# INTERPARFUMS INC (IPAR)

Informational only - not investment advice.

CIK: 0000822663
SIC: 2844 Perfumes, Cosmetics & Other Toilet Preparations
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2844 Perfumes, Cosmetics & Other Toilet Preparations](/industry/2844/)
Latest 10-K filed: 2026-03-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=822663
Filing source: https://www.sec.gov/Archives/edgar/data/822663/000175392626000464/ipar-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-10 · accession 0001753926-26-000464 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000822663.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,488,509,000 USD | 2025 | verified |
| Net income | 168,387,000 USD | 2025 | verified |
| Assets | 1,585,248,000 USD | 2025 | verified |
| Free cash flow | 190,486,000 USD | 2025 | computed |
| Net margin | 11.31% | 2025 | computed |
| Operating margin | 18.16% | 2025 | computed |
| Revenue YoY | +2.49% | 2025 | computed |
| ROE | 19.12% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | IPAR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.3% | 1.6% | 100 | 9 |
| Operating margin | 18.2% | 4.3% | 100 | 9 |
| Revenue growth | 2.5% | 0.1% | 75 | 9 |
| FCF margin | 12.8% | 11.4% | 75 | 9 |
| ROE | 19.1% | 2.0% | 100 | 8 |
| ROA | 10.6% | 1.1% | 88 | 9 |
| Liabilities / equity | 0.80 | 1.52 | 12 | 9 |
| Current ratio | 2.99 | 1.76 | 88 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 2844 Perfumes, Cosmetics & Other Toilet Preparations, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1488509000 | USD | 2025 | 2026-03-10 |
| Net income | 168387000 | USD | 2025 | 2026-03-10 |
| Assets | 1585248000 | USD | 2025 | 2026-03-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000822663.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 521,072,000 | 591,251,000 | 675,574,000 | 713,514,000 | 539,009,000 | 879,516,000 | 1,086,653,000 | 1,317,675,000 | 1,452,325,000 | 1,488,509,000 |
| Net income | 33,331,000 | 41,594,000 | 53,793,000 | 60,249,000 | 38,219,000 | 87,411,000 | 120,938,000 | 152,654,000 | 164,358,000 | 168,387,000 |
| Operating income | 66,678,000 | 78,623,000 | 94,731,000 | 104,727,000 | 70,083,000 | 148,050,000 | 194,303,000 | 251,382,000 | 274,796,000 | 270,317,000 |
| Gross profit | 326,471,000 | 376,286,000 | 427,562,000 | 445,936,000 | 330,731,000 | 556,902,000 | 694,422,000 | 839,078,000 | 927,341,000 | 947,219,000 |
| Diluted EPS | 1.07 | 1.33 | 1.71 | 1.90 | 1.21 | 2.75 | 3.78 | 4.75 | 5.12 | 5.24 |
| Operating cash flow | 54,564,000 | 35,891,000 | 63,041,000 | 76,452,000 | 64,993,000 | 119,586,000 | 73,031,000 | 105,774,000 | 187,642,000 | 214,900,000 |
| Capital expenditures | 4,777,000 | 3,023,000 | 3,956,000 | 5,427,000 | 11,011,000 | 141,274,000 | 33,756,000 | 6,465,000 | 4,740,000 | 24,414,000 |
| Dividends paid |  |  |  | 34,579,000 | 20,805,000 | 31,690,000 | 63,743,000 | 80,047,000 | 96,026,000 | 102,721,000 |
| Assets | 682,409,000 | 777,772,000 | 797,829,000 | 828,832,000 | 890,145,000 | 1,145,364,000 | 1,308,542,000 | 1,369,329,000 | 1,411,261,000 | 1,585,248,000 |
| Stockholders' equity | 370,391,000 | 433,298,000 | 447,607,000 | 468,004,000 | 535,835,000 | 571,920,000 | 616,782,000 | 699,393,000 | 744,871,000 | 880,716,000 |
| Free cash flow | 49,787,000 | 32,868,000 | 59,085,000 | 71,025,000 | 53,982,000 | -21,688,000 | 39,275,000 | 99,309,000 | 182,902,000 | 190,486,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 6.40% | 7.03% | 7.96% | 8.44% | 7.09% | 9.94% | 11.13% | 11.59% | 11.32% | 11.31% |
| Operating margin | 12.80% | 13.30% | 14.02% | 14.68% | 13.00% | 16.83% | 17.88% | 19.08% | 18.92% | 18.16% |
| Return on equity | 9.00% | 9.60% | 12.02% | 12.87% | 7.13% | 15.28% | 19.61% | 21.83% | 22.07% | 19.12% |
| Return on assets | 4.88% | 5.35% | 6.74% | 7.27% | 4.29% | 7.63% | 9.24% | 11.15% | 11.65% | 10.62% |
| Liabilities / equity | 0.84 | 0.80 | 0.78 | 0.77 | 0.66 | 1.00 | 1.12 | 0.96 | 0.89 | 0.80 |
| Current ratio | 3.32 | 3.29 | 3.02 | 3.11 | 3.85 | 2.90 | 2.29 | 2.58 | 2.79 | 2.99 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/IPAR/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000822663.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.30 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.68 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.09 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 367,969,000 | 53,214,000 | 1.66 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 328,739,000 | 10,420,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 323,963,000 | 41,048,000 | 1.27 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 342,229,000 | 36,823,000 | 1.14 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 424,629,000 | 62,259,000 | 1.93 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 361,504,000 | 24,228,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 338,819,000 | 42,492,000 | 1.32 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 333,936,000 | 31,988,000 | 0.99 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 429,579,000 | 65,809,000 | 2.05 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 386,175,000 | 28,098,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 344,885,000 | 43,366,000 | 1.35 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 341,037,000 | 30,487,000 | 0.95 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from IPAR's latest 10-K: [/company/IPAR/business/](/company/IPAR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from IPAR's latest 10-K: [/company/IPAR/risk-factors/](/company/IPAR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/822663/000175392626001317/ipar-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Information

