Inter Parfums (IPAR) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 08, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
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
Title of 12(b) Security	Common Stock, $.001 par value per share
Trading Symbol	IPAR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,975,670

CONSOLIDATED BALANCE SHEETS(Una

CONSOLIDATED BALANCE SHEETS(Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 74,311	$ 104,713
Short-term investments	112,449	150,833
Accounts receivable, net	236,554	197,584
Inventories	360,018	289,984
Receivables, other	14,730	28,803
Other current assets	24,993	15,650
Income taxes receivable	386	157
Total current assets	823,441	787,724
Property, equipment and leasehold improvements, net	168,264	166,722
Right-of-use assets, net	28,005	27,964
Trademarks, licenses and other intangible assets, net	292,319	290,853
Deferred tax assets	14,333	11,159
Other assets	25,302	24,120
Total assets	1,351,664	1,308,542
Current liabilities:
Loans payable - banks	4,958
Current portion of long-term debt	29,080	28,547
Current portion of lease liabilities	5,236	5,296
Accounts payable – trade	91,040	88,388
Accrued expenses	194,036	213,621
Income taxes payable	17,324	8,715
Total current liabilities	341,674	344,567
Long–term debt, less current portion	138,565	151,494
Lease liabilities, less current portion	24,491	24,335
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 31,975,670 and 31,967,300 shares at June 30, 2023 and December 31, 2022, respectively	32	32
Additional paid-in capital	95,984	90,186
Retained earnings	669,688	620,095
Accumulated other comprehensive loss	(48,739)	(56,056)
Treasury stock, at cost, 9,949,865 and 9,864,805 shares at June 30, 2023 and December 31, 2022, respectively	(48,764)	(37,475)
Total Inter Parfums, Inc. shareholders’ equity	668,201	616,782
Noncontrolling interest	178,733	171,364
Total equity	846,934	788,146
Total liabilities and equity	$ 1,351,664	$ 1,308,542

CONSOLIDATED BALANCE SHEETS(U_2

CONSOLIDATED BALANCE SHEETS(Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par or stated value per share	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares, outstanding	31,975,670	31,967,300
Treasury stock, shares	9,949,865	9,864,805

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 309,244	$ 244,725	$ 620,967	$ 495,403
Cost of sales	120,840	90,943	229,606	182,963
Gross margin	188,404	153,782	391,361	312,440
Selling, general and administrative expenses	133,383	108,385	246,061	205,825
Income from operations	55,021	45,397	145,300	106,615
Other expenses (income):
Interest expense	2,276	1,023	4,633	1,907
(Gain) loss on foreign currency	(746)	(279)	13	(2,518)
Interest and investment (income) loss	(1,977)	(464)	(7,359)	1,002
Other income	(7)	(328)	(48)	(444)
Nonoperating Income (Expense)	(454)	(48)	(2,761)	(53)
Income before income taxes	55,475	45,445	148,061	106,668
Income taxes	12,957	10,925	34,635	25,857
Net income	42,518	34,520	113,426	80,811
Less:  Net income attributable to the noncontrolling interest	7,566	6,903	24,406	17,895
Net income attributable to Inter Parfums, Inc.	$ 34,952	$ 27,617	$ 89,020	$ 62,916
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic	$ 1.09	$ 0.87	$ 2.78	$ 1.98
Diluted	$ 1.09	$ 0.86	$ 2.77	$ 1.97
Weighted average number of shares outstanding:
Basic	32,006	31,845	32,012	31,843
Diluted	32,162	31,952	32,161	31,981
Dividends declared per share	$ 0.625	$ 0.50	$ 1.30	$ 1

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Comprehensive income:
Net income	$ 42,518	$ 34,520	$ 113,426	$ 80,811
Other comprehensive income (loss):
Net derivative instrument loss, net of tax	(77)	(1,749)	(4,243)	(1,488)
Transfer from OCI into earnings			1,709	992
Translation adjustments, net of tax	(454)	(33,630)	13,035	(46,071)
Comprehensive income (loss)	41,987	(859)	123,927	34,244
Comprehensive income attributable to the noncontrolling interests:
Net income	7,566	6,903	24,406	17,895
Net derivative instrument loss, net of tax	(21)	(483)	(227)	(411)
Translation adjustments, net of tax	(211)	(10,743)	3,411	(14,162)
Comprehensive income (loss) attributable to the noncontrolling interests	7,334	(4,323)	27,590	3,322
Comprehensive income attributable to Inter Parfums, Inc.	$ 34,653	$ 3,464	$ 96,337	$ 30,922

