Interparfums reports $68.2 million net income for Q3 2026

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Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June September 30, 2026 .

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(Registrant's telephone number, including area code)

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At August November 4, 2026 , there were 32,025,781 32,027,581 shares of common stock, par value $.001 per share, outstanding.

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Financial statements 88 changes

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The results of operations for the six nine months ended June September 30, 2026 , are not necessarily indicative of the results to be expected for the entire fiscal year.

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Accounts receivable, net allowances of $ 8,412 10,400 and $ 7,224 , respectively

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Property, equipment and leasehold improvements, net accumulated depreciation of $ 84,739 and $ 78,968 , respectively

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Trademarks, licenses and other intangible assets, net accumulated amortization of $ 127,779 and $ 122,448 , respectively

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Common stock, $ .001 par; authorized 100,000,000 shares; issued 41,104,625 41,105,825 and 41,100,125 and outstanding 32,025,781 32,026,981 and 32,067,285 shares at June September 30, 2026 and December 31, 2025, respectively

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Treasury stock, at cost, 9,078,844 and 9,032,840 shares at June September 30, 2026 and December 31, 2025, respectively ( 70,670 )

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Six Months Ended June 30,

Three Months Ended June September 30,

Nine Months Ended September 30,

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Gain (loss) on foreign currency

Interest and investment income loss

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Six Months Ended June 30,

Three Months Ended June September 30,

Nine Months Ended September 30,

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Three Months Ended June 30,

Six Months Ended June 30,

Common stock, beginning and end of period

Preferred Stock Shares

Class A Common Stock Shares

Additional Paid-in Capital beginning of period

Accumulated Other Comprehensive Loss Income

Treasury Stock Shares

Noncontrolling Interests

BALANCE-June 30, 2026

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Retained earnings, beginning of period

Reclassification Adjustment - See Note 1

Purchase/Transfer Purchase of subsidiary shares

Foreign currency translation adjustments

Transfer from other comprehensive income into earnings

Pension benefits, net of tax

Net derivative instrument loss, net of tax

BALANCE-September 30, 2026

Preferred Stock Shares

Class A Common Stock Shares

Additional Paid-in Capital end of period

Accumulated Other Comprehensive Loss Income

Treasury Stock Shares

Noncontrolling Interests

BALANCE-December 31, 2025

Shares issued upon exercise of stock options

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Retained earnings, end of period

Accumulated other comprehensive loss, beginning of period

Foreign currency translation adjustment, net of tax

Purchase of subsidiary shares

Reclassification Adjustment - see Note 1

Foreign currency translation adjustments

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Treasury stock, beginning of period

Treasury stock, end of period

Noncontrolling interest, beginning of period

Foreign currency translation adjustment, net of tax

BALANCE-September 30, 2026

INTERPARFUMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Preferred Stock Shares

Class A Common Stock Shares

Additional Paid-in Capital

Accumulated Other Comprehensive Loss end of period Income

Treasury Stock Shares

Noncontrolling Interests

BALANCE-June 30, 2025

Shares issued upon exercise of stock options

Share-based compensation

Purchase of subsidiary shares

Shares Forfeited / Deleted

Foreign currency translation adjustments

Transfer from other comprehensive income into earnings

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Net derivative instrument gain, loss, net of tax

BALANCE-September 30, 2025

Preferred Stock Shares

Class A Common Stock Shares

Additional Paid-in Capital

Accumulated Other Comprehensive Loss Income

Treasury Stock Shares

Noncontrolling Interests

BALANCE-December 31, 2024

Shares issued upon exercise of stock options

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Purchase of subsidiary shares from noncontrolling interests

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Noncontrolling interest, end of period

Foreign currency translation adjustments

Transfer from other comprehensive income into earnings

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and 8 more changes in the filing

Notes to the financial statements 23 changes

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.

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.

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.

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.