Statements in this report which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums’ annual report on Form 10-K for the fiscal year ended December 31, 2025, and the reports Interparfums files from time to time with the Securities and Exchange Commission (“SEC”). Interparfums does not intend to and undertakes no duty to update the information contained in this report.

Overview

We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products. We manage our business in two segments, European based operations and United States based operations. Certain prestige fragrance products are produced and marketed by our European based operations through our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28% of Interparfums SA shares trade on the Euronext.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 70% and 72% of net sales for the six months ended June 30, 2026 and 2025. We have built a portfolio of prestige brands, which include Annick Goutal, Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Longchamp, Moncler, Montblanc, Off-White, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world. 

Through our United States based operations, we also produce and distribute fragrance and fragrance related products. United States based operations represented 30% and 28% of net sales for the six months ended June 30, 2026 and 2025, respectively. These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli brands.

Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Coach, Jimmy Choo, Montblanc, GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names.

As a percentage of net sales for the six months ended June 30, 2026 and 2025, product sales for the Company’s largest brands represented 81% and 77%, respectively, with a split by brand as follows:

[[GREPCENT_TABLE]]
[["","","Six Months Ended June 30,"],["","","2026","","2025"],["Coach","","19","%","","17","%"],["Jimmy Choo","","18","%","","17","%"],["Montblanc","","16","%","","15","%"],["GUESS","","11","%","","10","%"],["Lacoste","","7","%","","8","%"],["Donna Karan/DKNY","","7","%","","6","%"],["Ferragamo","","3","%","","3","%"]]
[[/GREPCENT_TABLE]]

Page 18

INTERPARFUMS, INC. AND SUBSIDIARIES

For the six months ended June 30, 2026, Macy's, our top retail customer, accounted for approximately 10% of net sales. No one customer represented 10% or more of net sales for the six months ended June 30, 2025.  

Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season. In certain markets where we sell directly to retailers, seasonality is more evident. We primarily sell directly to retailers in France, the United States, and Italy.

We grow our business in two distinct ways. First, we grow by adding new brands to our portfolio, through new licenses or other arrangements, or outright acquisitions of brands. Second, we grow through the introduction of new products and by supporting new and established products through advertising, merchandising and sampling, as well as phasing out underperforming products, so that we can devote greater resources to those products with greater potential. The economics of developing, producing, launching and supporting products influence our sales and operating performance each year. The introduction of new products may have some cannibalizing effect on sales of existing products, which we take into account in our business planning.

