Announcement

Interparfums (EPA:IPAR) announced that its first‑half (H1) organic sales declined 3.7% year‑on‑year, delivering €414.3 million, which represents a 7.3% drop from the same period last year. The company also cut its full‑year organic sales guidance to an expected decline of around 3%, compared with the market consensus of a 0.1% decline, citing ongoing conflicts in the Middle East and Eastern Europe.

Share Reaction

Following the release, Interparfums shares fell nearly 9% on Thursday, 23 July 2026, reflecting investor disappointment with the weaker sales and the lowered outlook.

Quarterly Results

Second‑quarter reported sales amounted to €199 million, missing analyst expectations by roughly 3%. Goldman Sachs estimated that the Middle‑East region reduced group sales by almost 200 basis points.

Guidance and Outlook

Management projects full‑year 2026 revenue of €850‑€870 million, implying a 3% decline at constant exchange rates. The company expects a first‑half EBIT margin of 19‑20%, below the consensus forecast of 20.2%. Goldman Sachs interpreted the guidance as indicating a low‑single‑digit cut to full‑year earnings, and suggested the profit miss may be limited to low single digits if the company maintains strong quarterly visibility.

Brand Performance

By brand, Coach grew 3% on a reported basis, driven by a 10% increase in the United States. Jimmy Choo rose 1%, supported by a 9% U.S. gain. Montblanc showed a modest decline of 1%. Lacoste fell sharply by 21%, while Rochas and Lanvin declined 12% and 26% respectively.

Regional Breakdown

Regionally, the United States posted an 8% organic growth in H1. South America increased 3% on a reported basis, largely due to Jimmy Choo. Asia improved in the second quarter, helped by China and Australia. Western Europe declined 17%, weighed down by Germany and the Netherlands, although France remained broadly stable thanks to Lacoste and Rochas. Eastern Europe fell 20% because of operational difficulties in Russia, and the Middle East experienced a 32% decline.

Analyst Commentary

Goldman Sachs analysts noted that while the midpoint of the revenue guidance suggests a mid‑single‑digit profit shortfall, the company’s strong quarterly visibility could limit the miss to low single digits.