Inter Parfums Inc. reported fourth‑quarter and full‑year 2025 results, posting revenue of $386.2 million and diluted earnings per share of $0.88, both surpassing consensus estimates of $385.9 million and $0.78 respectively. The company’s Q4 revenue grew 6.8% year‑over‑year, driven by a 9% increase in European operations and a 4% rise in U.S. sales, while the full‑year revenue rose 2% to $1.49 billion.
The earnings beat was largely attributable to disciplined cost management and a favorable product mix. Gross margin contracted to 61.5% from 64.5% in Q4 2024, a 300‑basis‑point decline that reflects tariff‑related cost pressures and a shift toward lower‑margin categories. Operating margin fell to 7.1% from 10.0% year‑ago, largely because of higher advertising spend and the impact of U.S. tariffs on raw‑material costs.
Management highlighted resilient demand for prestige fragrances and strong travel‑retail performance as key growth drivers. CEO Jean Madar noted that the company “continued to deliver strong financial results, maintained market share, and achieved significant operational milestones while effectively navigating macroeconomic headwinds and the introduction of tariffs in the United States.” The company also announced the launch of its own luxury fragrance brand, Solférino, which is expected to add new revenue streams in the coming years.
Looking ahead, Inter Parfums reaffirmed its FY2026 guidance, projecting mid‑point sales of approximately $1.48 billion and diluted EPS of $4.85. The revenue outlook sits about 2% below analyst consensus, and the EPS guidance misses consensus by roughly 0.8%. Management expressed cautious optimism for 2026, anticipating a more favorable operating environment in 2027, and emphasized continued focus on cost control, pricing power, and brand portfolio expansion.
The company’s cash position remains robust, with $295.2 million in cash, cash equivalents, and short‑term investments, and inventories declined 6% year‑over‑year. These financial metrics suggest a solid liquidity base that can support ongoing investment in brand development and potential strategic acquisitions.
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