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• Net Sales: $339 million, a 5% increase from the first quarter of 2024; 7% growth on a like-for-like basis.

• Gross Margin: Expanded by 120 basis points to 63.7%.

• SG&A Expenses: Increased by 10 basis points to 41.6% of net sales.

• Operating Income: $75 million, a 10% increase from the prior year period; operating margin of 22%.

• Net Income (European Operations): Grew 7% to $48 million for the quarter.

• Net Income (US Operations): $9 million for the quarter, slightly below the prior year period.

• Cash and Cash Equivalents: $172 million as of March 31.

• Working Capital: $600 million.

• Accounts Receivable: Up 8% from year-end; days sales outstanding at 74 days.

• Operating Cash Flow: Improved by $45 million, reducing cash used in operating activities to $7 million.

• Dividend: Quarterly cash dividend of $0.80 per share to be paid on June 30, 2025.

• Full Year Guidance: Reaffirmed at $1.51 billion in net sales and EPS of $5.35 per share.

• Warning! GuruFocus has detected 4 Warning Signs with MFA.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Interparfums Inc (NASDAQ:IPAR) reported a 5% increase in net sales, or 7% on a like-for-like basis, indicating strong performance across its brand portfolio.

• The company successfully launched several new fragrances, contributing positively to its financial results.

• Interparfums Inc (NASDAQ:IPAR) has a robust distribution network and agile business model, allowing it to maintain competitive positioning and service levels.

• The company is strategically refining its brand portfolio, focusing on high-potential brands and exiting underperforming ones, which aligns with its long-term growth strategy.

• Interparfums Inc (NASDAQ:IPAR) has a strong balance sheet with $172 million in cash and cash equivalents, supporting its operational and strategic initiatives.

Negative Points

• The company faces potential challenges from tariffs, which could impact costs, although mitigation strategies are in place.

• Sales in the United States-based operations declined slightly due to the high bar set in the prior year, despite expectations for full-year sales gains.

• There is some exposure to foreign exchange fluctuations, which negatively impacted other income and expenses.

• The European market, particularly in France and Germany, showed signs of being more challenging with lower or negative growth in the first quarter.

• Interparfums Inc (NASDAQ:IPAR) remains cautious with its sales guidance due to ongoing macroeconomic volatility and uncertainties, including potential impacts from tariffs and foreign exchange.