Inter Parfums, Inc. Q1 FY2026 earnings call

• Consolidated sales up 2% on reported basis, growth from US and European ops despite mixed portfolio. North America up 7%, Central and South America up 23%, Western Europe flat, Eastern Europe down 12%, Middle East and Africa down 12%, Asia-Pacific down 7%. - Key brands: Coach up 30%, Montblanc up 14%, Guess up 11%, Roberto Cavalli up 32%, Lacoste down 12%, Danakaran DKNY down 3% but BeDelicious score rebounded 16%. - Expanding portfolio with new brands: resumed distribution of Annick Goutal, developing for Longchamp and Off-White, announced licenses with David Beckham and Nautica. - Travel retail represents ~7% of net sales, performing well. - ESG profile strengthened, received third consecutive ESG rating increase from MSCI to BBB.

Consolidated sales were $345 million, up 2% on reported basis. Organic sales declined 3% (excluding foreign exchange and Middle East conflicts). European-based operations: net sales up 2%, organic down 4%, gross margin 67.4% (up 190bps), net income $50 million (up 4%). US-based operations: net sales up 2%, organic flat, gross margin 58.9% (essentially flat), net income $8 million (broadly flat).

• Maintaining full-year outlook: sales ~$1.48 billion, diluted earnings per share $4.85. - EPS guidance doesn't include potential tariff refunds. - Anticipate return to stronger growth in 2027 driven by innovation and new brands. - Monitoring tariff refunds possibility, but not included in 2026 outlook.

• Macro and regional headwinds affecting sales in certain regions like Eastern Europe, Middle East and Africa, Asia-Pacific. - Tariffs impacting cost structure. - Macroeconomic and geopolitical uncertainty affecting consumer spending behavior. - Operational difficulties in certain markets disproportionately impacting some brands.

Q: About gross margin structural vs quarter specific and portfolio's ability to capture above category growth.

A: Gross margin mix to normalize, bigger brands doing better, looking at smaller brands, US market strong.

Q: On Europe and newness.

A: Europe mixed, Latin America doing well, Asia temporary impact, 2026 not big for blockbusters, 2027 has big launches.

Q: On pricing and AMP.

A: Prudent with pricing, AMP ROI constant optimization.

Q: On Lacoste and orders.

A: Lacoste will recover, orders broadly in line with expectations, Q2 impacted by Middle East.

Q: On direct to retail.

A: Happy with distributor partners, not looking to convert to subsidiaries currently