Interparfums Inc: Form 10-Q for the period ended Jun 30, 2025

Forward Looking Information

Statements in this report which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums’ annual report on Form 10-K for the fiscal year ended December 31, 2024, and the reports Interparfums files from time to time with the Securities and Exchange Commission (“SEC”). Interparfums does not intend to and undertakes no duty to update the information contained in this report.

Overview

We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products. We manage our business in two segments, European based operations and United States based operations. Certain prestige fragrance products are produced and marketed by our European based operations through our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28% of Interparfums SA shares trade on the Euronext.

We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 72% and 68% of net sales for the six months ended June 30, 2025 and 2024, respectively. We have built a portfolio of prestige brands, which include Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world.

Through our United States based operations, we also produce and distribute fragrance and fragrance related products. United States based operations represented 28% and 32% of net sales for the six months ended June 30, 2025 and 2024, respectively. These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli brands.

Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Coach, Montblanc, GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names.

As a percentage of net sales, product sales for the Company’s largest brands represented 77% and 74%, respectively, with a split by brand as follows:

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Quarterly sales fluctuations are influenced by the timing of new product launches as well as the third and fourth quarter holiday season. In certain markets where we sell directly to retailers, seasonality is more evident. We primarily sell directly to retailers in France, the United States, and Italy.

We grow our business in two distinct ways. First, we grow by adding new brands to our portfolio, through new licenses or other arrangements, or outright acquisitions of brands. Second, we grow through the introduction of new products and by supporting new and established products through advertising, merchandising and sampling, as well as phasing out underperforming products, so we can devote greater resources to those products with greater potential. The economics of developing, producing, launching and supporting products influence our sales and operating performance each year. The introduction of new products may have some cannibalizing effect on sales of existing products, which we take into account in our business planning.

Our business is not capital intensive, and it is important to note that we do not own manufacturing facilities. We act as a general contractor and source our needed components from our suppliers. These components are received and stored directly at our third party fillers or received at one of our distribution centers. For those components received at one of our distribution centers, based upon production needs, the components are subsequently sent to one of several third party fillers, which manufacture the finished product for us and then deliver them to one of our distribution centers.

As with any global business, many aspects of our operations are subject to influences outside our control. We believe we have a strong and well diversified brand portfolio with global reach and potential. As part of our strategy, we plan to continue to make investments behind fast-growing markets and channels to grow market share.

Our reported net sales are impacted by changes in foreign currency exchange rates as approximately 50% of net sales of our European based operations are denominated in U.S. dollars, while almost all costs of our European based operations are incurred in euro. We address certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates.

Recent Important Events

Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

Discussion of Critical Accounting Policies

Information regarding our critical accounting policies can be found in our 2024 Annual Report on Form 10-K filed with the SEC.

Results of Operations

Three and Six Months Ended June 30, 2025 as Compared to the Three and Six Months Ended June 30, 2024

Net Sales:

(in millions)

*n/a = not applicable

Net sales for the three months ended June 30, 2025 decreased 2% from the three months ended June 30, 2024. Organic sales for the three months ended June 30, 2025, which exclude the impact of foreign exchange and the discontinuation of the Dunhill license, also decreased 2% compared to the prior year period. The average dollar/euro exchange rate for the current second quarter was 1.13 compared to 1.08 in the second quarter of 2024 resulting in an increase of net sales of 2% in the three months ended June 30, 2025 as compared to the prior year period. Net sales for the six months ended June 30, 2025 increased 1% as compared to the six months ended June 30, 2024. Organic sales for the six months ended June 30, 2025 increased 2.5% as compared to the prior year period. For the six months ended June 30, 2025, the impact of exchange rates on net sales was an increase of 0.4% as compared to the prior year period.

