Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 7, 2023

Inter Parfums, Inc.

(Exact name of Registrant as specified in its charter)

Delaware	0-16469	13-3275609
(State or other jurisdiction of incorporation or organization)	Commission File Number	(I.R.S. Employer Identification No.)

551 Fifth Avenue, New York, NY 10176
(Address of Principal Executive Offices)

212.983.2640
(Registrant’s Telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Common Stock, $.001 par value per share	IPAR	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

Certain portions of our press release dated November 7, 2023, a copy of which is annexed hereto as Exhibit no. 99.1, are incorporated by reference herein, and are filed pursuant to this Item 2.02. They are as follows:

	●	The 1^st, 2^nd (consisting of a table), 3^rd, 7^th, 8^th and 9^th paragraphs relating to results of operations for the third quarter of 2023

	●	Portions of the 4^th paragraph relating to sales by territory

	●	The 15^th – 18^th paragraphs relating to the earnings conference call scheduled for November 8, 2023

	●	The unaudited consolidated statements of income and consolidated balance sheets

Item 7.01. Regulation FD Disclosure.

	●	Portions of the 4^th paragraph relating to potential sales in China for 2024

	●	The 5^th paragraph relating to Roberto Cavalli and Lacoste licenses

	●	The 6^th paragraph relating to advertising and promotional expenses for the 2023 fourth quarter

	●	The 10^th – 12^th paragraphs relating to guidance

	●	The 21^st paragraph relating to forward looking information

●

The balance of such press release not otherwise incorporated by reference in Item 2.02 or 8.01

Item 8.01 Other Events

	●	The 13^th paragraph relating to our cash dividend

	●	The 14^th paragraph relating to our share buyback program

Item 9.01 Financial Statements and Exhibits.

99.1

Our press release dated November 7, 2023

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused and authorized this report to be signed on its behalf by the undersigned.

Dated: November 7, 2023

	Inter Parfums, Inc.

	By:	/s/ Michel Atwood
		Michel Atwood
		Chief Financial Officer

Exhibit 99.1

For Immediate Release

INTER PARFUMS, INC. REPORTS RECORD 2023 THIRD QUARTER RESULTS

Affirms FY2023 Net Sales Guidance; Increases FY2023 Net Earnings Guidance

NEW YORK – November 7, 2023: Inter Parfums, Inc. (NASDAQ GS: IPAR) (“Inter Parfums” or the “Company”) today reported its financial results for the three months and nine months ended September 30, 2023.

Third Quarter Financial Highlights
($ in millions, except per share data)	2023	2022	% Change
Net Sales	$368	$280	31%
Gross Profit	$235	$182	29%
Gross Margin (as a percentage of net sales)	63.9%	64.9%	(100 bps)
Operating Income	$87	$64	35%
Operating Margin	23.7%	23.0%	70 bps
Net Income (attributable to Inter Parfums, Inc.)	$53	$41	28%
Earnings Per Diluted Share	$1.66	$1.30	28%
At comparable foreign currency exchange rates, consolidated net sales for the three months and nine months ended September 30, 2023, increased 27% and 26%, respectively, compared to the same periods last year. Of note, the average dollar/euro exchange rate for the current third quarter was 1.09 compared to 1.01 in the third quarter of 2022, while for the first nine months of 2023, the average dollar/euro exchange rate was 1.08 compared to 1.06 in the same period in 2022, leading to a positive 4% and 1% foreign exchange impact for the quarter and first nine months, respectively.

Operational Commentary

“We continued to see favorable trends across the robust fragrance industry, high demand for our brands, and success in our launches, extensions, and distribution, all of which combined to produce record quarterly net sales and very strong earnings,” said Jean Madar, Chairman & Chief Executive Officer of Inter Parfums.

“North America continued to be our largest market, with sales increasing 29% in the third quarter compared to the prior year period, and Western Europe followed at 24% sales growth. Asia, our third largest market, performed well with net sales increasing 20% over that same period. We have been able to increase our sell-out in China, namely on Coach, Montblanc and Ferragamo, enabling us to manage down our stock-in-trade levels, which should provide a favorable tailwind in 2024.