Financial Instruments:

Fair Value Hedges (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 $ 56.8 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 $ 136.3 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. We recorded a gain of $ 0.3 million and $ 1.0 million for the nine months ended September 30, 2026 and 2025, respectively. Gains and losses in derivatives not designated as hedges are included in loss on foreign currency in the accompanying consolidated statements of income. We recorded a loss of $ 0.7 million and a gain of $ 0.1 million for the nine months ended September 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 September 30 , 2026 , resulted in a net liability and is included in accrued expenses on the accompanying consolidated balance sheet.

At September 30 , 2026 and December 31, 2025, the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $ 42 million and USD $ 64 million, respectively, all of which have maturities of less than one year .

Net Investment Hedges (Non-Derivative Financial Instruments)

The Company is exposed to foreign currency risk associated with its net investment in certain foreign operations. The Company uses euro-denominated borrowings to manage a portion of the foreign currency exposure associated with its net investment in Interparfums SA ("IPSA"), whose functional currency is the euro.

As of September 30, 2026 , the Company had € 55.0 million ($ 62.5 million) of euro-denominated borrowings outstanding under its € 200 million senior secured credit facility. The Company designated € 55.0 million of these borrowings as nonderivative hedging instruments in net investment hedges of corresponding portions of the Company's net investment in IPSA.

Foreign currency transaction gains and losses attributable to the qualifying designated borrowings are recognized in the cumulative translation adjustment component of accumulated other comprehensive income rather than in current-period earnings. Such amounts remain in accumulated other comprehensive income until the applicable reclassification requirements associated with the hedged net investment are met.

For the three and nine months ended September 30, 2026 , the Company recognized $ 1.4 million of unrealized foreign currency gain associated with the designated net investment hedges in foreign currency translation adjustments in the accompanying statement of comprehensive income. No amounts were reclassified from accumulated other comprehensive income into earnings during the periods presented.

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MD&A 57 changes

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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% 74% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28% 26% 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 nine months ended June September 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 nine months ended June September 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, PUMA, and Roberto Cavalli brands.

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Six Months Ended June 30,

As a percentage of net sales for the six nine months ended June September 30, 2026 and 2025 , product sales for the Company's largest brands represented 81% 82% and 77%, 78%, respectively, with a split by brand as follows:

Nine Months Ended September 30,

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For the six nine months ended June September 30, 2026 , and 2025, Macy's, our top retail customer, accounted for approximately 10% of net sales. No one customer represented 11% and 10% or more of net sales, for the six months ended June 30, 2025. respectively.

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, and Korea.

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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 September 30, 2026 .

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Three and Six Nine Months Ended June September 30, 2026 as Compared to the Three and Six Nine Months Ended June September 30, 2025 (in millions)

Three Months Ended September 30,

Nine Months Ended September 30,

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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 of Iconic Blue , the newest men's extension within the franchise. Second quarter growth was also supported by the launch of the newest Amore extension, Amore Napoli. Donna Karan/DKNY fragrance sales increased 28% and 12% in the second quarter and first half of 2026, respectively, compared to the prior year periods. The Brand's sales growth reflected healthy consumer demand across product categories, fragrance franchises, and strengthening momentum across e-commerce channels. Ferragamo fragrance sales increased 41% and 17% in the second quarter and first half of 2026, respectively, compared to the prior year periods. This growth, helped by a weaker prior period comparison, was primarily driven by overall strength of the Signorina line supported by the successful launch of Signorina Romantica , and the Ferragamo line, supported by the launch of Ferragamo Sublime Leather . However, Roberto Cavalli fragrance sales declined 9% in the second quarter of 2026 against a very high base of 23% growth in the prior year period and a challenging macro-economic environment in the Middle East which is the brand's largest market. Despite this challenging macro environment, sales in the six month ended June 30, 2026 increased 8% compared to the prior year period, driven by new extensions launched earlier this year across multiple franchises as well as the ongoing success of last year's blockbuster launch of Serpentine .

With a rich lineup of fragrance extensions planned, we remain optimistic about the remainder of 2026. Looking ahead to 2027, we continue to be optimistic by the enhanced offerings within our current portfolio of brands, the introduction of new fragrances from recently acquired brands and licenses, and the selective pursuit of incremental brand opportunities. We have a series of blockbuster launches planned for 2027 and 2028, and with the proven strength of our business model, we remain well positioned to continue growing as we navigate a dynamic operating environment.