For European based operations, sales in the three months ended June 30, 2025 increased 6% on a reported basis and 4% on an organic basis, compared to the corresponding period of the prior year, driven by Lacoste and Coach, which grew by 59% and 42%, respectively. These increases were driven by continued strong performance in these brand's established lines, plus the successful launches of Coach for Men Eau de Parfum and Coach Women Gold. Jimmy Choo fragrance sales declined 20% compared to a high base in the corresponding period of the prior year. However, brand sales increased 5% for the six months ended June 30, 2025 compared to the corresponding period of the prior year due to the introduction of Jimmy Choo Man Extreme in the first quarter and the continued popularity of the I Want Choo fragrance family. Sales of Montblanc were broadly flat in the second quarter, but are expected to increase through the balance of 2025 with the recent launch of Explorer Extreme. For the six months ended June 30, 2025, European based operations sales increased 7% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.

For United States based operations, sales in the three months ended June 30, 2025 decreased 20% compared to the corresponding period of the prior year as a result of the discontinuation of the Dunhill license which had an 8% negative impact. With the phase-out of Dunhill fragrances completed in August of 2024, we expect minimal impact on a quarter-over-quarter comparison going forward. GUESS and Donna Karan/DKNY fragrance sales in the three months ended June 30, 2025 declined by 8% and 13%, respectively, compared to the corresponding period of the prior year, driven by the timing of product launches and tariff generated supply chain disruptions. Roberto Cavalli fragrance sales continue to benefit from our integration, growing 23% and 25% in the three and six months ended June 30, 2025, respectively, compared to the corresponding periods in the prior year. MCM sales rose by 3% in the second quarter compared to the second quarter of 2024 with the continued success from the launch of the MCM Collection. For the six months ended June 30, 2025, United States based operations sales decreased 12% on a reported basis and 6% on an organic basis, compared to the corresponding period of the prior year.

While the second quarter saw a slight overall decline, we are confident in our future as we look forward to executing our plans for the remainder of 2025. A new blockbuster, Roberto Cavalli Serpentine, began limited distribution in the second quarter and will expand throughout the remainder of the year. We have a large number of brand extensions across many of our brands launching throughout the year, including a new flanker for Lacoste Original and a new flanker for I Want Choo in the second half of 2025. Additionally, extensions are set to debut for Donna Karan Cashmere Collection, GUESS Bella Vita, and DKNY 24/7. While the pace of growth in the fragrance market is starting to slow down, the power of our diverse brand portfolio, in combination with our agile operating model, should help us gain market share.

INTERPARFUMS, INC. AND SUBSIDIARIES

(In millions)

In the six months ended June 30, 2025, net sales in our largest market, North America, rose 7% as compared to the prior year period, followed by an increase in Western Europe of 3%. Our sales in Asia/Pacific decreased by 12% driven by a higher base from 2024 in Australia and distribution disruptions in South Korea in the current year while the overall trend remains positive in China and Japan. Our net sales in Eastern Europe were also robust, up 14% in the six months ended June 30, 2025 as compared to the prior year period when we faced temporary sourcing constraints. Central and South America net sales increased 7%. Middle East and Africa net sales declined 19% primarily due to a disproportionate impact from the exit of the Dunhill license due to its significant presence. Excluding the impact of Dunhill, Middle East and Africa net sales declined 6% due to the impacts of the conflicts in the region and a reduction in the number of doors in many markets that are now more focused on higher-end luxury fragrances.

(in millions)

The Company’s gross profit margin as a percentage of net sales was 66.2% and 65.0% for the three and six months ended June 30, 2025 as compared to 64.5% and 63.5% for the corresponding period of the prior year. The increase in the three and six months ended June 30, 2025 as compared to the prior year period was driven by favorable segment and brand mix in the current year.

For European based operations, gross profit margin as a percentage of net sales was 68.3% and 66.9% for the three and six months ended June 30, 2025, respectively, as compared to 68.8% and 66.3% for the corresponding period of the prior year. European based operations were negatively impacted by brand and channel mix during the three months ended June 30, 2025 as compared to the prior year period, while brand and channel mix were favorable overall in the first half of 2025.

For United States based operations, gross profit margin as a percentage of net sales was at 60.7% and 59.7% for the three and six months ended June 30, 2025 respectively, as compared to 56.5% and 57.5% for the corresponding periods of the prior year. The increase in both periods 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.