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Common [Member]	Noncontrolling Interest [Member]	Total
Beginning Balance at Dec. 31, 2021	$ 32	$ 87,132	$ 560,663	$ (38,432)	$ (37,475)	$ 166,412	$ 852,671
Net income			62,916			17,895	80,811
Shares issued upon exercise of stock options		810
Dividends			(31,844)			(16,056)
Foreign currency translation adjustment, net of tax				(31,909)		(14,162)
Share-based compensation		679	1,632			(389)
Purchase of subsidiary shares		(4,305)				(152)
Transfer from other comprehensive income into earnings				992
Net derivative instrument gain (loss), net of tax				(1,077)		(411)	1,488
Shares repurchased
Transfer of subsidiary shares purchased						54
Ending Balance at Jun. 30, 2022	32	84,316	593,367	(70,426)	(37,475)	153,191	723,005
Beginning Balance at Dec. 31, 2022	32	90,186	620,095	(56,056)	(37,475)	171,364	788,146
Net income			89,020			24,406	113,426
Shares issued upon exercise of stock options		5,191
Dividends			(40,020)			(20,301)
Foreign currency translation adjustment, net of tax				9,624		3,411
Share-based compensation		624	593			97
Purchase of subsidiary shares		(17)				(17)
Transfer from other comprehensive income into earnings				1,709
Net derivative instrument gain (loss), net of tax				(4,016)		(227)	4,243
Shares repurchased					(11,289)
Transfer of subsidiary shares purchased
Ending Balance at Jun. 30, 2023	$ 32	$ 95,984	$ 669,688	$ (48,739)	$ (48,764)	$ 178,733	$ 846,934

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 113,426	$ 80,811
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	8,367	6,803
Provision for doubtful accounts	(650)	1,241
Noncash stock compensation	1,265	1,877
Share of income of equity investment	(48)	(444)
Noncash lease expense	2,620	3,017
Deferred tax provision (benefit)	(2,987)	(2,595)
Change in fair value of derivatives	164	(2,036)
Changes in:
Accounts receivable	(35,181)	(48,085)
Inventories	(66,144)	(81,188)
Other assets	3,406	(1,872)
Operating lease liabilities	(2,579)	(2,822)
Accounts payable and accrued expenses	(23,425)	7,916
Income taxes, net	8,531	8,869
Net cash provided by (used in) operating activities	6,765	(28,508)
Cash flows from investing activities:
Purchases of short-term investments	(97,079)	(2,941)
Proceeds from sale of short-term investments	138,061	6,211
Purchases of property, equipment and leasehold improvements	(3,202)	(30,305)
Payment for intangible assets acquired	(228)	(1,016)
Net cash provided by (used in) investing activities	37,552	(28,051)
Cash flows from financing activities:
Proceeds from loans payable, bank	4,947
Repayment of long-term debt	(15,958)	(7,522)
Proceeds from exercise of options	5,191	810
Purchase of subsidiary shares from noncontrolling interest		(4,403)
Dividends paid	(40,020)	(31,844)
Dividends paid to noncontrolling interest	(20,301)	(16,056)
Purchase of treasury stock	(11,289)
Net cash used in financing activities	(77,430)	(59,015)
Effect of exchange rate changes on cash	2,711	(578)
Net decrease in cash and cash equivalents	(30,402)	(116,152)
Cash and cash equivalents - beginning of period	104,713	168,387
Cash and cash equivalents - end of period	74,311	52,235
Cash paid for:
Interest	3,189	1,581
Income taxes	$ 30,096	$ 16,369

Significant Accounting Policies

Significant Accounting Policies:	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Significant Accounting Policies:	1. Significant Accounting Policies: The accounting policies we follow are set forth in the notes to our consolidated financial statements included in our Form 10-K, which was filed with the Securities and Exchange Commission for the year ended December 31, 2022.

