9,029)
 
 
(72,239)
 

Foreign currency translation adjustment, net of tax

 
(3,189)
 
 
43,722

 
 
(15,114)
 
 
64,370

 

Transfer from other comprehensive income into earnings

 
433
 
 
—

 
 
(479)
 
 
1,631

 

Pension benefits, net of tax

 
(38)
 
 
(37)
 
 
(78)
 
 
(73)
 

Net derivative instrument loss, net of tax

 
(494)
 
 
1,570

 
 
(441)
 
 
4,712

 

Accumulated other comprehensive loss, end of period

 
(25,141)
 
 
(1,599)
 
 
(25,141)
 
 
(1,599)
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Treasury stock, beginning of period

 
(70,670)
 
 
(52,864)
 
 
(66,734)
 
 
(52,864)
 

Shares repurchased

 
—

 
 
(2,043)
 
 
(3,936)
 
 
(2,043)
 

Treasury stock, end of period

 
(70,670)
 
 
(54,907)
 
 
(70,670)
 
 
(54,907)
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Noncontrolling interest, beginning of period

 
230,909

 
 
218,882

 
 
223,308

 
 
197,774

 

Net income

 
6,395
 
 
9,209

 
 
19,732
 
 
22,120

 

Foreign currency translation adjustment, net of tax

 
(1,634)
 
 
15,458

 
 
(6,869)
 
 
22,732

 

Pension benefits, net of tax

 
(15)
 
 
(15)
 
 
(30)
 
 
(29)
 

Net derivative instrument gain, net of tax

 
(23)
 
 
602

 
 
(3)
 
 
1,793

 

Share-based compensation

 
181

 
 
(177)
 
 
361

 
 
(122)
 

Purchase of subsidiary shares from noncontrolling interests

 
(248)
 
 
—

 
 
(1,496)
 
 
—

 

Other

 
96

 
 
—
 
 
658

 
 
—

 

Reclassification Adjustment - See Note 1
 
12,908

 
 
—

 
 
12,908

 
 
—

 

Dividends

 
(28,332)
 
 
(26,566)
 
 
(28,332)
 
 
(26,875)
 

Noncontrolling interest, end of period

 
220,237

 
 
217,393

 
 
220,237

 
 
217,393

 

 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

Total equity

$

1,090,698

 
$

1,056,752
 
$

1,090,698

 
$

1,056,752
 

 
See notes to condensed consolidated financial statements.
 
Page 5

 

INTERPARFUMS, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
 
Six Months Ended June 30,

 

 
2026

 
2025

 

Cash flows from operating activities:

 
 
 
 
 
 

Net income

$

93,585
 
$

96,600
 

Adjustments to reconcile net income to net cash used in (provided by) operating activities:

 
 
 
 
 
 

Depreciation and amortization

 
11,631
 
 
12,291

 

Provision for credit losses

 
537

 
 
108

 

Share-based compensation

 
850

 
 
946

 

Share of income of equity investment

 
(436)
 
 
(410)
 

Noncash lease expense

 
3,045
 
 
3,969

 

Deferred tax provision

 
(3,210)
 
 
5,821

 

Change in fair value of derivatives

 
933
 
 
(5,869)
 

Changes in:

 
 
 
 
 
 

Accounts receivable

 
10,700
 
 
3,637

 

Inventories

 
(33,000)
 
 
(16,802)
 

Other assets

 
(11,906)
 
 
(5,631)
 

Operating lease liabilities

 
(3,206)
 
 
(4,217)
 

Accounts payable and accrued expenses

 
(27,586)
 
 
(74,044)
 

Income taxes, net

 
3,730
 
 
(11,889)
 

 
 
 
 
 
 
 

Net cash provided by operating activities
 
45,667

 
 
4,510
 

 
 
 
 
 
 
 

Cash flows from investing activities:

 
 
 
 
 
 

Purchases of short-term investments

 
(116,623)
 
 
(47,361)
 

Proceeds from sale of short-term investments

 
210,100
 
 
112,078

 

Purchases of property, equipment and leasehold improvements

 
(2,389)
 
 
(16,631)
 

Payment for intangible assets acquired

 
(2,736)
 
 
(23,852)
 

 
 
 
 
 
 
 

Net cash provided by investing activities
 
88,352
 
 
24,234

 

 
 
 
 
 
 
 

Cash flows from financing activities:

 
 
