Interparfums Q2 Earnings Miss Estimates, Sales Decline 2% Y/Y

Interparfums, Inc. (IPAR) reported second-quarter 2025 results, wherein both top and bottom lines missed the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.Management highlighted that U.S. demand, which accounted for 35% of second-quarter sales, remains strong despite a slowdown in global fragrance market growth. The company expressed confidence in its ability to navigate current challenges, supported by the strong brand portfolio and extensive distribution network. While headwinds affected second-quarter performance and are expected to persist in the second half, management believes that proactive measures will enable it to fully address these challenges by 2026.IPAR’s Quarterly Performance: Key InsightsInterparfums posted quarterly earnings of 99 cents per share, which decreased 13% from $1.14 reported in the prior-year period. The metric missed the Zacks Consensus Estimate, which was pegged at $1.10 per share.Interparfums, Inc. Price, Consensus and EPS Surprise Interparfums, Inc. price-consensus-eps-surprise-chart | Interparfums, Inc. QuoteThe company reported consolidated net sales of $334 million, which decreased 2% from $342 million posted in the year-ago period. The metric missed the Zacks Consensus Estimate of $341 million.Insight Into IPAR’s Costs & Margins PerformanceInterparfums reported a consolidated gross margin of 66.2%, representing a 170-basis-point (bps) increase compared with the prior-year period. This improvement was primarily driven by a favorable segment and brand mix.During the quarter, selling, general and administrative expenses were 48.5% of net sales, an increase of 290 bps year over year. This rise was caused by higher levels of advertising and promotional expenditures in 2025. These expenditures represented 20.6% of net sales for the second quarter of 2025.The company’s operating income was $59.2 million. The operating margin was 17.7%, down from 18.9% reported in the year-ago quarter.IPAR’s Financial Health SnapshotThis Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $151.5 million, long-term debt (excluding the current portion) of $153.1 million and total equity of $1,056.8 million.The company announced a cash dividend of 80 cents per share, payable on Sept. 30, 2025, to its shareholders of record as of Sept. 15.What to Expect From IPAR in 2025Management noted that the first-half sellout was strong, but sales fell slightly short due to ongoing trade destocking. Looking to the second half, the company remains cautious given macroeconomic uncertainties, including tariff-related supply-chain impacts, softer demand in some international markets and currency volatility. The company reaffirmed its 2025 guidance, estimating net sales of $1.51 billion and earnings per share of $5.35.Interparfums stock has lost 1.1% in the past three months compared with the industry’s decline of 0.3%.Image Source: Zacks Investment ResearchTop-Ranked BetsRalph Lauren Corporation (RL) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for RL’s current fiscal-year sales and earnings indicates growth of 3.8% and 12.7%, respectively, from the year-ago reported figures. Ralph Lauren delivered a trailing four-quarter average earnings surprise of 9%.Revolve Group, Inc. (RVLV) operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It carries a Zacks Rank #2 at present. Revolve Group delivered a trailing four-quarter average earnings surprise of 63.4%.The Zacks Consensus Estimate for RVLV’s current fiscal-year revenues implies growth of 5.4% from the year-ago actuals.Savers Value Village, Inc. (SVV) sells second-hand merchandise in retail stores in the United States, Canada and Australia. It has a Zacks Rank of 2 at present. SVV delivered an earnings surprise of 22.1% in the trailing four quarters, on average.The Zacks Consensus Estimate for Savers Value Village’s current fiscal-year sales indicates growth of 9% from the year-ago reported figures.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL): Free Stock Analysis Report Interparfums, Inc. (IPAR): Free Stock Analysis Report Revolve Group, Inc. (RVLV): Free Stock Analysis Report Savers Value Village, Inc. (SVV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks