Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 55

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 7
Chunk 55
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 September 30, 2025 as compared to 8.0% and 8.1% of net sales for the corresponding periods of the prior year. This increase was primarily driven by unfavorable brand mix.
 
Income from Operations
 
As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 25.3% and 22.0% for the three and nine months ended September 30, 2025, respectively, as compared to 25.0% and 21.9% for the corresponding period of the prior year.
 
Other Income and Expense

Overall, other income and expense for the nine months ended September 30, 2025, was a loss of $7.7 million as compared to a loss of $7.1 million in the corresponding prior year period. One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $4.6 million in the first nine months of 2025 compared to $3.1 million in the first nine months of 2024. Another driver of this change is the impact of our gains and losses on marketable securities where we recorded a loss of $2.5 million in the first nine months of 2025 and a loss of $0.8 million in the first nine months of 2024. Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.8 million during the nine months ended September 30, 2025 as compared to a net interest expense of $2.9 million in the prior year period. 
 
Interest expense is primarily related to the financing of brand and licensing acquisitions, as well as our headquarters in Paris. Long-term debt including current maturities aggregated $196.9 million and $157.3 million as of September 30, 2025 and December 31, 2024, respectively. Interest expense was $5.1 million in the nine months ended September 30, 2025 compared to $5.3 million in the prior year period. 
 
We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Approximately 50% of net sales