Net sales for the three months ended June September 30, 2026 increased 2 % from remained flat compared to the three months ended June September 30, 2025 . The average dollar/euro exchange rate for the current second third quarter was 1.16 1.15 compared to 1.13 1.17 in the second third quarter of 2025, resulting in a positive negative foreign exchange impact on net sales of 1% 0.4% in the three months ended June September 30, 2026 as compared to the prior year period. Net sales for the six nine months ended June September 30, 2026 increased 2 1 % as compared to the six nine months ended June September 30, 2025 . The average dollar/euro exchange rate for the first six nine months of 2026 was 1.17 1.16 compared to 1.09 1.12 in the first six nine months of 2025, resulting in a positive foreign exchange impact on net sales of 3% 2% in the six nine months ended June September 30, 2026 as compared to the prior year period. The diversity of our overall brand portfolio again showed its strength as we saw Sales by European based operations were especially strong, growth from several of our larger brands which helped to offset softness weaker performance by United States based operations following an exceptional period of growth in other brands and geographies. the second quarter 2026. The ongoing war in the Middle East which again weighed on our results, represented a headwind of 3% in the second quarter 1% and 2% for the first six months of the year. Excluding this effect, organic sales increased 4% in the second third quarter of 2026 and 1% for the first six nine months of the year. 2026, respectively.

For European based operations, sales in the three months ended September 30, 2026 increased 4%, compared to the corresponding period of the prior year, reflecting organic growth of 3% and a 1% contribution from new brands, partially offset by a 1% foreign exchange headwind. Coach fragrances have delivered outstanding performance so far in 2026, with sales rising by 23% and 15% during the third quarter and first nine months of 2026, respectively. The brand continues to benefit from its immense popularity in the United States, the strength of the established women's and men's lines, and the success of the two new line extensions launched earlier this year. Montblanc fragrance sales returned to growth, increasing 12% in the third quarter after flat second quarter sales, producing 8% growth for the first nine months of 2026, driven by the success of Montblanc Legend Elixir and Montblanc Explorer Infinite , launched in the first and third quarters, respectively. Jimmy Choo fragrance sales rose 1% in the third quarter of 2026, leading to 5% growth in the first nine months of 2026. The brand's sustained performance was driven by the continued success of the I Want Choo and Jimmy Choo Man franchises, supported by several line extensions launched over the past twelve months, including I Want Choo Midnight , which launched in the third quarter. Lacoste fragrance sales returned to growth in the third quarter, rising 4%, driven by Original Intense , the newest women's launch in the Original franchise. This improvement followed a challenging first half of 2026, which reflected a strong prior-year comparison due to strong innovation and softer conditions in Eastern Europe, where the brand has a strong presence. While year-to-date sales declined 9%, the third-quarter performance is encouraging as we look ahead to major developments planned for 2027 and beyond.

For United States based operations, sales in the three months ended September 30, 2026 decreased 7% compared to the corresponding period of the prior year, driven largely by supply chain disruptions that resulted in the delayed shipment of giftsets for select brands. These delays represented approximately $10 million in sales, which will now be recognized in the fourth quarter. Excluding this impact, sales would have been flat. Year-to-date sales grew 3% in 2026, driven by 2% organic growth and a favorable foreign exchange impact of 1%. Excluding the impact of the delayed giftset shipments, sales would have increased 6%. Fragrance sales of GUESS, our largest United States based brand, rose by 3% and 7% during the third quarter and first nine months of 2026, respectively. Growth was driven by the continuing success of the Iconic franchise which was enhanced by the launches of two new extensions earlier this year, as well as extensions launched for the Amore and Seductive franchises. Donna Karan/DKNY fragrance sales declined 9% during the third quarter following double digit growth in the second quarter of 2026. The third quarter sales decline was driven by innovation phasing and giftset shipment delays. Brand sales grew 4% in the first nine months of the year. Ferragamo fragrance sales declined 22% in the third quarter due to innovation phasing but were only down 2% on a year-to-date basis. The brand was impacted by challenging market conditions in Europe, which is the core region for the brand. Roberto Cavalli fragrance sales increased 4% and 6% during the third quarter and first nine months of 2026, respectively, despite a difficult macro-economic environment in the Middle East, the brand's largest market, and exceptionally high prior year growth comparisons. The brand's growth this year has been driven by the enduring popularity of last year's blockbuster Serpentine launch, as well as brand extensions released earlier in 2026, and the partnership with Kiko Milano.