Impact of COVID-19 Pandemic_

Impact of COVID-19 Pandemic:	6 Months Ended
	Jun. 30, 2023
Unusual or Infrequent Items, or Both [Abstract]
Impact of COVID-19 Pandemic:	2. Impact of COVID-19 Pandemic: Our business has continued to significantly improve throughout 2022 and the first half of 2023 after the disastrous effects of the COVID-19 Pandemic starting in early 2020, as retail stores reopened, and consumers increased online purchasing. While COVID-19 had significantly restricted international travel, the travel retail business has picked up. Lastly, we experienced significant strains on our supply chain causing disruptions affecting the procurement of components, the ability to transport goods, and related cost increases. These disruptions came at a time when demand for our product lines has never been stronger or more sustained. We have addressed this issue since the beginning of 2021, by ordering well in advance of need and in larger quantities. Since 2021, we have strived to carry more inventory overall, source the same components from multiple suppliers and when possible, manufacture products closer to where they are sold. The supply chain bottlenecks have been improving and while lead times remain longer than pre-COVID, we do not expect significant disruptions going forward.

Recent Agreements_

Recent Agreements:	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Recent Agreements:	3. Recent Agreements: Roberto Cavalli In July 2023, we closed a transaction agreement with Roberto Cavalli, whereby an exclusive and worldwide license was granted for the production and distribution of Roberto Cavalli brand perfumes and fragrance related products. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The license became effective in July 2023 and will last for 6.5 years. Lacoste In December 2022, we closed a transaction agreement with Lacoste, whereby an exclusive and worldwide license was granted for the production and distribution of Lacoste brand perfumes and cosmetics. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The license becomes effective in January 2024 and will last for 15 years. Dunhill In April 2022, we announced that the Dunhill fragrance license will expire on September 30, 2023 and will not be renewed. The Company will continue to produce and sell Dunhill fragrances until the license expires and will maintain the right to sell-off remaining Dunhill fragrance inventory for a limited time as is customary in the fragrance industry. Donna Karan and DKNY In September 2021, we entered into a long-term global licensing agreement for the creation, development and distribution of fragrances and fragrance related products under the Donna Karan and DKNY brands. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. With this agreement, we are gaining several well-established and valuable fragrance franchises, most notably Donna Karan Cashmere Mist Be Delicious Rochas Fashion Effective January 1, 2021, we entered into a new license agreement modifying our Rochas fashion business model. The new agreement calls for a reduction in royalties to be received. As a result, in the first quarter of 2021, we took a $2.4 million impairment charge on our Rochas fashion trademark. In the fourth quarter of 2022, we again took a $6.8 million impairment charge on the Rochas fashion trademark after an independent expert concluded that the valuation of the trademark was $11.3 million. The new license also contains an option for the licensee to buy-out the Rochas fashion trademarks in June 2025 at its then fair market value. Land and Building Acquisition - Headquarters in Paris In April 2021, Interparfums SA, our 72 The purchase price included the complete renovation of the site. As of June 30, 2023, $ 152 3.1 62.2 89.6 7 50 1.2 The acquisition was financed by a 10 120 million 130.4 one-month Euribor plus 0.75% 80 million 2 1.1

Recent Accounting Pronouncement

Recent Accounting Pronouncements:	6 Months Ended
	Jun. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements:	4. Recent Accounting Pronouncements: There are no recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements.

Inventories_

Inventories:	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories:	5. Inventories: Inventories consist of the following: (In thousands) June 30, 2023 December 31, 2022 Raw materials and component parts $ 173,660 $ 146,772 Finished goods 186,358 143,212 Inventories $ 360,018 $ 289,984

Fair Value Measurement_

Fair Value Measurement:	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement:	6. Fair Value Measurement: The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at June 30, 2023 Total Quoted Prices in Significant Other Significant Assets: Short-term investments $ 112,449 $ 2,150 $ 109,489 $ 811 Interest rate swaps 6,780 — 6,780 — Foreign currency forward exchange contracts not accounted for using hedge accounting 165 — 165 — Total asset $ 119,394 $ 2,150 $ 116,434 $ 811 Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting $ 9 $ — $ 9 $ — Fair Value Measurements at December 31, 2022 Total Quoted Prices in Significant Other Significant Assets: Short-term investments $ 150,833 $ 19,861 $ 130,174 $ 798 Interest rate swaps 6,758 — 6,758 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,189 — 1,189 — Total asset $ 158,780 $ 19,861 $ 138,121 $ 798 Liabilities: Foreign currency forward exchange contracts not accounted for using hedge accounting 68 — 68 — Total Liabilities $ 68 $ — $ 68 $ — The carrying amount of cash and cash equivalents including money market funds, short-term investments, accounts receivable, other receivables, cash held in escrow, accounts payable and accrued expenses approximate fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. The fair value of the Company’s long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value. Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps is the discounted net present value of the swaps using third party quotes from financial institutions.

