Company: IPAR
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001753926-25-000424
Chunk: 19

Company: INTERPARFUMS INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 19
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, 2024. We cannot be certain that the measures we
may take in the future will be sufficient to remediate the control deficiencies
that led to our material weaknesses in our internal control over financial
reporting or that they will prevent or avoid potential future material
weaknesses. The effectiveness of our internal control over financial reporting
is subject to various inherent limitations, including cost limitations,
judgments used in decision making, assumptions about the likelihood of future
events, the possibility of human error and the risk of fraud. If we are unable
to remediate our existing or any future material weaknesses in our internal
control over financial reporting, our ability to record, process or report
financial information accurately and to prepare financial statements in an
accurate and timely manner could be adversely affected, which could subject us
to litigation or investigations requiring management resources and payment of
legal and other expenses, negatively affect investor confidence in our
financial statements and adversely impact our stock price. 

Our business is subject to seasonal variability.
 
Our business is somewhat seasonal due to the timing of shipments to our customers, which are weighted to the second half of the year. Accordingly, our financial performance, sales, working capital requirements, cash flow and borrowings generally experience variability during the third and fourth quarters.
  
Our business is subject to inflationary pressures.
 
Despite significant inflationary pressures that started during 2022 and continued into 2024, affecting many aspects of our business, especially increasing component costs and shipping, we were able to offset the effects of inflation during 2022 by increasing the prices of our products. Although inflation was a major factor in 2023 and continued to have impacts in 2024, we increased our sales prices to mitigate its impact to some degree in prior years and implemented cost saving efforts to mitigate these impacts in the current year. However, we may not be able to continue increasing our prices indefinitely without causing a reduction in the number of consumers with sufficient disposable income to buy certain of our fragrance products, which could have a material adverse effect on our business.

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Fragrance Markets     
 
The success of our products is dependent on public taste. 
 
Our revenues are substantially dependent on the success of our products, which depends upon, among other matters, pronounced and rapidly changing public tastes, factors which are difficult to predict and over which we have little, if any, control. In addition, we have to develop successful marketing, promotional and sales programs in order to sell our fragrances