Our global brand portfolio and diverse fragrances enable us to reach a wide range of consumers and pursue multiple avenues for growth, with strength across key brands and markets helping to offset softer demand elsewhere. We are aligning our product offerings and commercial strategies with evolving consumer preferences. We are investing in our future with expanded partnerships and new exclusive license agreements, while preparing for a promising 2026 holiday season and an exciting 2027, driven by a series of blockbuster launches and new brand additions. While some aspects of the market environment remain challenging, we are encouraged by the trajectory of our business and maintain a measured but positive outlook for the balance of the year, 2027 and beyond.

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Six Months Ended June 30,

Nine Months Ended September 30,

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Six Months Ended June 30,

In the six nine months ended June September 30, 2026, , net sales in our largest market, North America, rose 5 % 4% as compared to the prior year period, driven by continued market growth, the launch of several extensions, particularly for Coach, as well as successful marketing and advertising investments. while Sales in Western Europe declined 3% due to slower consumer demand, particularly in Germany and France. Our sales in Asia/Pacific increased by 14 % 12% driven by brand initiatives with Coach and Montblanc Jimmy Choo and expansion of GUESS in Australia Ferragamo and New Zealand. GUESS. Our new affiliate in Korea is off to a strong start, and after sluggish sales over the past few years, the business is growing again in the first half of 2026. Central and South America net sales increased 15 % 12% due to the success of women's and men's Coach franchises and the strength of the Montblanc Legend line as well as robust growth from Jimmy Choo. Our net sales in Eastern Europe decreased 7 % 15% in the six nine months ended June September 30, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste. The war in the Middle East has again led to a significant decline in our sales in the Middle East and Africa Region that was down 24%, weighting 19%, weighing significantly on our overall results.

Three Months Ended June September 30,

Nine Months Ended September 30,

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The Company's gross profit margin as a percentage of net sales was 65.5 % 67.1% and 65.3 % 66.0% for the three and six nine months ended June September 30, 2026, as compared to 66.2 % 63.5% and 65.0 % 64.4% for the corresponding period of the prior year. The increase was the result of favorable segment, brand and channel mix as well as lower than expected destruction costs of $9.6 million. These were partially offset by tariff impacts which represented a net an additional expense of $8.2 $11.9 million in the six nine months ended June September 30, 2026 as compared to the prior year period. Furthermore, as of June September 30, 2026, the company has received $8.7 $17.3 million in IEEPA tariff refunds, of which $6.9 $14.8 million have been recognized as a non-recurring reduction in cost of sales and $1.0 million in selling, general, and administrative expenses. Overall, the Company is not expecting approximately $17.6 any material additional refunds, however, there is still $1.4 million in of unrealized tariff refunds that will mostly make their way into cost of sales in the fourth quarter.

For European based operations, gross profit margin as a percentage of net sales was 67.4 % 70.8% and 68.7% for the three and six nine months ended June September 30, 2026, as compared to 68.3 % 66.0% and 66.9 % 66.6% for the corresponding period of the prior year, respectively. The decrease in the three months ended June 30, 2026 was the result of unfavorable brand and channel mix, as well as higher costs related to tariffs, partially offset by one time tariff refunds. The increase in the six nine months ended June September 30, 2026, was the result of price increases, favorable brand and channel mix, lower year- over-year destruction costs of $6.1 million, as well as $2.7 $9.6 million of IEEPA tariff refunds. These were partially offset by tariffs, which represented an additional expense of $4.5 $7.3 million in the six nine months ended June September 30, 2026 as compared to the prior year period.