(In millions)

The Company’s selling, general and administrative expenses as a percentage of net sales was 48.5% and 45.0% for the three and six months ended June 30, 2025 as compared to 45.6% and 43.6% for the three and six months ended June 30, 2024. The increase was largely driven by increased spending on promotional and advertising activities and increased employee related costs in both the second quarter and first half of 2025 as compared to the prior year periods.

For European based operations, selling, general and administrative expenses increased 7% for both the three and six months ended June 30, 2025 as compared to the corresponding periods of the prior year, and represented 48.2% and 43.4% of net sales for the three and six months ended June 30, 2025, as compared to 47.8% and 43.4% for the three and six months ended June 30, 2024. The increase in selling, general and administrative expenses as a percentage of net sales in the second quarter resulted from an increase in employee related costs due to a one time adjustment resulting from the ending of the 2022 free-share plan in France. For United States based operations, selling, general and administrative expenses decreased 3.9% and 1.0% for the three and six months ended June 30, 2025 as compared to the corresponding periods of the prior year, and represented 48.0% and 47.8% of net sales for the three and six months ended June 30, 2025, as compared to 39.8% and 42.5% for the three and six months ended June 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 $68.8 million and $120.4 million for the three and six months ended June 30, 2025, respectively, as compared to $66.4 million and $114.7 million for the corresponding periods of the prior year and represented 20.6% and 17.9% of net sales for the three and six months ended June 30, 2025, respectively, as compared to 19.4% and 17.2% 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 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 support the continued success of our brands. Additionally, we continue to develop and implement omnichannel concepts and compelling content to deliver an integrated consumer experience. Long term, we continue to anticipate that on a full year basis, promotion and advertising expenditures will aggregate approximately 21% of net sales.

Royalty expense included in selling, general and administrative expenses aggregated $27.7 million and $55.8 million for the three and six months ended June 30, 2025, respectively, as compared to $27.0 million and $54.2 million for the corresponding periods of the prior year. Royalty expense represented 8.3% of net sales for both the three and six months ended June 30, 2025 as compared to 7.9% 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 17.7% and 20.0% for the three and six months ended June 30, 2025, respectively, as compared to 18.9% and 19.9% for the corresponding period of the prior year.

Other Income and Expense

Overall, other income and expense for the six months ended June 30, 2025, was a loss of $6.7 million as compared to a loss of $1.5 million in the corresponding prior year period. The main drivers of this change are discussed in more detail below. One of the main drivers is the impact of our gains and losses on foreign currency where we recognized a loss of $2.4 million in the first half of 2025 compared to a gain of $0.3 million in the first half of 2024. Another driver of this change is the impact of our gains and losses on marketable securities where we had recorded a loss of $3.4 million in the first half of 2025 and a loss of $0.6 million in the first half of 2024. Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.1 million during the six months ended June 30, 2025 as compared to a net interest expense of $0.8 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 $210.0 million and $157.3 million as of June 30, 2025 and December 31, 2024, respectively. Interest expense was $3.1 million in the six months ended June 30, 2025 compared to $3.5 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 of our European based operations are denominated in U.S. dollars. Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements. Such gains and losses were immaterial in the three and six months ended June 30, 2025 and 2024.

Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities. Interest income was $2.6 million in the six months ended June 30, 2025 compared to $1.7 million in the prior year period. As of June 30, 2025, short-term investments also include approximately $3.5 million of marketable equity securities of other companies in the luxury goods sector. In the second quarter of 2025, the Company had unrealized losses on these securities $1.1 million compared to unrealized gains of $1.5 million for the corresponding period of the prior year.

Income Taxes

Our consolidated effective tax rate was 24.3% and 23.9% for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate for European based operations was 25.4% and 25.0% for the six months ended June 30, 2025 and 2024, respectively, while the effective tax rate for United States based operations was 18.8% for the six months ended June 30, 2025, as compared to 19.9% for the corresponding period of the prior year. Our effective tax rate for United States based operations differs from the 21% statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign derived intangible income, slightly offset by state and local taxes. Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate.

