Interparfums, Inc. (IPAR)

Over the past six months, Interparfums, Inc. (IPAR) stock has experienced notable movements, including a share price decline of 31.55% from January 10, 2025, to January 8, 2026. In Q2 2025, the company reported a 2% decline in total sales, with US-based net sales dropping by 20%, attributed to global economic challenges and the discontinuation of the Dunhill fragrance license. Interparfums reported record net sales for the fourth quarter and full year ending December 31, 2024, with annual net sales rising 10% to $1.45 billion. The company has been actively expanding its portfolio, with the Lacoste license becoming one of the top-7 brands and securing new licenses for Roberto Cavalli and Longchamp. In November 2025, Interparfums announced its initial 2026 guidance, indicating a strategic outlook for the coming year.

Demand for Interparfums, Inc.'s products exhibits seasonality, with stronger sales during peak selling periods, such as holidays. The company's management anticipates that the first and second quarters may be more modest due to this seasonality and the timing of new product releases. The nature of fragrances as popular gifts also helps maintain sales, even during economic downturns.

Interparfums, Inc. is a global manufacturer, marketer, and distributor of prestige fragrance and cosmetics products, operating in the Consumer Staples sector. Founded in 1982, the company's business model is not capital intensive, as it primarily produces and distributes products under license agreements with brand owners, acting as a general contractor and relying on third-party fillers for manufacturing. Its diverse portfolio of major products and brands is segmented into European-based operations, which include brands such as Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, and Van Cleef & Arpels, and United States-based operations, which feature brands like Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Roberto Cavalli, and Ungaro.

Interparfums, Inc. manages its business through two primary operating segments: European-based operations and United States-based operations. The company boasts a global distribution network, selling its products in over 120 countries worldwide. North America is the largest market, accounting for approximately 39% of sales, followed by Europe (31%), Asia (15%), and the Middle East (8%).

In the past year, Interparfums, Inc. has generally maintained a strong brand reputation, driven by its focus on prestige fragrances and strategic partnerships. The company's ability to secure and renew long-term licensing agreements with internationally recognized brands like Lacoste and Roberto Cavalli has bolstered its standing. The successful launch of Lacoste Original in 2024 was enthusiastically received, reaffirming the brand's potential. The discontinuation of the Dunhill fragrance license contributed to a slump in US sales in Q2 2025. Sales for Guess and DKNY fragrances also saw declines in Q2 2025. Montblanc brand sales declined slightly in Q2 2024, though a significant increase was expected in the second half of 2024. Despite these specific brand challenges, the company's overall growth in 2024 was broad-based across its portfolio, and management expressed confidence in the market's strength and the resilience of its brand portfolio.

Interparfums, Inc.'s ownership structure is characterized by significant stakes held by its founders and large institutional investors. Major institutional owners include BlackRock, Inc., The Vanguard Group, Inc., Morgan Stanley, iShares Core S&P Small-Cap ETF, Westwood Holdings Group Inc, Charles Schwab Investment Management Inc, Dimensional Fund Advisors Lp, State Street Corp, First Trust Advisors Lp, and Victory Capital Management Inc. The company's co-founders, Jean Madar (Chairman and CEO) and Philippe Benacin (Vice Chairman and President of the European subsidiary), maintain substantial ownership, with their combined beneficial ownership often cited near the mid-40% range.