Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 53

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 7
Chunk 53
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Selling, general and administrative expenses

Three Months Ended

Nine Months Ended

     (In millions)

September 30,

September 30,

2025

2024

2025

2024

 European based operations 

Selling, general and administrative expenses
 
$
109.8

$
108.1

$
321.7

$
306.6

Selling, general and administrative expenses as a percentage of net sales

37.2
%

38.3
%

41.1
%

41.5
%

United States based operations

Selling, general and administrative expenses
 
$
54.5

$
57.0

$
145.4

$
148.9

Selling, general and administrative expenses as a percentage of net sales

39.7
%

39.0
%

44.4
%

41.1
%

The Company’s selling, general and administrative expenses as a percentage of net sales were 38.2% and 42.4% for the three and nine months ended September 30, 2025 as compared to 38.9% and 41.8% for the three and nine months ended September 30, 2024. The decrease in the quarter was driven by the phasing of promotional and advertising activities. The increase in the first three quarters of the year was largely driven by increased overall spending on promotional and advertising activities and increased employee related costs, as well as negative foreign exchange impacts.    
 
For European based operations, selling, general and administrative expenses increased 1.5% and 4.9% for the three and nine months ended September 30, 2025, respectively as compared to the corresponding periods of the prior year, and represented 37.2% and 41.1% of net sales for the three and nine months ended September 30, 2025, as compared to 38.3% and 41.5% for the three and nine months ended September 30, 2024.  A significant portion of our expense in European based operations are denominated in euros, resulting in costs as reported in USD. The decrease in selling, general and administrative expenses as a percentage of net sales in the third quarter and first nine months of the year was driven by the expiration of the 2022 free-share plan and distribution of shares in France in the second quarter resulting in the decrease in stock compensation amortization. For