Company: IPAR
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001753926-25-000738
Chunk: 46

Company: INTERPARFUMS INC
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 7
Chunk 46
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 to 41.5% for the three months ended March 31, 2024. The percentage of net sales remained relatively flat from the prior year period as promotional and advertising spending increased as a percentage of net sales by 0.3%, offset by scale benefits related to other fixed selling, general and administrative items which decreased selling, general and administrative expenses as a percentage of net sales by 0.2%.  
 
For European based operations, selling, general and administrative expenses increased 6.2% for the three months ended March 31, 2025 as compared to the corresponding period of the prior year, and represented 38.7% of net sales for the three months ended March 31, 2025, as compared to 39.1% for the three months ended March 31, 2024.  The decrease in selling, general and administrative expenses as a percentage of net sales resulted from a 0.3% reduction related to scale benefits related to fixed selling, general and administrative items, a 0.2% reduction related to royalty expense due to a favorable change in brand mix, partially offset by an increase of 0.1% related to higher advertising and promotional expenditures. For United States based operations, selling, general and administrative expenses increased 2.1% for the three months ended March 31, 2025, as compared to the corresponding period of the prior year, and represented 47.6% of net sales for the three months ended March 31, 2025, as compared to 46.0% for the three months ended March 31, 2024, respectively. The increase in selling, general and administrative expenses as a percentage of net sales was largely driven by the annualization impact of the investment in infrastructure and headcount made throughout 2024 to support the growth of the business leading to increased employee related costs as percentage of net sales of 1.7% as well as increased promotional and advertising spending as a percentage of net sales of 0.7%. These increases were offset by efficiencies related to other fixed selling, general and administrative items which decreased selling, general and administrative expenses as a percentage of sales by 0.7%. 
 
Promotion and advertising included in selling, general and administrative expenses aggregated $51.5 million for the three months ended March 31, 2025, as compared to $48.3