 
 
 
 

Repayment of loans payable, bank

 
(6,416)
 
 
—

 

Proceeds from loans payable, bank

 
—

 
 
35,160

 

Proceeds from issuance of long-term debt

 
—

 
 
54,635

 

Repayment of long-term debt

 
(28,529)
 
 
(23,795)
 

Proceeds from exercise of options

 
280
 
 
2,112

 

Dividends paid

 
(51,263)
 
 
(51,394)
 

Dividends paid to noncontrolling interest

 
(28,332)
 
 
(26,875)
 

Other financing activities

 
(479)
 
 
—

 

Purchase of subsidiary shares from noncontrolling interests

 
(1,496)
 
 
(408)
 

Purchase of treasury stock

 
(3,936)
 
 
(2,043)
 

 
 
 
 
 
 
 

Net cash used in financing activities

 
(120,171)
 
 
(12,608)
 

 
 
 
 
 
 
 

Effect of exchange rate changes on cash

 
(2,235)
 
 
9,885

 

 
 
 
 
 
 
 

Net increase in cash and cash equivalents
 
11,613
 
 
26,021
 

 
 
 
 
 
 
 

Cash and cash equivalents - beginning of period

 
158,091
 
 
125,433
 

 
 
 
 
 
 
 

Cash and cash equivalents - end of period

$

169,704
 
$

151,454
 

 
 
 
 
 
 
 

Supplemental disclosure of cash flow information:

 
 
 
 
 
 

Cash paid for:

 
 
 
 
 
 

Interest

$

2,550
 
$

3,031

 

Income taxes

$

25,385
 
$

37,147

 

 
See notes to condensed consolidated financial statements. 
 
Page 6

 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
Notes to Condensed Consolidated Financial Statements
(Unaudited) 
 
1.
Significant Accounting Policies:

 
The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026. 
 
The condensed consolidated balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. 
 
For further information, refer to the consolidated financial statements and footnotes thereto included in our annual report on Form 10-K for the year ended December 31, 2025.
 
Accounts Receivable
 
Accounts receivables were $301.8 million, $320.6 million, $274.7 million as of June 30, 2026, December 31, 2025, and December 31, 2024, respectively.

 
Inventories
Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and are stated at the lower of cost and net realizable value, with cost being determined using an average cost method which approximates first-in, first-out (“FIFO”). Cost components include raw materials, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company’s customers.

 
Income Taxes
 
Our consolidated effective tax rate was 24.2% and 24.3% for the six months ended June 30, 2026 and 2025, respectively. The Company's effective income tax rate is primarily affected by the geographic mix of earnings among jurisdictions with different statutory tax rates, the benefit associated with the Foreign-Derived Intangible Income ("FDII") deduction, excess tax benefits related to stock-based compensation, state income taxes, and other permanent differences recognized during the period. These items collectively result in the Company's effective tax rate differing from the U.S. federal statutory rate. The company does not have a jurisdictional tax forecast but uses a forecasted tax rate by segment to validate the quarterly effective tax rate. Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate. We also did not have any material discreet tax items this quarter nor significant changes in uncertain tax positions, valuation allowances, tax examinations, or enacted law changes. The Company was notified in June 2026 by the Internal Revenue Service that the Company will undergo an audit for the 2024 tax year.

 
Page 7

INTERPARFUMS, INC. AND SUBSIDIARIES
 
Notes to Condensed Consolidated Financial Statements
 

Correction of Immaterial Misstatements in Financial Statements
 
Subsequent to the issuance of the December 31, 2025 consolidated financial statements, management identified a misclassification in the presentation of equity within the Consolidated Balance Sheets and Consolidated Statement of Changes in Shareholders’ Equity. Specifically, since inception, the equity component of Interparfums SA share-based compensation was improperly recorded in retained earnings rather than being presented in noncontrolling interest.
 
The Company evaluated the misclassification under ASC 250, Accounting Changes and Error Corrections, considering both quantitative and qualitative factors, including SEC Staff Accounting Bulletin No. 99. Management concluded the misclassification was not material to the previously issued financial statements and recorded the $12.9 million reclassification correction in the current period. This adjustment is reflected in the Consolidated Balance Sheets and Statement of Changes in Shareholders’ Equity.  Refer to the “Reclassification adjustment” line item in the Statement of Changes in Shareholders’ Equity.
 
