Inter Parfums’ second quarter results were marked by a year-on-year sales decline, yet the market responded positively, reflecting confidence in the company’s ability to manage ongoing challenges. Management attributed the softer performance largely to slower momentum in U.S.-based operations and industry-wide destocking, while highlighting resilience in European segments and the solid performance of core brands like Jimmy Choo. CEO Jean Madar noted, “Momentum eased in the second quarter for us and many others in our industry,” with operational shifts and selective price increases helping to maintain demand.
Is now the time to buy IPAR? Find out in our full research report (it’s free).
Inter Parfums (IPAR) Q2 CY2025 Highlights:
- Revenue: $333.9 million vs analyst estimates of $334.5 million (2.4% year-on-year decline, in line)
- EPS (GAAP): $0.99 vs analyst expectations of $1.08 (8.1% miss)
- Adjusted EBITDA: $65.54 million vs analyst estimates of $62.53 million (19.6% margin, 4.8% beat)
- The company reconfirmed its revenue guidance for the full year of $1.51 billion at the midpoint
- EPS (GAAP) guidance for the full year is $5.35 at the midpoint, beating analyst estimates by 3.3%
- Operating Margin: 17.7%, down from 18.9% in the same quarter last year
- Market Capitalization: $3.70 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Inter Parfums’s Q2 Earnings Call
- Sydney A. Wagner (Jefferies) asked about promotional intensity and destocking trends. CFO Michel Atwood explained that retailers and distributors have become more prudent, leading to slower sell-in, but emphasized that underlying consumer demand remains healthy and Inter Parfums gained market share.
- Susan Kay Anderson (Canaccord Genuity) questioned whether tariffs were affecting retailer purchasing behavior. CEO Jean Madar clarified that while distributors are more cautious due to broader uncertainty, retailers are not directly impacted by tariffs, and emphasized recent positive trade developments.
- Susan Kay Anderson (Canaccord Genuity) also asked about the company’s capacity to add new brands. Madar replied that portfolio expansion remains a priority and Inter Parfums is open to further brand acquisitions, noting a natural cycle of adding and editing brands over time.
- Hamed Khorsand (BWS Financial) inquired about risks of revenue being pushed into later quarters due to retailer hesitation. Atwood acknowledged this risk, especially for gift set orders, but indicated that pent-up demand and market strength could lead to a surge in orders later in the year.
- Hamed Khorsand (BWS Financial) further asked about digital initiatives. Madar described tailored product formats for TikTok and Amazon, highlighting the potential for smaller-sized, lower-priced SKUs on social platforms and double-digit growth on Amazon, especially in Europe.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch for (1) the impact of tariff-driven price increases on retailer and distributor order patterns, (2) the reception of new product launches such as Solférino and upcoming Lacoste releases, and (3) the continued ramp-up of e-commerce initiatives across platforms like Amazon and TikTok. Execution on supply chain localization and successful inventory management during the holiday season will also be key indicators of Inter Parfums’ ability to navigate industry volatility.
Inter Parfums currently trades at $115.05, down from $118.29 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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