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For United States based operations, gross profit margin as a percentage of net sales was 61.6 % 58.2% and 60.3 % 59.5% for the three and six nine months ended June September 30, 2026 respectively, as compared to 60.7 % 58.1% and 59.7 % 59.0% for the corresponding period of the prior year. Tariff refunds representing $4.2 $5.2 million as well as lower levels of than expected destructions helped offset unfavorable channel and product mix impacts as well as higher ongoing tariff costs.

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Six Months Ended June 30,

Three Months Ended June September 30,

Nine Months Ended September 30,

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The Company's selling, general and administrative expenses as a percentage of net sales were 51.2 % 39.7% and 47.4 % 44.4% for the three and six nine months ended June September 30, 2026 as compared to 48.5 % 38.2% and 45.0 % 42.4% for the three and six nine months ended June September 30, 2025. . The increase in selling, general and administrative expenses as a percentage of net sales in both for the quarter and six for the first nine month period resulted from marketing investments in brands, royalty higher employee related costs, growing ahead of sales driven by unfavorable royalty brand mix as well impacts and higher logistics costs related due to supply chain transitions and channel mix. higher costs of transportation. For the nine-month period, the increase was also driven by higher marketing investments.

For European based operations, selling, general and administrative expenses increased 7.5 % 5.4% and increased 8.1 % 7.2% for the three and six nine months ended June September 30, 2026, , respectively as compared to the corresponding period of the prior year, and represented 53.9 % 37.8% and 47.4 % 43.7% of net sales for the three and six nine months ended June September 30, 2026, , as compared to 48.2 % 37.2% and 43.4 % 41.1% for the three and six nine months ended June September 30, 2025. . The increase in expenses for both periods was largely driven by higher marketing expenses due to the timing of product launches in the second quarter of 2026 as well as investments behind the brands. Royalty costs also grew growing ahead of sales driven by due to unfavorable brand mix. Employee related costs expanded as we are building up our Korean subsidiary, and we also saw higher logistics costs related to increased warehouse fees and supply chain transitions and rising fuel costs. Marketing expenses also grew ahead of sales for the nine month period driven by product launch timing. For United States based operations, selling, general and administrative expenses increased 8.6 % were flat in the quarter and increased 5.6 % 3.6% for the three and six nine months ended June September 30, 2026, , respectively, as compared to the corresponding period of the prior year, below sales increases, and represented 44.2 % 42.9% and 46.0 % 44.8% of net sales for the three and six nine months ended June September 30, 2026, , as compared to 48.0 % 39.7% and 47.8 % 44.4% for the three and six nine months ended June September 30, 2025. . Despite higher selling, general and administrative investments overall, the decrease SG&A as a percentage of net sales is up in the three and six month periods were third quarter, driven by productivity gains behind the accelerated lower fixed cost absorption due to lower sales. growth, which were partially offset SG&A was also impacted by unfavorable brand mix on royalty expenses. royalties and higher logistics costs due to supply chain transitions and rising fuel costs.

Promotion and advertising included in selling, general and administrative expenses aggregated $77.2 $64.9 million and $128.8 $193.7 million for the three and six nine months ended June September 30, 2026, , respectively, as compared to $68.8 $65.5 million and $120.4 $185.9 million for the corresponding period of the prior year and represented 22.6% 15.1% and 18.8% 17.4% of net sales for the three and six nine months ended June September 30, 2026, , respectively, as compared to 20.6% 15.3% and 17.9% 16.9% for the corresponding period of the prior year. Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new product launches, new brands and to build brand awareness. We believe that our promotion and advertising efforts have a beneficial effect on sales, and as such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands. We are reinvesting the tariff refunds in order to protect our top line growth and set ourselves up for a successful 2027, as such, we anticipate that on a full year basis, promotion and advertising expenditures will approach our long term long-term target of approximately 21% of net sales.