Derivative Financial Instrument

Derivative Financial Instruments:	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments:	7. Derivative Financial Instruments: The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Before entering into a derivative transaction for hedging purposes, it is determined that a high degree of initial effectiveness exists between the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates. High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item. The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference which is reported in current period earnings. Any hedge ineffectiveness is also recognized as a gain or loss on foreign currency in the income statement. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued, and gains and losses accumulated in other comprehensive income are reclassified to earnings. If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated in other comprehensive income are reclassified to current-period earnings. In December 2022, to finance the acquisition of the Lacoste trademark, the Company entered into a € 50 54.3 million 4 2 In connection with the April 2021 acquisition of the office building complex in Paris, € 120 130.4 10 80 1.1 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 income statements. Such gains and losses were immaterial for the three and six months ended June 30, 2023 and 2022. All derivative instruments are reported as either assets or liabilities on the balance sheet measured at fair value. The valuation of interest rate swaps is included in other assets on the accompanying balance sheets. The valuation of foreign currency forward exchange contracts at June 30, 2023 resulted in a net asset and is included in other current assets on the accompanying balance sheet. At June 30, 2023, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $ 38.0 2 one

Leases_

Leases:	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases:	8. Leases: The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease. Renewal, termination, or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments. As of June 30, 2023, the weighted average remaining lease term was 5.6 2.8 1.5 million 2.9 million 1.3 3.1 2.6 million 2.8 million 2.4 0.5

Share-Based Payments_

Share-Based Payments:	6 Months Ended
	Jun. 30, 2023
Equity:
Share-Based Payments:	9. Share-Based Payments: The Company maintains a stock option program for key employees, executives and directors. The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options. Options granted under the plans typically have a six-year term and vest over a four five 0.10 0.10 The following table sets forth information with respect to nonvested options for the six months ended June 30, 2023: Number of Shares Weighted Average Grant-Date Fair Value Nonvested options – beginning of period 168,730 $ 16.31 Nonvested options granted — — Nonvested options vested or forfeited (23,560 ) $ 13.59 Nonvested options – end of period 145,170 $ 16.75 Share-based payment expense decreased income before income taxes by $ 0.63 1.27 1.22 1.88 0.43 million 0.86 million 0.74 million 1.18 million The following table summarizes stock option information as of June 30, 2023: Shares Weighted Average Exercise Price Outstanding at January 1, 2023 441,580 $ 67.30 Options forfeited (15,960 ) 70.48 Options exercised (93,430 ) 55.57 Outstanding at June 30, 2023 332,190 $ 70.44 Options exercisable 187,020 $ 61.53 Options available for future grants 574,935 As of June 30, 2023, the weighted average remaining contractual life of options outstanding is 2.40 0.6 21.5 13.8 2.0 Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2023 and 2022 were as follows: (In thousands) June 30, June 30, Cash proceeds from stock options exercised $ 5,192 $ 810 Tax benefits 840 75 Intrinsic value of stock options exercised 5,773 698 There were no Expected volatility is estimated based on historic volatility of the Company’s common stock. The expected term of the option is estimated based on historic data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors would increase as the earnings of the Company and its stock price continues to increase. In December 2018, Interparfums SA approved a plan to grant an aggregate of 26,600 133,000 211,955 4.8 In March 2022, Interparfums SA approved an additional plan to grant an aggregate of 88,400 The fair value of the grant had been determined based on the quoted stock price of Interparfums SA shares as reported by the NYSE Euronext on the date of grant. The estimated number of shares to be distributed of 93,489 4.2 million Similar to the December 2018 plan, in order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed or to be distributed pursuant to these plans will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA. As of June 30, 2023 the Company acquired 69,609 3.0 In the first half of 2023, the Company initiated a share repurchase program with the primary intent of neutralizing the dilution impact of the stock option programs previously discussed. Over the course of the first half of 2023, the Company repurchased 85,060 11.3 All share purchases and issuances have been classified as equity transactions on the accompanying balance sheet.

