- Record Annual Sales: 2025 sales hit $1.49 billion, with Q4 sales of $386 million, a 7% quarterly growth and a new annual record.
- Brand Growth Drivers: Cavalli (+33% year-over-year) and MCM (+40% Q4) led portfolio growth, driven by new collections and strategic rebranding.
- Geographic Performance: European operations grew 9% in Q4 (4% organic + 4% FX), while U.S. sales rose 4% in Q4 with stable net income of $69 million.
- Margin Pressures: Gross margin eroded 20 bps to 63.6% in 2025 due to tariffs, but net income rose 2% to $168 million ($5.24 EPS) despite operating income declines.
Segment Performance
European Based Operations delivered solid net sales growth in both the fourth quarter and full year of 2025, driven by 4% organic growth and 4% favorable FX impact. Gross margin for the full year was 66.1%, a 90 basis points erosion from 2024, mainly driven by tariffs. United States Based Operations achieved a 4% net sales growth in the fourth quarter and 2% organic growth, aided by a 2% favorable FX impact. Gross margin expanded by 40 basis points to 58.3% for the full year, driven by favorable brand mix, channel mix, and pricing actions.
Guidance and Outlook
The company is maintaining its outlook of $1.48 billion in sales and $4.85 in diluted earnings per share, despite a slowdown in market growth. The company believes that its strong innovation pipeline, supported by a long-standing relationship with global distributors and retailers, will drive consistent performance and long-term value. Analysts estimate next year's revenue growth at 8.1%, indicating a positive outlook for the company's future performance.
Valuation Metrics
Interparfums' current valuation metrics indicate a reasonable price for its earnings. The company's P/E Ratio is 19.84, P/B Ratio is 3.79, and P/S Ratio is 2.24. Additionally, the EV/EBITDA ratio is 11.44, and the Dividend Yield is 3.07%. These metrics suggest that the company's stock is fairly valued, considering its earnings growth and dividend yield.
Growth Prospects
The company has a significant pipeline of new blockbusters in 2027 across all of its key brands and is gearing up for a special year in 2027 with five major launches. The company's top 5 brands are its growth engines, and they are diverse across categories, price points, and gender. The rest of the portfolio is either stable or declining, with opportunities for exits. The company plans to add new licenses, such as Longchamp and Nautica, which have potential for growth.