IPAR

• Overall Business Performance

  • Management reported positive H1 2026 results, driven by broad brand momentum, disciplined execution, and a diversified geographic/brand portfolio that offset ongoing regional and macro challenges
  • The U.S. fragrance category remained the fastest growing beauty segment in H1 2026, supported by its status as an affordable indulgence and form of self-expression, with the market stabilizing after years of exceptional growth
  • Interparfums maintained a robust financial position while continuing to invest in new product and marketing initiatives

• Regional and New Market Expansion

  • The new Korean affiliate delivered an excellent start after years of uneven regional results
  • Interparfum partnered with a new distributor in India to reintroduce its full brand portfolio to the fast-growing Indian beauty market
  • Guess has become a top 15 fragrance brand in Australia, expanding the brand's regional footprint

• New Product and Brand Development

  • Several new fragrance line extensions launched in 2026 have delivered strong early performance, including Coach men/women extensions, Guess' Amore Napoli, Jimmy Choo Man Parfum, Ferragamo's Fiamma Assoluta, and Roberto Perali's Marvellous Cypress
  • The company is developing new fragrances for its emerging high-end brand, with new launches scheduled for 2027
  • Holy Oran Solferino expanded to 100 points of sale by the end of H1 2026, with an 11th fragrance for the initial collection launching in H2 2026
  • First fragrance launches for new partner brands Longchamp and Off-White are scheduled for 2027; management identifies Longchamp as having potential to become a 100 million dollar brand, and Off-White as a strategic step into the high-end fragrance category

• Digital and Omnichannel Strategy

  • Digital commerce was a key growth driver in Q2 2026, with particularly strong performance on Amazon and TikTok Shop
  • The company is adapting to evolving consumer behavior, including demand for fragrance layering, fragrance wardrobes, and AI-powered discovery, by delivering consistent immersive brand storytelling across all channels

• Supply Chain and Cost Management

  • New Section 301 tariffs do not meaningfully change Interparfum's cost structure, as existing rates were already aligned with the new round
  • The company is shortening supply lines by positioning distributors closer to point of sale to mitigate tariff impacts and improve proximity to consumers, alongside ongoing cost-saving initiatives

Management reaffirmed confidence in the company's ability to meet its full-year 2026 objectives, and stated that the H1 2026 performance demonstrates the business can grow through ongoing market turbulence. Management maintained a cautiously optimistic outlook for the second half of 2026, noting the resilience of the fragrance category and on-track performance across the brand portfolio, and remains focused on delivering long-term shareholder value.

Interparfums operates two geographic business segments: European-based operations (via 72% owned Interparfums SA) and United States-based operations. Consolidated net sales grew 2% year-over-year in both Q2 2026 and the first half of 2026, with organic sales growth of 4% in Q2 and 1% year-to-date after excluding geographic headwinds. By regional performance: North America (Interparfums' largest market) grew 5%; Asia-Pacific grew 14%; South America grew 15%; Western Europe declined 3%; Eastern Europe declined 7%; Middle East and Africa declined 24%. By brand performance: Coach grew 10% in H1 2026; Montblanc grew 6% in H1 2026; Jimmy Choo grew 8% in H1 2026 (23% in Q2); Guess grew 11% in H1 2026 (10% in Q2); Ferragamo grew 17% in H1 2026 (41% in Q2); Donna Cara-Diquiero grew 12% in H1 2026 (28% in Q2); Roberto Perali grew 8% in H1 2026; Lacrosse declined 16% in H1 2026. Travel retail contributed approximately 7% of total net sales, consistent with prior periods.

• Persistent soft consumer demand in Western Europe, and ongoing operational difficulties in parts of Eastern Europe have created negative pressure on regional results
  • Continuing conflict in the Middle East has driven a 24% decline in Middle East and Africa regional results, and disproportionately impacts Roberto Perali (the company's largest brand in the region)
  • Forward-looking performance is subject to general macroeconomic uncertainty and ongoing market turbulence that could impact actual results relative to projected outcomes
  • U.S. Section 301 tariffs on European manufactured goods create ongoing cost pressure that the company is working to mitigate, but could impact margins if not offset

No question and answer portion was included in the provided transcript.