Net Income Attributable to Inte

Net Income Attributable to Inter Parfums, Inc. Common Shareholders:	6 Months Ended
	Jun. 30, 2023
Earnings per share:
Net Income Attributable to Inter Parfums, Inc. Common Shareholders:	10. Net Income Attributable to Inter Parfums, Inc. Common Shareholders: Net income attributable to Inter Parfums, Inc. per common share (“basic EPS”) is computed by dividing net income attributable to Inter Parfums, Inc. by the weighted average number of shares outstanding. Net income attributable to Inter Parfums, Inc. per share assuming dilution (“diluted EPS”), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options using the treasury stock method. The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Three months ended Six months ended (In thousands) 2023 2022 2023 2022 Numerator: Net income attributable to Inter Parfums, Inc. $ 34,952 $ 27,617 $ 89,020 $ 62,916 Denominator: Weighted average shares 32,006 31,845 32,012 31,843 Effect of dilutive securities: Stock options 156 107 149 138 Denominator for diluted earnings per share 32,162 31,952 32,161 31,981 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 1.09 $ 0.87 $ 2.78 $ 1.98 Diluted 1.09 0.86 2.77 1.97 There were no

Segment and Geographic Areas_

Segment and Geographic Areas:	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment and Geographic Areas:	11. Segment and Geographic Areas: The Company manufactures and distributes one product line, fragrances and fragrance related products. The Company manages its business in two segments, European based operations and United States based operations. The European assets are located, and operations are primarily conducted, in France. Both European based operations and United States based operations primarily represent the sale of prestige brand name fragrances. Information on our operations by geographical areas is as follows: Three months ended Six months ended (In thousands) 2023 2022 2023 2022 Net sales: United States $ 111,436 $ 78,444 $ 192,890 $ 146,946 Europe 197,808 166,287 428,077 348,469 Eliminations — (6 ) — (12 ) $ 309,244 $ 244,725 $ 620,967 $ 495,403 Net income attributable to Inter Parfums, Inc.: United States $ 15,567 $ 9,991 $ 25,910 $ 16,505 Europe 19,385 17,626 63,110 46,411 $ 34,952 $ 27,617 $ 89,020 $ 62,916 June 30, December 31, 2023 2022 Total Assets: United States $ 313,261 $ 278,090 Europe 1,048,040 1,052,004 Eliminations (9,637 ) (21,552 ) $ 1,351,664 $ 1,308,542

Inventories_ (Tables)

Inventories: (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventories consist of the following:	Inventories consist of the following: (In thousands) June 30, 2023 December 31, 2022 Raw materials and component parts $ 173,660 $ 146,772 Finished goods 186,358 143,212 Inventories $ 360,018 $ 289,984

Fair Value Measurement_ (Tables

Fair Value Measurement: (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.	The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at June 30, 2023 Total Quoted Prices in Significant Other Significant Assets: Short-term investments $ 112,449 $ 2,150 $ 109,489 $ 811 Interest rate swaps 6,780 — 6,780 — Foreign currency forward exchange contracts not accounted for using hedge accounting 165 — 165 — Total asset $ 119,394 $ 2,150 $ 116,434 $ 811 Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting $ 9 $ — $ 9 $ — Fair Value Measurements at December 31, 2022 Total Quoted Prices in Significant Other Significant Assets: Short-term investments $ 150,833 $ 19,861 $ 130,174 $ 798 Interest rate swaps 6,758 — 6,758 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,189 — 1,189 — Total asset $ 158,780 $ 19,861 $ 138,121 $ 798 Liabilities: Foreign currency forward exchange contracts not accounted for using hedge accounting 68 — 68 — Total Liabilities $ 68 $ — $ 68 $ —

Share-Based Payments_ (Tables)