“With regard to Roberto Cavalli and Lacoste, we expect to benefit from these recent license acquisitions beginning in 2024. Roberto Cavalli fragrance products are scheduled to start shipping in January 2024, with extensions planned for mid-summer next year. The Lacoste license will take effect in January 2024, and we are well prepared to launch our corresponding strategy and product innovation.”

Mr. Madar concluded, “As in prior years, we are making a major investment in advertising and promotion during the fourth quarter to ensure sell-out at the retail level, build brand awareness and drive continued growth. Once again, we target 21% of our annual net sales for advertising and promotion as we invest aggressively in the fourth quarter to drive sell-through. The first three quarters of 2023 have been incredibly successful, and we look forward to executing on our plans for the remainder of the year.”

Inter Parfums, Inc.

Page 2

November 7, 2023

Financial Commentary

Michel Atwood, Chief Financial Officer of Inter Parfums, noted, “Net income attributable to Inter Parfums, Inc. increased 28% to $53 million, or $1.66 per diluted share, in the third quarter of 2023, compared to $41 million, or $1.30 per diluted share, in the prior year period.

“Overall, in the third quarter we were able to maintain our operating margins as our pricing actions have broadly compensated for inflationary impacts.

“SG&A as a percentage of sales was down 170 basis points to 40.2% as the significant increase in third quarter sales allowed us to better absorb fixed expenses as compared to the prior year period despite increased investments in Advertising and Promotion, and the structural investments we made to support our new licenses.”

2023 Guidance

With an update on 2023 guidance, Mr. Atwood continued, “The ongoing strength in the market, coupled with our year-to-date performance, gives us confidence in the balance of the year. We are affirming our FY2023 net sales guidance of $1.3 billion, or growth of 20% from FY2022, despite geopolitical tensions and the very high fourth quarter 2022 base.

“We are now increasing our earnings per diluted share guidance to $4.75 (previously guided to $4.55), or growth of 26% from $3.78 for FY 2022.”

Guidance for 2023 assumes that the dollar/euro average exchange rate remains at current levels; only modest sales from China are included, and newly acquired fragrance licenses, Roberto Cavalli and Lacoste, are not included.

Dividend

The Company’s regular quarterly cash dividend of $0.625 per share will be paid on December 31, 2023, to shareholders of record on December 15, 2023.

Share Buyback Program

In December 2022, our Board of Directors authorized a share repurchase program of up to 166,060 shares. Over the course of the first nine months of 2023, the Company repurchased 85,060 shares at a cost of $11.3 million. The Company plans to continue repurchasing shares during the balance of 2023.

Third Quarter 2023 Conference Call

Management will host a conference call to discuss financial results and business developments beginning at 11:00 am ET on Wednesday, November 8, 2023.

Interested parties may participate in the live call by dialing (877) 423-9820 (toll-free) or (201) 493-6749 (international).

Participants are asked to dial-in 10 minutes before the conference call is scheduled to begin.

A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.

Inter Parfums, Inc.

Page 3

November 7, 2023

About Inter Parfums, Inc.

Operating in the global fragrance business since 1982, Inter Parfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance-related products under license agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations.

The portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan, DKNY, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, Ungaro, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Inter Parfums, Inc. is also the registered owner of several trademarks including Lanvin and Rochas.

Forward-Looking Statements

Statements in this release 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 Inter Parfums’ annual report on Form 10-K for the fiscal year ended December 31, 2022 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact Information

Inter Parfums, Inc.

The Equity Group Inc.

Michel Atwood

Investor Relations Counsel

Chief Financial Officer

Karin Daly (212) 836-9623 / kdaly@equityny.com

(212) 983-2640

Linda Latman (212) 836-9609 / llatman@equityny.com

www.interparfumsinc.com

www.theequitygroup.com

See Accompanying Tables

Inter Parfums, Inc.

