Company: IPAR
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001753926-25-000424
Chunk: 13

Company: INTERPARFUMS INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 13
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 in further reduced traffic in our customers’ stores which may, in turn, result in reduced net sales to our retail store customers. Any further material reduction in our sales could have a material adverse effect on our business, financial condition and operating results. 

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Global Operations     
 
We are subject to risks related to our foreign operations, and a disruption in our operations or supply chain could adversely affect our business and financial results.
 
We operate on a global basis, with a substantial portion of our net sales and net income generated outside the United States, and we anticipate for the foreseeable future that a substantial portion of our net sales and net income will be generated outside the United States. A substantial portion of our cash, cash equivalents and short-term investments that result from these earnings remain outside the United States. As a company engaged in manufacturing and distribution on a global scale, we are subject to many risks and uncertainties, including:

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 changes in foreign laws, regulations and policies, including restrictions on trade, import and export license requirements, and tariffs and taxes, as well as changes in United States laws and regulations relating to foreign trade and investment; and      

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 industrial accidents, environmental events, strikes and other labor disputes, disruptions in supply chain or information technology, loss or impairment of key manufacturing sites or suppliers, product quality control, safety, as well as natural disasters, adverse weather conditions, social, economic and geopolitical conditions, such as terrorist attacks, war or other military action and other external factors over which we have no control.      
 
These risks could have a material adverse effect on our business, prospects, results of operations and financial condition.

Risks
Associated with Changes in International Trade Policies, Tariffs and
Cross-Border Operations
The US government has indicated its intent to
adopt a new approach to trade policy and in some cases to renegotiate, or
potentially terminate, certain existing bilateral or multi-lateral trade
agreements. It has initiated or is considering the imposition of tariffs on
certain foreign goods, including fragrances and fragrance related products.
Changes in US trade policy could result in one or more of US trading partners
adopting responsive trade policies making it more difficult or costly for us to
export our products to those countries. As an example, on February 1, 2025, the
U.S. government announced a 25% tariff on product imports from certain
countries, including Mexico and Canada, and 10% tariffs on product imports from
certain countries, including China. Our