Share-Based Payments: (Tables)	6 Months Ended
	Jun. 30, 2023
Equity:
The following table sets forth information with respect to nonvested options for the six months ended June 30, 2023:	The following table sets forth information with respect to nonvested options for the six months ended June 30, 2023: Number of Shares Weighted Average Grant-Date Fair Value Nonvested options – beginning of period 168,730 $ 16.31 Nonvested options granted — — Nonvested options vested or forfeited (23,560 ) $ 13.59 Nonvested options – end of period 145,170 $ 16.75
The following table summarizes stock option information as of June 30, 2023:	The following table summarizes stock option information as of June 30, 2023: Shares Weighted Average Exercise Price Outstanding at January 1, 2023 441,580 $ 67.30 Options forfeited (15,960 ) 70.48 Options exercised (93,430 ) 55.57 Outstanding at June 30, 2023 332,190 $ 70.44 Options exercisable 187,020 $ 61.53 Options available for future grants 574,935
Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2023 and 2022 were as follows:	Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2023 and 2022 were as follows: (In thousands) June 30, June 30, Cash proceeds from stock options exercised $ 5,192 $ 810 Tax benefits 840 75 Intrinsic value of stock options exercised 5,773 698

Net Income Attributable to In_2

Net Income Attributable to Inter Parfums, Inc. Common Shareholders: (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings per share:
The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows:	The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Three months ended Six months ended (In thousands) 2023 2022 2023 2022 Numerator: Net income attributable to Inter Parfums, Inc. $ 34,952 $ 27,617 $ 89,020 $ 62,916 Denominator: Weighted average shares 32,006 31,845 32,012 31,843 Effect of dilutive securities: Stock options 156 107 149 138 Denominator for diluted earnings per share 32,162 31,952 32,161 31,981 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 1.09 $ 0.87 $ 2.78 $ 1.98 Diluted 1.09 0.86 2.77 1.97

Segment and Geographic Areas_ (

Segment and Geographic Areas: (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Information on our operations by geographical areas is as follows:	Information on our operations by geographical areas is as follows: Three months ended Six months ended (In thousands) 2023 2022 2023 2022 Net sales: United States $ 111,436 $ 78,444 $ 192,890 $ 146,946 Europe 197,808 166,287 428,077 348,469 Eliminations — (6 ) — (12 ) $ 309,244 $ 244,725 $ 620,967 $ 495,403 Net income attributable to Inter Parfums, Inc.: United States $ 15,567 $ 9,991 $ 25,910 $ 16,505 Europe 19,385 17,626 63,110 46,411 $ 34,952 $ 27,617 $ 89,020 $ 62,916 June 30, December 31, 2023 2022 Total Assets: United States $ 313,261 $ 278,090 Europe 1,048,040 1,052,004 Eliminations (9,637 ) (21,552 ) $ 1,351,664 $ 1,308,542

Recent Agreements_ (Details Nar

Recent Agreements: (Details Narrative) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022	Apr. 30, 2021
Business Acquisition [Line Items]
Purchase price, period cost	$ 152
Acquisition costs, period cost	3.1
Cash held in escrow is included in other assets	$ 1.2
Long-term debt, term	10 years	10 years	4 years	10 years
Long-term line of credit	$ 130.4	€ 120,000,000
Description of debt instrument interest rate terms	one-month Euribor plus 0.75%
Debt instrument, face amount | €		€ 80,000,000
Variable interest rate	2%	2%
Fixed interest rate	1.10%	1.10%
Minimum [Member]
Business Acquisition [Line Items]
Depreciated over a range	7 years	7 years
Maximum [Member]
Business Acquisition [Line Items]
Depreciated over a range	50 years	50 years
Land [Member]
Business Acquisition [Line Items]
Purchase price, period cost	$ 62.2
Building [Member]
Business Acquisition [Line Items]
Purchase price, period cost	$ 89.6
Interparfums SA [Member]
Business Acquisition [Line Items]
Ownership percentage				72%
Roberto Cavalli [Member]
Business Acquisition [Line Items]
Description of recent agreement	The license became effective in July 2023 and will last for 6.5 years.
Lacoste [Member]
Business Acquisition [Line Items]
Description of recent agreement	The license becomes effective in January 2024 and will last for 15 years.
Rochas Fashion [Member]
Business Acquisition [Line Items]
Description of recent agreement	we entered into a new license agreement modifying our Rochas fashion business model. The new agreement calls for a reduction in royalties to be received. As a result, in the first quarter of 2021, we took a $2.4 million impairment charge on our Rochas fashion trademark. In the fourth quarter of 2022, we again took a $6.8 million impairment charge on the Rochas fashion trademark after an independent expert concluded that the valuation of the trademark was $11.3 million. The new license also contains an option for the licensee to buy-out the Rochas fashion trademarks in June 2025 at its then fair market value.

