Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 8

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 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 United States based operations, selling, general and administrative expenses decreased 4.4% and 2.3% for the three and nine months ended September 30, 2025 as compared to the corresponding periods of the prior year, and represented 39.7% and 44.4% of net sales for the three and nine months ended September 30, 2025, as compared to 39.0% and 41.1% for the three and nine months ended September 30, 2024. The increase in selling, general and administrative expenses as a percentage of net sales was largely driven by lower sales in 2025 with the discontinuation of Dunhill in 2024.

Promotion and advertising included in selling, general and administrative expenses aggregated $65.5 million and $185.9 million for the three and nine months ended September 30, 2025, respectively, as compared to $66.8 million and $181.5 million for the corresponding periods of the prior year and represented 15.3% and 16.9% of net sales for the three and nine months ended September 30, 2025, respectively, as compared to 15.7% and 16.6% for the corresponding periods of the prior year. Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new product launches and to build brand awareness. We are also investing in line with anticipated sell out by our retailers, which we believe are higher than our reported sales. We believe that our promotion and advertising efforts have a beneficial effect on sales. As such, the Company is focused on increasing promotional and advertising spending to