Our business is not capital intensive, and it is important to note that we do not own manufacturing facilities. We act as a general contractor and source the components we need from our suppliers. These components are received and stored directly at our third party fillers or received at one of our distribution centers. For those components received at one of our distribution centers, based upon production needs, the components are subsequently sent to one of several third party fillers, which manufacture the finished product for us and then deliver them to one of our distribution centers.

As with any global business, many aspects of our operations are subject to influences outside our control. We believe we have a strong and well diversified brand portfolio with global reach and potential. As part of our strategy, we plan to continue to make investments behind fast-growing markets and channels to grow market share. 

Our reported net sales are impacted by changes in foreign currency exchange rates as approximately 50% of net sales of our European based operations are denominated in U.S. dollars, while almost all costs of our European based operations are incurred in euro. We address certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates.

Recent Important Events

Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Discussion of Critical Accounting Policies

Information regarding our critical accounting policies can be found in our 2025 Annual Report on Form 10-K filed with the SEC.

Page 19

INTERPARFUMS, INC. AND SUBSIDIARIES

Results of Operations

Three and Six Months Ended June 30, 2026 as Compared to the Three and Six Months Ended June 30, 2025

Net Sales:

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","","Six Months Ended June 30,"],["(in millions)","2026","","2025","","% Change","","","2026","","2025","","% Change"],["European based product sales","$","231.1","","$","240.5","","","(4)","%","","$","483.3","","$","488.4","","","(1)","%"],["United States based product sales","","112.8","","","95.8","","","18","%","","","208.9","","","190.1","","","10","%"],["Eliminations","","(2.9)","","","(2.4)","","","n/a","","","","(6.3)","","","(5.7)","","","n/a"],["","$","341.0","","$","333.9","","","2","%","","$","685.9","","$","672.8","","","2","%"]]
[[/GREPCENT_TABLE]]

*n/a = not applicable

Net sales for the three months ended June 30, 2026 increased 2% from three months ended June 30, 2025. The average dollar/euro exchange rate for the current second quarter was 1.16 compared to 1.13 in the second quarter of 2025, resulting in a positive foreign exchange impact on net sales of 1% in the three months ended June 30, 2026 as compared to the prior year period. Net sales for the six months ended June 30, 2026 increased 2% as compared to the six months ended June 30, 2025. The average dollar/euro exchange rate for the first six months of 2026 was 1.17 compared to 1.09 in the first six months of 2025, resulting in a positive foreign exchange impact on net sales of 3% in the six months ended June 30, 2026 as compared to 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 six months of the year. Excluding this effect, organic sales increased 4% in the second quarter of 2026 and 1% for the first six months of the year.

For European based operations, sales in the three months ended June 30, 2026 decreased 4%, compared to the corresponding period of the prior year, which included an organic decline of 5% partially offset by a 1% positive foreign exchange impact. Net sales in six months ended June 30, 2026 decreased 1%, compared to the corresponding period in the prior year, despite a 3% positive foreign exchange impact. Jimmy Choo sales grew 23% in the second quarter of 2026 and 8% in the first six months of 2026. The brand’s fragrances have continued to gain traction, particularly in the United States. This growth was driven by the continued success of the I Want Choo women’s franchise, launched in 2021, combined with the successful debut of the Jimmy Choo Man Parfum line launched earlier in 2026.  Coach fragrance sales declined 8%, in the second quarter of 2026, following a 42% increase in the prior year period. The brand’s sales rose 10% in the first half of 2026 compared to the prior year period driven by strong performance in the United States, its primary market, continued demand across most existing lines, and by the launch of new extensions in the Coach Women and Coach Man franchises earlier in 2026. Montblanc sales remained flat in the second quarter of 2026 and increased 6% in the first six months of 2026 compared to the prior year periods, driven by favorable exchange rates and the ongoing success of the Montblanc Explorer Extreme line and the strength of the Legend franchise, which was enhanced in the first quarter of 2026 with the launch of Montblanc Legend Elixir. We plan to launch a third franchise in 2027, reflecting the Company’s commitment to the brand’s growth through innovation. Fragrance sales of Lacoste declined 19% and 16% in the second quarter of 2026 and the first half of 2026 against a high base in the prior year periods in which sales grew 59% and 44%, respectively, driven by a series of highly successful innovation programs in 2025. Challenges in the Eastern Europe continued to impact the brand’s performance in 2026. We remain confident in the brand's medium and long-term potential ahead of several major initiatives planned for 2027 and 2028.