The revision affected only equity presentation in the Consolidated Balance Sheets and Statement of Changes in Shareholders’ Equity and had no impact on net income, operating income, cash flows, total assets, total liabilities, or total equity for any periods presented.

 
Reclassifications
 
Certain prior year amounts in the accompanying consolidated statement of cash flows and notes to consolidated financial statements have been reclassified to conform with current period presentation.

 

2.
Recent Agreements:

 
Nautica
 
In January 2026, we entered into a 20-year license agreement for Nautica brand fragrances and fragrance related products, a subsidiary of the Authentic Brands Group. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. Interparfums will assume full global responsibility for Nautica fragrances effective January 1, 2030. 
 
David Beckham
 
In January 2026, we entered into a 20-year license agreement for David Beckham brand fragrances and fragrance related products, a subsidiary of the Authentic Brands Group. This license will become effective on April 1, 2028. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. 
 
GUESS
 
In 2018, GUESS?, Inc. and the Company signed an exclusive worldwide license agreement for the creation, the manufacturing and the distribution of fragrances under the GUESS brand until December 31, 2033. In December 2025, the license agreement was renewed for an additional 15 years, extending the license through December 31, 2048.
 
Page 8

INTERPARFUMS, INC. AND SUBSIDIARIES
 
Notes to Condensed Consolidated Financial Statements

 
Longchamp
 
In July 2025, we announced that our 72% owned French subsidiary, Interparfums SA, signed an exclusive license agreement with Longchamp, a Parisian Maison, through December 31, 2036. Interparfums SA will be responsible for the creation, development, production and distribution of fragrance lines in Longchamp-brand points of sale and selective distribution channels. The first launch is expected in 2027. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry.
 
Annick Goutal
 
In March 2025, we announced that our 72% owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Goutal Paris held by Amorepacific Europe. In January 2026, Interparfums SA began commercial use of the fragrance brand. 
 
Coach
 
In 2015, Coach and Interparfums SA signed an exclusive worldwide license agreement for the creation, the manufacturing and the distribution of fragrances under the Coach brand until June 30, 2026. In March 2025, the license agreement was renewed for an additional 5-year term, extending the license through June 30, 2031.  
 
Abercrombie & Fitch and Hollister
In March 2025, we expanded our Fierce distribution agreement, which now allows for a global distribution of the iconic Fierce fragrance line that either party may terminate on two year’s notice. Furthermore, our existing Abercrombie & Fitch and Hollister fragrance license agreement will expire on March 14, 2028. The goal of the updated Fierce distribution agreement is to drive, over time, more consistency between the products that are carried in the Abercrombie & Fitch stores and unaffiliated retailers.

 

3.
Recent Accounting Pronouncements:

 
In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03. The ASU requires, among other things, more detailed disclosures about types of expenses in commonly presented expense captions such as cost of sales and selling, general and administrative expenses and is intended to improve the disclosures about an entity's expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization. ASU 2024-03 will also require the Company to disclose both the amount and the Company's definition of selling expenses. The guidance, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods for fiscal years beginning after December 15, 2027, on a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our disclosures.
 
In November 2025, the FASB issued ASU 2025‑09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The guidance makes targeted amendments to the hedge accounting model to better align the accounting with an entity’s risk management activities and to clarify the application of certain hedge accounting requirements. The amendments are effective for the Company for fiscal years beginning after December 15, 2026, including interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its hedge accounting policies and disclosures; however, the Company does not expect adoption to have a material impact on its consolidated financial position, results of operations, or cash flows.
 
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). This update clarifies the applicability, form and content, and interim disclosure requirements in ASC Topic 270 and enhances navigability of the interim reporting guidance. ASU 2025-11 also establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact ASU 2025-11 will have on its interim consolidated financial statements.
 
There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements.
 
