Company: IPAR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001753926-25-001236
Chunk: 13

Company: INTERPARFUMS INC
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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31, 2025, when Interparfums SA will begin commercial use of the fragrance brands. Furthermore, in December 2024, we renewed the Van Cleef & Arpels license agreement for an additional nine-year term, beginning January 1, 2025. In July 2023, we entered into a global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Roberto Cavalli brand. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. This license took effect in July 2023, and we began shipping products in February 2024.

In December 2022, we entered into a long-term global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Lacoste brand. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. This license took effect and products started to ship in January 2024.

Cash provided by operating activities aggregated $4.5 million for the six months ended June 30, 2025 compared to cash used in operating activities of $26.5 million for the six months ended June 30, 2024. For the six months ended June 30, 2025, working capital items used $108.9 million in cash from operating activities, as compared to $140.2 million in the 2024 period. From a cash flow perspective, accounts receivables are down 1% from year end 2024. The balance is reasonable based on second quarter 2025 sales levels and seasonality of the business. Day’s sales outstanding remained consistent at 74 days, up slightly from 72 days in the corresponding period of the prior year driven by changes in our channel mix, as we are still seeing strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of June 30, 2025 increased 5% from year end 2024 as is customary as we prepare for second half sales and holiday season orders. As compared to June 30, 2024, our inventory levels have decreased as we continue to work to manage down our inventory. We are doing this by increasing conversion of raw materials into finished goods resulting in finished goods making up 65.0% of our inventory levels at June 30, 2025 as compared