Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 52

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 7
Chunk 52
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63.6% for the corresponding periods of the prior year. The Company continued to benefit from favorable segment, brand, and channel mix, in the nine months ended September 30, 2025 as compared to the prior year period. However, during the three months ended September 30, 2025 as compared to the prior year period, these favorable tailwinds as well as additional pricing actions that were taken at the back end of the quarter were not sufficient to offset the impacts of higher tariffs on our US imports, which represented $6 million.    
 
For European based operations, gross profit margin as a percentage of net sales was 66.0% and 66.6% for the three and nine months ended September 30, 2025, respectively, as compared to 66.2% and 66.3% for the corresponding period of the prior year. European based operations were negatively impacted by tariffs during the three months ended September 30, 2025 as compared to the prior year period, offset by pricing increases in the United States and brand and channel mix.  During the nine months ended September 30, 2025, favorable channel mix resulted in the increase in gross profit as percentage of sales compared to the prior year period.   

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INTERPARFUMS, INC. AND SUBSIDIARIES
For United States based operations, gross profit margin as a percentage of net sales was at 58.1% and 59.0% for the three and nine months ended September 30, 2025 respectively, as compared to 59.2% and 58.2% for the corresponding periods of the prior year. United States based operations saw a moderate decline due to the negative impact of tariffs as well as brand and channel mix in the three months ended September 30, 2025. The increase in the nine months ended September 30, 2025 was mainly driven by the discontinuation of Dunhill products, which were sold at lower margins in 2024 as is customary during sell-off periods.  
 
Generally, we do not bill customers for shipping and handling costs, which are included in selling, general and administrative expenses in the consolidated statements of income. As such, our Company’s gross profit may not be comparable to other companies, which may include these expenses as a component of cost of goods sold.