INTERPARFUMS INC (IPAR)

Inter Parfums, Inc., founded in 1982, operates in the fragrance business, manufacturing, marketing and distributing a wide array of prestige fragrances and fragrance related products. Its common stock trades on the Nasdaq Global Select Market under the symbol "IPAR," and its 72%-owned Paris-based subsidiary, Interparfums SA, is also publicly traded on Euronext.

The business is managed in two segments. European based operations, run largely through Interparfums SA, accounted for about 65% of 2023 net sales. Their portfolio includes Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas and Van Cleef & Arpels, distributed in over 120 countries. United States based operations accounted for about 35% of net sales and cover brands such as Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Roberto Cavalli and Ungaro. The company owns the Rochas brand and the Lanvin name and trademarks for its class of trade, and the seller of Lanvin holds a right to repurchase them on July 1, 2027 for €70 million. Most other brands are produced and distributed under license agreements. Under these, the company gets the right to create fragrances and packaging, set positioning and distribution, and sell the products in exchange for royalties, subject to minimum sales and advertising commitments. Recent license developments include Roberto Cavalli (effective July 2023), Lacoste (effective January 2024, 15 years), Donna Karan and DKNY (effective July 2022), Ferragamo and Ungaro (both 2021). The Dunhill license expired on September 30, 2023, and a sell-off period runs through September 30, 2024. The company's largest brands represented 73% of 2023 sales.

Products are sold through department stores, specialty stores, duty free shops and, for some brands, the licensors' own retail stores and boutiques. Macy's, the top retail customer, accounted for about 12% of 2023 net sales, and no customer reached 10% in 2022 or 2021. The company concentrates on markets where each brand is best known and typically studies a market for almost a year before launching a new fragrance family, with seasonal and limited edition launches in between.

The company says its business is not capital intensive and it owns no manufacturing facilities. It acts as a general contractor, sourcing components from suppliers. These go to third-party fillers that make the finished products and deliver them to company distribution centers. Its worldwide headquarters and the office of its subsidiary Interparfums USA LLC are at 551 Fifth Avenue, New York, and Interparfums SA has executive offices at 10 rue de Solférino, Paris. Other subsidiaries include Interparfums Italia Srl, Interparfums Luxury Brands, Interparfums (Suisse) Sarl, Interparfums Singapore, Interparfums Middle East DMCC, Inter Parfums USA Hong Kong Limited, and Parfums Rochas Spain, SL, which distributes Rochas fragrances.