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what it is
Interparfums makes and sells licensed perfumes, cosmetics, and beauty aids in more than 100 countries.
how it gets paid
Last year Interparfums made $1.5B in revenue. Licensed fragrances was the main engine at $1.32B, or 88% of sales.
why it's growing
Revenue grew 2.5% last year. Holiday demand and favorable currency lifted sales. The bottom line was weaker after the one-time debt gain faded.
what just happened
$386.2M in sales beat the $367.7M estimate, but EPS still slipped.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
20.3x trailing p/e — priced about right
3.3% dividend yield — cash in your pocket every quarter
15.0% return on capital — nothing to write home about
xvary composite: 61/100 — average
What they do
Interparfums makes and sells licensed perfumes, cosmetics, and beauty aids in more than 100 countries.
Licensing agreements (brand-rental deals) mean it pays to use famous names instead of building them. You are buying a business that sells in 100+ countries, and the seven biggest brands made 77% of 2025 sales. Your customer already knows the label before the first spray.
How they make money
$1.5B
annual revenue · their business grew +2.5% last year
Licensed fragrances
$1.32B
+3.0%
Cosmetics
$0.09B
+1.0%
Health and beauty aids
$0.05B
0.0%
Licensing and other
$0.04B
+2.0%
The products that matter
licensed fragrance manufacturing and distribution
Prestige Fragrances
$1.3B revenue · 100% of business
it's the entire company. all $1.3B of revenue comes from exclusive fragrance licenses, which means your upside comes from execution and renewals, not diversification. that concentration keeps the story easy to follow. it also leaves you nowhere to hide.
100% of revenue
Key numbers
$1.5B
annual revenue
Revenue tells you the scale. Interparfums is a $1.5B seller with $121M of long-term debt, so the balance sheet is carrying a small load.
21.5%
operating margin
Operating margin means profit after running the business. At 21.5%, Interparfums keeps $21.50 from every $100 of sales.
3.3%
dividend yield
Dividend yield means cash return for waiting. You get 3.3% just to own the shares.
15.0%
return on capital
Return on capital means profit on the money used. Interparfums earns $15 for every $100 it puts to work.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $121M (4% of capital)
- net profit margin 11.8% — keeps 12 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IPAR 3 years ago → it's now worth $9,080.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
$386.2M in sales beat the $367.7M estimate, but EPS still slipped.
Holiday demand and favorable currency lifted sales. The bottom line was weaker after the one-time debt gain faded.
$386.2M
revenue
$0.64
eps
64.4%
gross margin
sales beat
The key number was $386.2M, because it beat $367.7M and showed demand held up.
-
interparfums had mixed results in the 2025 fourth quarter.
-
sales improved about 7% vs. prior year, to $386.2 million, driven by resilient holiday spending and favorable currency exchange rates.
-
this easily surpassed our $367.7 million estimate, but the bottom line was well under expectations.
-
excluding the one-time gain from debt extinguishment, adjusted shareearnings plunged 22% from the year-ago period, at $0.64.
-
tariffs, promotional activity, and payroll expenses eroded the operating margin by 400 basis points, at 7.1%.
source: company earnings report, 2026
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What could go wrong
this is not a generic consumer-stock risk list. interparfums just showed you the two pressure points that matter: all $1.3B of revenue depends on licensed brands, and q4 operating margin fell to 7.1%.
med
license dependency
interparfums generated all $1.3B of revenue from licensed prestige fragrance brands. that is the business model and the core dependency in the same breath.
if a meaningful brand walks or renews on worse terms, there is no second segment to hide the damage. you would feel it in revenue and in how much investors trust the story.
med
margin staying lower for longer
the latest quarter showed how fast the income statement can bend. operating margin fell 400 basis points to 7.1% because of tariffs, promotions, and payroll costs.
if sales keep rising but margin stays near 7.1%, the 20.3x earnings multiple stops looking reasonable. the stock would be priced for a business that no longer exists.
med
currency help reversing
favorable foreign exchange helped recent sales. that tailwind can disappear just as quickly for a global fragrance business.
you could get a quarter where reported revenue looks softer even if underlying demand did not change much. for a stock with already weak chart momentum, that can hit sentiment fast.
the core risk is simple: this is a one-engine business, and the latest quarter already showed how quickly profit can get squeezed even when revenue beats.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
operating margin recovery
q4 operating margin fell to 7.1%. if that number does not bounce, the earnings story gets worse than the revenue story.
risk
license renewals
the business runs on exclusive fragrance rights. any loss, delay, or worse renewal terms would hit the core model directly.
calendar
next earnings report
you want two answers next quarter: did margin recover from 7.1%, and did management frame tariffs and promotions as temporary or persistent.
trend
estimate direction
fy2026 EPS sits at $4.85. if that moves down while the stock stays near $101.70, valuation support gets thinner.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts do not see a strong short-term edge either way.
risk profile
average
stability score 3. this is a normal-risk stock, not a bunker and not a disaster waiting to happen.
chart momentum
bottom 5%
technical score 5. translation: the chart has been weak enough that the market is treating this as a laggard for now.
earnings predictability
60 / 100
earnings are reasonably trackable, but not clean. the q4 revenue beat and profit miss is exactly what a middling predictability score looks like.
source: institutional data
Institutional activity
99 buyers vs. 119 sellers in 4q2025. total institutional holdings: 20.4M shares.
source: institutional data
Price targets
3-5 year target range
$85
$179
$102
current price
$132
target midpoint · +30% from current · 3-5yr high: $180 (+75% · 16% ann'l return)
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