For United States based operations, sales in the three months ended June 30, 2026 increased 18% compared to the corresponding period of the prior year, which included a 1% positive foreign exchange impact, reflecting organic growth of 17% off a high base in 2025. The strong second quarter resulted in an increase in sales in the six months ended June 30, 2026 of 10% compared to the prior year period. This included 8% organic growth and a 2% favorable foreign exchange impact.  GUESS fragrance sales rose 10% and 11% in the second quarter and first half of 2026, respectively, compared to the prior year periods. This growth was driven by the ongoing success of the Iconic franchise, supported by the second quarter launch o

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/822663/000175392626000464/ipar-20251231.htm
Complete FY 2025 MD&A: /company/IPAR/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-10
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products. We manage our business in two segments, European based operations and United States based operations. Certain prestige fragrance products are produced and marketed by our European based operations through our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28% of Interparfums SA shares trade on the Euronext.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 68%, 65% and 65% of net sales for 2025, 2024 and 2023, respectively. We have built a portfolio of prestige brands, which include Boucheron, Coach, Goutal, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Longchamp, Moncler, Montblanc, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world. 

Through our United States based operations, we also produce and distribute fragrances and fragrance related products. United States based operations represented 32%, 35% and 35% of net sales in 2025, 2024 and 2023, respectively. These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, and Roberto Cavalli brands.

Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Coach, Montblanc, GUESS, Lacoste, Donna Karan/DKNY and Ferragamo brand names. This diversified portfolio of top brands represented 77%, 76% and 73% of total sales in 2025, 2024, and 2023, respectively.

As a percentage of net sales, product sales for the Company’s largest brands were as follows:

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["","","2025","","","2024","","","2023"],["Jimmy Choo","","","17","%","","","17","%","","","17","%"],["Coach","","","15","%","","","14","%","","","15","%"],["Montblanc","","","15","%","","","15","%","","","17","%"],["GUESS","","","12","%","","","12","%","","","12","%"],["Lacoste","","","7","%","","","6","%","","","\u2014"],["Donna Karan/DKNY","","","7","%","","","7","%","","","7","%"],["Ferragamo","","","4","%","","","5","%","","","5","%"]]
[[/GREPCENT_TABLE]]

Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season. In certain markets where we sell directly to retailers, seasonality is more evident. We primarily sell directly to retailers in France, the United States, and Italy.

We grow our business in two distinct ways. First, we grow by adding new brands to our portfolio, through new licenses or other arrangements, or outright acquisitions of brands. Second, we grow through the introduction of new products and by supporting new and established products through advertising, merchandising and sampling, as well as phasing out underperforming products, so we can devote greater resources to those products with greater potential. The economics of developing, producing, launching and supporting products influence our sales and operating performance each year. The introduction of new products may have some cannibalizing effect on sales of existing products, which we take into account in our business planning.

40

 Our business is not capital intensive, and it is important to note that we do not own manufacturing facilities. We act as a general contractor and source our needed components from our suppliers. These components are received and stored directly at our third party fillers or received at one of our distribution centers. For those components received at one of our distribution centers, based upon production needs, the components are subsequently sent to one of several third party fillers, which manufacture the finished product for us and then deliver them to one of our distribution centers.

As with any global business, many aspects of our operations are subject to influences outside our control. We believe we have a strong brand portfolio with global reach and potential. As part of our strategy, we plan to continue to make investments behind fast-growing markets and channels to grow market share. 

Our reported net sales are impacted by changes in foreign currency exchange rates as approximately 50% of net sales of our European based operations are denominated in U.S. dollars, while almost all costs of our European based operations are incurred in euro. We address certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates.

Recent Important Events

Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this 2025 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (“SEC”) for the year ended December 31, 2025.

Discussion of Critical Accounting Policies

We make estimates and assumptions in the preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ significantly from those estimates under different assumptions and conditions. We believe the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations. These accounting policies generally require our management’s most difficult and subjective judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Management of the Company has discussed the selection of significant accounting policies and the effect of estimates with the Audit Committee of the Board of Directors.