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Royalty expense included in selling, general and administrative expenses aggregated $30.9 $36.7 million and $62.8 $99.5 million for the three and six nine months ended June September 30, 2026, , respectively, as compared to $27.7 $34.7 million and $55.8 $90.5 million for the corresponding period of the prior year. Royalty expense represented 9.1% 8.6% and 9.2% 8.9% of net sales for the three and six nine months ended June September 30, 2026 as compared to 8.3% 8.1% and 8.2% of net sales for the corresponding periods of the prior year. This increase was primarily driven by unfavorable brand mix.

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As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 14.4% 27.4% and 17.9% 21.6% for the three and six nine months ended June September 30, 2026 , respectively, as compared to 17.7% 25.3% and 20.0% 22.0% for the corresponding period of the prior year.

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Overall, other income and expense for the six nine months ended June September 30, 2026 , was a gain of $ 0.4 million effectively nil as compared to a loss of $ 6.7 7.7 million in the corresponding prior year period. The main drivers of the change are discussed in more detail below. These include the positive impact of the change in foreign currency where we recognized a loss gain of only $0.2 million in the first half nine months of 2026 compared to a loss of $2.4 $4.6 million in the first half nine months of 2025. Additionally, we had The improvement also reflected a gain on $3.1 million increase in interest income related to earned on cash and cash equivalents and short-term investments due to one-time loss of $4.4 $2.5 million and a reduction in 2025. Additionally, interest expense on borrowings of $0.5 decreased by $1.1 million.

Interest expense is primarily related to the financing of brand and licensing acquisitions, as well as our headquarters in Paris and our share repurchase program. Long-term debt including current maturities aggregated $142.8 $190.5 million and $176.0 million as of June September 30, 2026 and December 31, 2025, respectively. Interest expense was $2.6 $4.1 million in the six nine months ended June September 30, 2026 compared to $3.1 $5.1 million in the prior year period.

We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Approximately 50% of net sales of our European based operations are denominated in U.S. dollars. 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 (gain) loss on foreign currency on the accompanying consolidated income statements. Such gains and losses were immaterial in the three and six nine months ended June September 30, 2026 and 2025 .

Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities. Interest income was $3.0 $4.6 million in the six nine months ended June September 30, 2026 compared to $2.6 $4.4 million in the prior year period. Additionally, we recognized gains results benefited from $2.3 million decrease in losses on marketable equity securities, of $0.1 from $2.5 million in the six first nine months ended June 30, 2026 compared a loss of $3.4 2025 compared to $0.2 million loss in the six first nine months ended June 30, 2025 of 2026 .

Our consolidated effective tax rate was 24.2% 24.6% and 24.3% 23.5% for the six nine months ended June September 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. The effective tax rate for our European based operations remained flat at 25.4% was 25.5% and 24.4% for both the six nine months ended June September 30, 2026 and 2025 , respectively. The increase in taxes resulted from a $3 million favorable outcome to our mutual agreement procedure between the French and United States tax authorities in 2025 in which we were able to reclaim the tax assessment paid in France in 2023. The gain was offset by a $1 million one-time tax assessment included in the tax expense as a result of a tax audit conducted for the 2022 and 2023 tax years. The effective tax rate for United States based operations was 20.4% 20.3% for the six nine months ended June September 30, 2026 , as compared to 18.8% 20.0% for the corresponding period of the prior year. Our effective tax rate for United States based operations differs from the 21% statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign-derived deduction-eligible income, slightly offset by state and local taxes. 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. As of September 30, 2026 , the examination was ongoing. In addition, the Company's Italian subsidiary is currently undergoing an examination by the Italian tax authorities for the 2023 tax year.

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Six Months Ended June 30,

Three Months Ended June September 30,

Nine Months Ended September 30,

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Net income attributable to Interparfums, Inc. was $ 30.5 68.2 million and $ 73.9 142.1 million for the three and six nine months ended June September 30, 2026 , respectively, as compared to $ 32.0 65.8 million and $ 74.5 140.3 million for the corresponding period of the prior year.

Net income attributable to European based operations was increased to $ 22.8 75.2 million and $ 72.6 147.9 million for the three and six nine months ended June September 30, 2026 , as compared to $ 32.7 63.7 million and $ 80.9 144.6 million for the corresponding period of the prior year, while net income attributable to United States based operations increased to was $ 15.5 million and $ 23.9 39.4 million for the three and six nine months ended June September 30, 2026 , as compared to $ 9.6 20.8 million and $ 18.2 39.0 million for the corresponding period of the prior year. The fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.

