Interparfums, Inc. closed out 2025 with record net sales of $1.49 billion, representing a 2% increase year-over-year, alongside record diluted earnings per share of $5.24. These results exceeded the company's initial guidance for the year despite a complex landscape characterized by trade destocking, macroeconomic pressures, and the rising cost of U.S. tariffs.
Growth in 2025 was fueled by the sustained momentum of the company's top seven brands, which together account for approximately 77% of net sales and saw an annual increase of 5%. Coach led the charge with 15% annual growth driven by momentum across all lines, while Jimmy Choo saw a 6% increase. In their second full year under management, Lacoste and Roberto Cavalli surged 28% and 33%, respectively, with Lacoste sales of $108 million exceeding initial expectations. Regional performance was bolstered by gains in Central and South America at 11%, Western Europe at 5%, and North America at 3%, though Asia Pacific sales declined 4% due to distribution challenges in South Korea and India.
Consolidated gross margin for the year slipped slightly to 63.6%, compared to 63.9% in 2024, primarily due to $12.8 million in higher costs associated with U.S. tariffs. These tariffs represented a 0.9% headwind on sales. To protect profitability and achieve gross margin stability for 2026, management is deploying a multi-pronged strategy that includes price increases implemented in August 2025 and active cost-saving programs. The company also continues to optimize inventories, which declined by 6% in 2025, and leverage favorable brand and segment mixes to mitigate tariff impacts.
Looking ahead, the company has reaffirmed its 2026 guidance of $1.48 billion in sales and $4.85 in diluted earnings per share. The innovation pipeline remains robust for the coming year, featuring near-term launches for new brands including Annick Goutal, Off-White, and Longchamp. Additionally, the company is preparing for the rollout of its newly created luxury brand, Solférino, while maintaining its annual cash dividend at $3.20 per share.