Page 4

November 7, 2023

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

(Unaudited)

ASSETS
	September 30, 2023			December 31, 2022
Current assets:
Cash and cash equivalents	$	79,764		$	104,713
Short-term investments		103,745			150,833
Accounts receivable, net		288,085			197,584
Inventories		364,270			289,984
Receivables, other		13,645			28,803
Other current assets		26,847			15,650
Income taxes receivable		498			157
Total current assets		876,854			787,724

Property, equipment and leasehold improvements, net		163,002			166,722
Right-of-use assets, net		29,359			27,964
Trademarks, licenses and other intangible assets, net		286,697			290,853
Deferred tax assets		16,063			11,159
Other assets		22,422			24,120
Total assets	$	1,394,397		$	1,308,542

LIABILITIES AND EQUITY
Current liabilities:
Loans payable - banks	$	4,501		$	—
Current portion of long-term debt		41,768			28,547
Current portion of lease liabilities		5,687			5,296
Accounts payable – trade		87,161			88,388
Accrued expenses		200,065			213,621
Income taxes payable		23,913			8,715
Total current liabilities		363,095			344,567

Long–term debt, less current portion		128,983			151,494

Lease liabilities, less current portion		25,452			24,335

Equity:
Inter Parfums, Inc. shareholders’ equity:
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued		—			—
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,980,805 and 31,967,300 shares at September 30, 2023 and December 31, 2022, respectively		32			32
Additional paid-in capital		95,752			90,186
Retained earnings		703,091			620,095
Accumulated other comprehensive loss		(59,802	)		(56,056	)
Treasury stock, at cost, 9,949,865 and 9,864,805 shares at September 30, 2023 and December 31, 2022, respectively		(48,764	)		(37,475	)
Total Inter Parfums, Inc. shareholders’ equity		690,309			616,782
Noncontrolling interest		186,558			171,364
Total equity		876,867			788,146
Total liabilities and equity	$	1,394,397		$	1,308,542

Inter Parfums, Inc.

Page 5

November 7, 2023

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022

Net sales	$	367,969		$	280,462		$	988,936		$	775,865

Cost of sales		132,962			98,562			362,568			281,525

Gross margin		235,007			181,900			626,368			494,340

Selling, general and administrative expenses		147,805			117,424			393,866			323,249

Income from operations		87,202			64,476			232,502			171,091

Other expenses (income):
Interest expense		2,397			682			7,030			2,589
(Gain) loss on foreign currency		(669	)		273			(656	)		(2,245	)
Interest and investment income		(1,062	)		(3,343	)		(8,421	)		(2,341	)
Other (income) expense		(77	)		346			(125	)		(98	)

		589			(2,042	)		(2,172	)		(2,095	)

Income before income taxes		86,613			66,518			234,674			173,186

Income taxes		20,493			13,221			55,128			39,078

Net income		66,120			53,297			179,546			134,108

Less: Net income attributable to the noncontrolling interest		12,906			11,874			37,312			29,769

Net income attributable to Inter Parfums, Inc.	$	53,214		$	41,423		$	142,234		$	104,339

Earnings per share:

Net income attributable to Inter Parfums, Inc. common shareholders:
Basic	$	1.66		$	1.30		$	4.44		$	3.28
Diluted	$	1.66		$	1.30		$	4.42		$	3.26

Weighted average number of shares outstanding:
Basic		31,976			31,860			32,000			31,848
Diluted		32,124			31,968			32,149			31,977

Dividends declared per share	$	0.625		$	0.50		$	1.875		$	1.50

Cover	Nov. 07, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 07, 2023
Entity File Number	0-16469
Entity Registrant Name	Inter Parfums, Inc.
Entity Central Index Key	0000822663
Entity Tax Identification Number	13-3275609
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	551 Fifth Avenue,
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10176
City Area Code	212
Local Phone Number	983.2640
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $.001 par value per share
Trading Symbol	IPAR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false