ipar-20240930.htm

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 September 30, 2024.

☐	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 November 6, 2024, there were 32,030,280 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

		Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	2

		Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2024 and September 30, 2023	3

		Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and September 30, 2023	4

		Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2024 and September 30, 2023	5

		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and September 30, 2023	6

		Notes to Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

	Item 4.	Controls and Procedures	23

Part II.	Other Information		24

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	24

	Item 5.	Other Information	24

	Item 6.	Exhibits.	25

SIGNATURES			26

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, 2023, included in our annual report filed on Form 10-K.

The results of operations for the nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the entire fiscal year.

Page 1

INTERPARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

(Unaudited)


ASSETS
	September 30, 2024			December 31, 2023
Current assets:
Cash and cash equivalents	$	78,419		$	88,462
Short-term investments		78,783			94,304
Accounts receivable, net		354,175			247,240
Inventories		412,758			371,859
Receivables, other		4,984			7,012
Other current assets		26,788			29,458
Income taxes receivable		533			691
Total current assets		956,440			839,026
Property, equipment and leasehold improvements, net		166,435			169,222
Right-of-use assets, net		25,471			28,613
Trademarks, licenses and other intangible assets, net		290,864			296,356
Deferred tax assets		19,742			14,545
Other assets		21,648			21,567
Total assets	$	1,480,600		$	1,369,329

LIABILITIES AND EQUITY
Current liabilities:
Loans payable - banks	$	8,957		$	4,420
Current portion of long-term debt		44,538			29,587
Current portion of lease liabilities		6,189			5,951
Accounts payable – trade		96,578			97,409
Accrued expenses		166,156			178,880
Income taxes payable		17,164			8,498
Total current liabilities		339,582			324,745
Long–term debt, less current portion		134,585			127,897
Lease liabilities, less current portion		21,304			24,517

Equity:
Interparfums, Inc. shareholders’ equity:
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued		—			—
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 32,029,580 and 32,004,660 shares at September 30, 2024 and December 31, 2023, respectively		32			32
Additional paid-in capital		101,123			98,565
Retained earnings		762,826			693,848
Accumulated other comprehensive loss		(32,641	)		(40,188	)
Treasury stock, at cost, 9,981,665 and 9,981,665 shares at September 30, 2024 and December 31, 2023, respectively		(52,864	)		(52,864	)
Total Interparfums, Inc. shareholders’ equity		778,476			699,393
Noncontrolling interest		206,653			192,777
Total equity		985,129			892,170
Total liabilities and equity	$	1,480,600		$	1,369,329

See notes to consolidated financial statements.

Page 2

INTERPARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share data)

(Unaudited)


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2024		2023			2024			2023

Net sales	$	424,629	$	367,969		$	1,090,821		$	988,936

Cost of sales		153,469		132,962			396,519			362,568

Gross margin		271,160		235,007			694,302			626,368

Selling, general and administrative expenses		165,166		147,805			455,506			393,866

Income from operations		105,994		87,202			238,796			232,502

Other expenses (income):
Interest expense		1,978		2,397			5,726			7,030
Loss (gain) on foreign currency		3,355		(669	)		3,085			(656	)
Interest and investment loss (income)		254		(1,062	)		(1,690	)		(8,421	)
Other loss (income)		1		(77	)		(35	)		(125	)

Nonoperating Income (Expense)		5,588		589			7,086			(2,172	)

Income before income taxes		100,406		86,613			231,710			234,674

Income taxes		23,571		20,493			54,974			55,128

Net income		76,835		66,120			176,736			179,546

Less: Net income attributable to the noncontrolling interest		14,576		12,906			36,606			37,312

Net income attributable to Interparfums, Inc.	$	62,259	$	53,214		$	140,130		$	142,234

Earnings per share:

Net income attributable to Interparfums, Inc. common shareholders:
Basic	$	1.94	$	1.66		$	4.37		$	4.44
Diluted	$	1.93	$	1.66		$	4.34		$	4.42

Weighted average number of shares outstanding:
Basic		32,026		31,976			32,030			32,000
Diluted		32,266		32,124			32,266			32,149

Dividends declared per share	$	0.750	$	0.625		$	2.250		$	1.875

See notes to consolidated financial statements.

Page 3

INTERPARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Comprehensive income:

Net income	$	76,835		$	66,120		$	176,736		$	179,546

Other comprehensive income:

Net derivative instrument loss, net of tax		(239	)		(363	)		(1,411	)		(4,606	)

Transfer from OCI into earnings		—			—			(64	)		1,709

Translation adjustments, net of tax		31,385			(15,692	)		10,891			(2,657	)

Comprehensive income		107,981			50,065			186,152			173,992

Comprehensive income attributable to the noncontrolling interests:

Net income		14,576			12,906			36,606			37,312

Other comprehensive income:

Net derivative instrument loss, net of tax		(66	)		(100	)		(388	)		(327	)

Translation adjustments, net of tax		8,989			(4,892	)		2,257			(1,481	)

Comprehensive income attributable to the noncontrolling interests		23,499			7,914			38,475			35,504

Comprehensive income attributable to Interparfums, Inc.	$	84,482		$	42,151		$	147,677		$	138,488

See notes to consolidated financial statements.

Page 4

INTERPARFUMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023

Common stock, beginning and end of period	$	32		$	32		$	32		$	32


Additional paid-in capital, beginning of period		100,505			95,984			98,565			90,186
Shares issued upon exercise of stock options		359			332			1,729			5,523
Share-based compensation		259			311			780			935
Transfer of subsidiary shares purchased		—			(875	)		49			(892	)
Additional paid-in capital, end of period		101,123			95,752			101,123			95,752

Retained earnings, beginning of period		724,268			669,688			693,848			620,095
Net income		62,259			53,214			140,130			142,234
Dividends		(24,022	)		(20,038	)		(71,985	)		(60,058	)
Share-based compensation		321			227			833			820
Retained earnings, end of period		762,826			703,091			762,826			703,091

Accumulated other comprehensive loss, beginning of period		(54,864	)		(48,739	)		(40,188	)		(56,056	)
Foreign currency translation adjustment, net of tax		22,396			(10,800	)		8,634			(1,176	)
Transfer from other comprehensive income into earnings		—			—			(64	)		1,709
Net derivative instrument loss, net of tax		(173	)		(263	)		(1,023	)		(4,279	)
Accumulated other comprehensive loss, end of period		(32,641	)		(59,802	)		(32,641	)		(59,802	)

Treasury stock, beginning of period		(52,864	)		(48,764	)		(52,864	)		(37,475	)
Shares repurchased		—			—			—			(11,289	)
Treasury stock, end of period		(52,864	)		(48,764	)		(52,864	)		(48,764	)

Noncontrolling interest, beginning of period		184,129			178,733			192,777			171,364
Net income		14,576			12,906			36,606			37,312
Foreign currency translation adjustment, net of tax		8,989			(4,892	)

SEC Form 10-Q filed by Interparfums Inc.