Page 9

 

INTERPARFUMS, INC. AND SUBSIDIARIES
 
Notes to Condensed Consolidated Financial Statements

  
4.
Inventories:

 
Inventories consist of the following:
 
(in thousands):

June 30, 2026

 
December 31, 2025

 

Raw materials and component parts

$

126,840
 
$

129,706
 

Finished goods

 
248,744
 
 
221,671
 

 
 
 
 
 
 
 

 
$

375,584
 
$

351,377
 

 

5.
Fair Value Measurement:

 
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
 
 
 
 
 
 
Fair Value Measurements at June 30, 2026

 

 
 
Total

 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)

 
 
Significant Other Observable Inputs
(Level 2)

 
 
Significant Unobservable Inputs
(Level 3)

 

Assets:

 
 
 
 
 
 
 
 
 
 
 
 

Short-term investments

$

41,642
 
$

3,680
 
$

37,962
 
$

—

 

Interest rate swaps

 
1,651
 
 
—

 
 
1,651
 
 
—

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Total Assets

$

43,293
 
$

3,680
 
$

39,613
 
$

—

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Liabilities:

 
 
 
 
 
 
 
 
 
 
 
 

Interest rate swaps

$

10
 
$

—

 
$

10
 
$

—

 

Foreign currency forward exchange contracts not accounted for using hedge accounting

 
428
 
 
—

 
 
428
 
 
—

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Total Liabilities

$

438
 
$

—

 
$

438
 
$

—

 

 
 
 
 
 
 
Fair Value Measurements at December 31, 2025

 

 
 
Total

 
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)

 
 
Significant Other Observable Inputs
(Level 2)

 
 
Significant Unobservable Inputs
(Level 3)

 

Assets:

 
 
 
 
 
 
 
 
 
 
 
 

Short-term investments

$

137,093

 
$

3,801

 
$

133,292

 
$

—

 

Interest rate swaps

 
1,597

 
 
—

 
 
1,597

 
 
—

 

Foreign currency forward exchange contracts not accounted for using hedge accounting

 
498

 
 
—

 
 
498

 
 
—

 

Foreign currency forward exchange contracts accounted for using hedge accounting

 
169

 
 
—

 
 
169

 
 
—

 

 
 
 
 
 
 
 
 
 
 
 
 
 

Total Assets

$

139,357

 
$

3,801

 
$

135,556

 
$

—

 

 
Page 10

INTERPARFUMS, INC. AND SUBSIDIARIES
 
Notes to Condensed Consolidated Financial Statements

 
The carrying amount of cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued expenses approximate fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. The fair value of the Company’s long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value.
 
Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps is the discounted net present value of the swaps using third party quotes from financial institutions.

 

6.
Derivative Financial Instruments:

 
The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Before entering into a derivative transaction for hedging purposes, we determine that a high degree of initial effectiveness exists between the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates. High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item. The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference, which is reported in current period earnings. Any hedge ineffectiveness is also recognized as a gain or loss on foreign currency in the income statement. For contracts designated as hedges that are no longer deemed highly effective, hedge accounting is discontinued, and gains and losses accumulated in other comprehensive income are reclassified to earnings. If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated in other comprehensive income are reclassified to current-period earnings. 
 
In December 2022, to finance the acquisition of the Lacoste trademark, the Company entered into a €50 million (approximately $57.0 million) 4-year term loan with a variable interest rate. This variable rate debt was swapped for variable interest rate debt with a maximum rate of 2% per annum. This swap is a hedged derivative instrument and is therefore recorded at fair value and changes in fair value are reflected in the accompanying consolidated statements of comprehensive income.
 
In connection with the April 2021 acquisition of the office building complex in Paris, €120 million (approximately $136.7 million) of the purchase price was financed through a 10-year variable rate term loan. The Company entered into interest rate swap contracts related to €80 million of the loan, effectively exchanging the variable interest rate to a fixed rate of approximately 1.1%. This derivative instrument is recorded at fair value and changes in fair value are reflected in the accompanying consolidated statements of income.
 
Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in loss on foreign currency in the accompanying consolidated statements of income. Such gains and losses were immaterial for the six months ended June 30, 2026 and 2025, respectively.
 
All derivative instruments are reported as either assets or liabilities on the consolidated balance sheet measured at fair value. The fair value of interest rate swaps includes a liability position, which is included in long-term debt on the accompanying consolidated balance sheet, and an asset position, which is included in other current assets and other assets on the accompanying balance sheet. The fair value of foreign currency forward exchange contracts at June 30, 2026, resulted in a net liability and is included in accrued expenses on the accompanying consolidated balance sheet.
 
At June 30, 2026, the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $52 million, all of which have maturities of less than one year. 

 
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INTERPARFUMS, INC. AND SUBSIDIARIES
 
Notes to Condensed Consolidated Financial Statements
 
7.
Commitments and Contingencies:

 
Leases
 
The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term.
 
In determining lease asset value, the Company conside