Net Income

(In thousands)

Net income attributable to Interparfums, Inc. was $32.0 million and $74.5 million for the three and six months ended June 30, 2025, respectively, as compared to $36.8 million and $77.9 million for the corresponding period of the prior year.

Net income attributable to European based operations was $32.7 million and $80.9 million for the three and six months ended June 30, 2025, as compared to $33.2 million and $78.1 million for the corresponding periods of the prior year, while net income attributable to United States based operations was $9.6 million and $18.2 million the three and six months ended June 30, 2025, as compared to $15.2 million and $24.8 million the corresponding periods of the prior year. The significant fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses.

The noncontrolling interest arises from our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28% of Interparfums SA shares trade on the Euronext. Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 28% of European based operations net income for both the six months ended June 30, 2025 and 2024. Net profit margins attributable to Interparfums, Inc. for the six months ended June 30, 2025 and 2024 aggregated 11.1% and 11.7%, respectively.

Liquidity and Capital Resources

Our conservative financial tradition has enabled us to amass significant cash balances. As of June 30, 2025, we had $205.4 million in cash, cash equivalents and short-term investments, the majority of which are held in euro by our European based operations and is readily convertible into U.S. dollars. We have not experienced any liquidity issues to date, and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments.

As of June 30, 2025, working capital aggregated $654.0 million. Approximately 74% of the Company’s total assets are held by European based operations, and approximately $298.3 million of trademarks, licenses and other intangible assets are also held by European based operations.

The Company is party to a number of licenses and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2039. In connection with most of these license agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments. See Item 8. Financial Statements and Supplementary Data – Note 11 – Commitments in our 2024 annual report on Form 10-K, which is incorporated by reference herein. Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2024, without consideration for potential renewal periods and do not reflect the fact that our distributors share our advertising obligations.

The Company hopes to continue to benefit from its strong financial position to potentially acquire one or more brands, either on a proprietary basis or as a licensee. In July 2025, our 72% owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The first launch is expected in 2027. In June 2025, our 72% owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe. Amorepacific Europe will continue to operate the Goutal brand under an existing license agreement that expires on December 31, 2025, when Interparfums SA will begin commercial use of the fragrance brand. Additionally, in June 2025, we renewed the Coach license agreement for an additional five-year term, extending the license through June 30, 2031.

In December 2024, our 72% owned French subsidiary, Interparfums SA, obtained all Off-White brand names and registered trademarks for Class 3 fragrance and cosmetics products, subject to an existing license that expires on December 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 to 59.7% at June 30, 2024. Due to past supply constraints, we had strived to carry more inventory overall, source the same components from multiple suppliers and when possible, manufacture products closer to where they are sold. These constraints have largely abated and we are gradually reversing some of these previous interventions. We are beginning to see the impacts of these recent inventory management efforts and will continue to work to optimize inventory levels.

Cash flows provided by investing activities in 2025 are comprised of the net effect of purchases and sales of short-term investments. These investments consist of certificates of deposit with maturities greater than six months, marketable equity securities and other contracts. At June 30, 2025, approximately $2.3 million of certificates of deposit contain penalties where we would forfeit a portion of the interest earned in the event of early withdrawal.

These proceeds were offset by the payment for capital expenditures during the quarter. In March 2025, the Company paid approximately $19.7 million for the purchase of the Goutal Trademark. Additionally, during the second quarter the Company purchased approximately $15.3 million of additional property in Paris attached to its French headquarters.

Our business is not capital intensive as we do not own any manufacturing facilities. On a full year basis, we typically spend approximately $5 million on tools and molds, depending on our new product development calendar. Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers.

Cash flows used in financing activities in 2025 reflect issuances and repayments of debt and payment of dividends to stockholders.