The noncontrolling interest arises from our 72% 74% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company, as 28% 26% of Interparfums SA shares trade on the Euronext. Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 27% and 28% of European based operations net income for both the six nine months ended June September 30, 2026 and 2025 , respectively. Net profit margins attributable to Interparfums, Inc. for both the six nine months ended June September 30, 2026 and 2025 aggregated 10.8% and 11.1%, respectively. to 12.7%.

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Our conservative financial tradition has enabled us to amass significant cash balances. As of June September 30, 2026 , we had $211.3 $240.2 million in cash, cash equivalents and short-term investments, the majority of which are held in euros by our European based operations and is readily convertible into U.S. dollars. We have not experienced any liquidity issues to date, and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments.

As of June September 30, 2026 , working capital aggregated $664 $731 million. Approximately 74% 75% of the Company's total assets are held by European based operations, and approximately $280 $278 million of trademarks, licenses and other intangible assets are also held by European based operations.

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The Company hopes to continue to benefit from its strong financial position to potentially acquire one or more brands, either on a proprietary basis or as a licensee. In September 2026, we extended the Roberto Cavalli license for 20 years, extending the license through December 31, 2046. In March 2026, we entered into a 10-year license agreement with PUMA running through December 31, 2037. In January 2026, we entered into long-term global licensing agreements for the creation, development and distribution of fragrances and fragrance related products under the David Beckham and Nautica brands, effective April 1, 2028 and January 1, 2030, respectively. In December 2025, we extended the GUESS license for an additional 15 years, extending the license through December 31, 2048. In July 2025, our 72% majority owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036. Our rights under these licenses are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The first launch under our Longchamp license is expected in 2027. In June 2025, our 72% majority owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which was operating the Annick Goutal brand under an existing license agreement that expired on December 31, 2025, when Interparfums SA began commercial use of the fragrance brand. Additionally, in June 2025, we renewed the Coach license agreement for an additional five-year term, extending the license through June 30, 2031.

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Cash provided by operating activities aggregated $ 45.7 102.3 million for the six nine months ended June September 30, 2026 compared to $ 4.5 68.4 million for the six nine months ended June September 30, 2025 . For the six nine months ended June September 30, 2026 , working capital items used $61.7 $101.3 million in cash from operating activities, as compared to $108.9 $133.9 million in the 2025 period. From a cash flow perspective, accounts receivables receivable are down 3% up 20% from year end 2025 . The balance is reasonable based on 2026 sales levels and seasonality of the business. Days' sales outstanding decreased were up slightly to 73 days, from 74 90 days in for the corresponding period of nine months ended September 30, 2026 compared to 89 days for the prior year, driven by changes in our channel mix. nine months ended September 30, 2025. We continue to see strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of June September 30, 2026 increased 9% 10% from year end 2025 driven by the seasonality of the business. Despite foreign exchange headwinds, Our inventories are down significantly year over year with $376 million at June September 30, 2026 compared to $425 $388 million at June September 30, 2025 , translating to a reduction of 34 16 days inventory on hand as we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods. Operating cash flow also benefited in the six nine months ended June September 30 2026 from the receipt of $8.7 $17.3 million of IEEPA tariff refunds The Company has paid an additional $8.9 received, as well as $0.6 million of IEEPA tariffs which were not yet refunded at June 30, 2026, of which $8 million was received in July 2026. related interest.

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Cash flows used in financing activities in 2026 predominately reflect repayments net proceeds of debt, purchase of subsidiary shares from noncontrolling interest and payments of dividends to stockholders.

On August 12, 2026, the Company entered into a €200 million senior secured credit facility with a syndicate of lenders to finance the share repurchase program disclosed in Q2 2026 10-Q and related transaction costs. As of September 30, 2026, the Company had drawn €55.0 million under the facility and had €145.0 million of the remaining borrowing capacity available under the Facility Agreement.

Our short-term financing requirements are expected to be met by available cash on hand at June September 30, 2026 , and by short-term credit lines provided by domestic and foreign banks. The principal credit facilities for 2026 consist of $45 million in unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.1 million (€8 million) in credit lines provided by a consortium of international financial institutions. There was $2.8 $4.0 million of short-term borrowings outstanding pursuant to these facilities as of June September 30, 2026 and $9.4 million outstanding as of June September 30, 2025 .

During the third quarter of 2026, the Company invested approximately $49.5 million to acquire additional shares of Interparfums SA, its Paris-based subsidiary listed on Euronext Paris, under this program, increasing its ownership interest from approximately 72.5% to 74.3%.

In February 2025, our Board of Directors authorized an annual dividend to $3.20 per share, and in 2026 our Board of Directors maintained the annual dividend at $3.20 per share. The next quarterly cash dividend of $0.80 per share is payable on September 30, December 31, 2026 to shareholders of record on September December 15, 2026.

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Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the six nine months ended June September 30, 2026 ; however, we have already started to see the impacts of tariffs on our cost structure and had adjusted our pricing accordingly in 2025 . We continue to monitor for potential inflationary impacts as our suppliers potentially adjust their pricing as well.

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Market risk 1 change

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At June September 30, 2026 , we had foreign currency contracts in the form of forward exchange contracts of approximately USD $52 $42 million with maturities of less than one year. We believe that our risk of loss as the result of nonperformance by any of such financial institutions is remote.

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Controls and procedures 1 change

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Please see Item 9A. Controls and Procedures, "Evaluation of Disclosure Controls and Procedures" and "Remediation Plan," as contained in our 2025 annual report on Form 10-K as filed with the SEC (" 2025 Annual Report"), which are incorporated by reference in this quarterly report. As stated in our 2025 Annual Report, we believe that the actions set forth under "Remediation Plan," will collectively remediate the material weaknesses identified. During the second third quarter of 2026, management continued to execute its remediation plan, including business process walkthroughs and control design assessment, enhancing SOX governance and documentation process and validating the design of the remediated controls. However, our material weaknesses will not be considered remediated until the controls operate for a sufficient period of time and management has concluded, through testing, that the related controls are operating effectively. We will continue to monitor the design and effectiveness of these and other processes, procedures, and controls and will make any further changes management deems appropriate. The above disclosure is applicable to the evaluation of our disclosure controls and procedures for the second third quarter of 2026.

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Unregistered sales of stock 6 changes

In February 2025, our Board of Directors authorized the Company to continue repurchasing up to 130,000 shares throughout 2025, which was increased to 260,000 shares in April 2025. In February 2026, our Board of Directors authorized the Company to continue repurchasing up to 260,000 shares throughout 2026. In addition, in July 2026 the Board of Directors of our Company has authorized a share repurchase program to purchase outstanding shares in either our Company or its 72% majority owned subsidiary, Interparfums SA, which has its shares traded on the Euronext under the symbol "ITP," or both, and has authorized our Company to enter into a line of credit of up to the amount of $250 €200 million to be repaid over a maximum of 6 years to fund the share repurchase program. The terms Company has entered into a $227.1 million (€200 million) senior secured credit facility with a consortium of European banks consistent with the line authorization by the Board of credit are still to Directors. As of September 30, 2026, approximately 1.6 million shares of ITP had been purchased. There can be finalized. We cannot assure you no assurance that the entire repurchase program will be completed or that any minimum number of shares in our of the Company or Interparfums SA IPSA will be repurchased.

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Interparfums, Inc. Purchase of Interparfums SA Common Shares

Total Number of Shares Purchased

Average price paid per share

Total number of shares purchased as part of publicly announced plans or programs

Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs n/a

Other information 1 change

Item (c). During the second third quarter of 2026 , no director or officer has adopted or terminated either any " Rule 10b5-1 trading arrangement " or " non-Rule 10b5-1 trading arrangement ," as such terms are defined in the applicable regulation.

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Exhibits 1 change

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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on the 4th day of August November 2026.

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