Long-Lived Assets

We evaluate indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more likely than not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 8.34%. The cash flow projections are based upon a number of assumptions, including future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded.

We believe that the assumptions we have made in projecting future cash flows for the evaluations described above are reasonable. However, if future actual results do not meet our expectations, we may be required to record an impairment charge, the amount of which could be material to our results of operations.

41

At December 31, 2025 indefinite-lived intangible assets aggregated $153.5 million. The following table presents the impact a change in the following significant assumptions would have had on the calculated fair value in 2025 assuming all other assumptions remained constant:

[[GREPCENT_TABLE]]
[["$ in millions","","Change","","","Increase (decrease) to fair value"],["Weighted average cost of capital","","","+10","%","","$","(37.5",")"],["Weighted average cost of capital","","","-10","%","","$","48.8"],["Future sales levels","","","+10","%","","$","31.5"],["Future sales levels","","","-10","%","","$","(31.5",")"]]
[[/GREPCENT_TABLE]]

Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. The cash flow projections are based upon a number of assumptions, including future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. In those cases where we determine that the useful life of long-lived assets should be shortened, we would amortize the net book value in excess of the salvage value (after testing for impairment as described above), over the revised remaining useful life of such asset thereby increasing amortization expense. We believe that the assumptions we have made in projecting future cash flows for the evaluations described above are reasonable.

In evaluating whether the Lanvin brand names and trademarks are definite or indefinite-lived, we applied the provisions of ASC topic 350-30-35-3 and concluded that the contraction provisions related to the repurchase option, originally exercisable in 2025 and amended to 2027, constrain the useful life of the Lanvin brand names and trademarks to the Company. Thus, the asset cannot be considered indefinite-lived. If exercised, Lanvin will have an obligation to pay the exercise price and the Company will be required to convey the Lanvin brand names and trademarks back to Lanvin. Although considered finite-lived due to the contractual provisions, in accordance with ASC topic 350-30-35-8, the asset is not being amortized as the exercise price (residual value) of the intangible asset exceeds its carrying value. 

If the repurchase option expires and is not exercised, then the Lanvin brand names and trademarks would be expected to contribute directly to the future cash flows of our Company and the useful life would be considered to be indefinite at such time.

Quantitative Analysis

During the three-year period ended December 31, 2025, we have not made any material changes in our assumptions underlying these critical accounting policies or to the related significant estimates. The results of our business underlying these assumptions have not differed significantly from our expectations.

42

While we believe the estimates we have made are proper and the related results of operations for the period are presented fairly in all material respects, other assumptions could reasonably be justified that would change the amount of reported net sales, cost of sales, and selling, general and administrative expenses as they relate to the provisions for anticipated sales returns, allowance for doubtful accounts and inventory obsolescence reserves. For 2025, had these estimates been changed simultaneously by 5% in either direction, our reported

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/IPAR/mda/fy2025/
All MD&A years: /company/IPAR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/IPAR/mda/fy2024/): filed 2025-03-11; accession 0001753926-25-000424 (https://www.sec.gov/Archives/edgar/data/822663/000175392625000424/ipar-20241231.htm)
- [FY 2023 MD&A](/company/IPAR/mda/fy2023/): filed 2024-02-27; accession 0001753926-24-000405 (https://www.sec.gov/Archives/edgar/data/822663/000175392624000405/g084061_10k.htm)
- [FY 2022 MD&A](/company/IPAR/mda/fy2022/): filed 2023-02-28; accession 0001753926-23-000213 (https://www.sec.gov/Archives/edgar/data/822663/000175392623000213/g083417_10k.htm)
- [FY 2021 MD&A](/company/IPAR/mda/fy2021/): filed 2022-03-01; accession 0001753926-22-000273 (https://www.sec.gov/Archives/edgar/data/822663/000175392622000273/g082622_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2844 Perfumes, Cosmetics & Other Toilet Preparations) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/IPAR.md · JSON record: /company/IPAR.json · verified financials: /company/IPAR/financials.json / /company/IPAR/financials.csv · machine TOC for the whole site: /llms.txt