Our short-term financing requirements are expected to be met by available cash on hand at June 30, 2025, and by short-term credit lines provided by domestic and foreign banks. The principal credit facilities for 2025 consist of $70 million unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.4 million (€8 million) in credit lines provided by a consortium of international financial institutions. There was $9.4 million of short-term borrowings outstanding pursuant to these facilities as of June 30, 2025 and $18.5 million outstanding as of June 30, 2024.

In February 2024, the Board of Directors authorized an annual dividend of $3.00 per share. In February 2025, the Board of Directors further increased the annual dividend to $3.20 per share. The next quarterly cash dividend of $0.80 per share is payable on September 30, 2025, to shareholders of record on September 15, 2025.

We believe that funds provided by or used in operations can be supplemented by our present cash position and available credit facilities, so that they will provide us with sufficient resources to meet all present and reasonably foreseeable future operating needs.

Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the six months ended June 30, 2025; however, we anticipate potential inflationary impacts in the second half of 2025 due to potential increased costs from tariffs.

General

We address certain financial exposures through a controlled program of risk management that primarily consists of the use of derivative financial instruments. We primarily enter into foreign currency forward exchange contracts in order to reduce the effects of fluctuating foreign currency exchange rates. We do not engage in the trading of foreign currency forward exchange contracts or interest rate swaps.

Foreign Exchange Risk Management

We periodically enter into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and to manage risks related to future sales expected to be denominated in a currency other than our functional currency. We enter into these exchange contracts for periods consistent with our identified exposures. The purpose of the hedging activities is to minimize the effect of foreign exchange rate movements on the receivables and cash flows of Interparfums SA, whose functional currency is the euro. All foreign currency contracts are denominated in currencies of major industrial countries and are with large financial institutions, which are rated as strong investment grade.

All derivative instruments are required to be reflected as either assets or liabilities in the balance sheet measured at fair value. Generally, increases or decreases in fair value of derivative instruments will be recognized as gains or losses in earnings in the period of change. If the derivative is designated and qualifies as a cash flow hedge, then the changes in fair value of the derivative instrument will be recorded in other comprehensive income.

Before entering into a derivative transaction for hedging purposes, we determine that the change in the value of the derivative will effectively offset the change in the fair value of the hedged item from a movement in foreign currency rates. Then, we measure the effectiveness of each hedge throughout the hedged period. Any hedge ineffectiveness is recognized in the income statement.

At June 30, 2025, we had foreign currency contracts in the form of forward exchange contracts of approximately USD $111 million with maturities of less than one year. We believe that our risk of loss as the result of nonperformance by any of such financial institutions is remote.

Interest Rate Risk Management

We mitigate interest rate risk by monitoring interest rates, and then determining whether fixed interest rates should be swapped for floating rate debt, or if floating rate debt should be swapped for fixed rate debt.

Evaluation of Disclosure Controls and Procedures

Please see Item 9A. Controls and Procedures, “Evaluation of Disclosure Controls and Procedures” and “Remediation Plan,” as contained in our 2024 annual report on Form 10-K as filed with the SEC (“2024 Annual Report”), which are incorporated by reference in this quarterly report. As stated in our 2024 Annual Report, we believe that the actions set forth under “Remediation Plan,” will collectively remediate the material weaknesses identified. However, our material weaknesses will not be considered remediated until the controls operate for a sufficient period of time and management has concluded, through testing, that the related controls are operating effectively. We will continue to monitor the design and effectiveness of these and other processes, procedures, and controls and will make any further changes management deems appropriate. The above disclosure is applicable to the evaluation of our disclosure controls and procedures for this second quarter of 2025.

Changes in Internal Control Over Financial Reporting

Except as described above, there has been no significant change in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) that occurred during the quarterly period covered by this report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Information regarding our Risk Factors can be found in our 2024 Annual Report on Form 10-K filed with the SEC.

Item2. Unregistered Sales of Equity Securities and Use of Proceeds.

Item (c).

In February 2025, our Board of Directors authorized the Company to continue repurchasing up to 130,000 shares throughout 2025, which was increased to 260,000 shares in April 2025.

Interparfums, Inc. Purchase of Common Stock