Inventories consist of the foll

Inventories consist of the following: (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials and component parts	$ 173,660	$ 146,772
Finished goods	186,358	143,212
Inventories	$ 360,018	$ 289,984

The following tables present ou

The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs use (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
Short-term investments	$ 112,449	$ 150,833
Interest rate swaps	6,780	6,758
Foreign currency forward exchange contracts accounted for using hedge accounting	165	1,189
Total asset	119,394	158,780
Liabilities:
Foreign currency forward exchange contracts not accounted for using hedge accounting	9	68
Total Liabilities		68
Fair Value, Inputs, Level 1 [Member]
Assets:
Short-term investments	2,150	19,861
Interest rate swaps
Foreign currency forward exchange contracts accounted for using hedge accounting
Total asset	2,150	19,861
Liabilities:
Foreign currency forward exchange contracts not accounted for using hedge accounting
Total Liabilities
Fair Value, Inputs, Level 2 [Member]
Assets:
Short-term investments	109,489	130,174
Interest rate swaps	6,780	6,758
Foreign currency forward exchange contracts accounted for using hedge accounting	165	1,189
Total asset	116,434	138,121
Liabilities:
Foreign currency forward exchange contracts not accounted for using hedge accounting	9	68
Total Liabilities		68
Fair Value, Inputs, Level 3 [Member]
Assets:
Short-term investments	811	798
Interest rate swaps
Foreign currency forward exchange contracts accounted for using hedge accounting
Total asset	811	798
Liabilities:
Foreign currency forward exchange contracts not accounted for using hedge accounting
Total Liabilities

Derivative Financial Instrume_2

Derivative Financial Instruments: (Details Narrative) € in Millions, £ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2022 GBP (£)	Apr. 30, 2021 USD ($)	Apr. 30, 2021 EUR (€)
Derivative Instruments, Gain (Loss) [Line Items]
Loan amount | $		$ 54,300,000			$ 130,400,000
Long-term debt, term	10 years	4 years	4 years	4 years	10 years	10 years
Derivative swap interest rate		2%	2%	2%	1.10%	1.10%
Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Forward exchange contracts | $	$ 38,000,000
Maturity of foreign currency	1 year
Euro Member Countries, Euro
Derivative Instruments, Gain (Loss) [Line Items]
Loan amount | €			€ 50			€ 120
Euro Member Countries, Euro | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loan amount | €						€ 80
United Kingdom, Pounds | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loan amount | £				£ 2

Leases_ (Details Narrative)

Leases: (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease, weighted average remaining lease term	5 years 7 months 6 days	5 years 7 months 6 days
Operating lease, weighted average discount rate, percent	2.80%	2.80%
Operating leases, rent expense, net	$ 1,500,000	$ 2,900,000		$ 1,300,000	$ 3,100,000
Operating lease, payments		2,600,000	$ 2,800,000
Noncash additions to operating lease assets		$ 2,400,000	$ 500,000

The following table sets forth

The following table sets forth information with respect to nonvested options for the six months ended June 30, 2023: (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Equity:
Nonvested options beginning of period | shares	168,730
Weighted average grant date fair value, beginning of year | $ / shares	$ 16.31
Nonvested options granted | shares
Weighted average grant date fair value, nonvested options granted | $ / shares
Nonvested options vested or forfeited | shares	(23,560)
Weighted average grant date fair value, nonvested options vested or forfeited | $ / shares	$ 13.59
Nonvested options end of period | shares	145,170
Weighted average grant date fair value, nonvested options end of period | $ / shares	$ 16.75

The following table summarizes

The following table summarizes stock option information as of June 30, 2023: (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Equity:
Options shares under option - beginning of year	441,580
Weighted average exercise price shares under option - beginning of year | $ / shares	$ 67.30
Options forfeited	(15,960)
Weighted average exercise price options forfeited | $ / shares	$ 70.48
Options exercised	(93,430)
Weighted average exercise price options exercised | $ / shares	$ 55.57
Options shares under option - end of year	332,190
Weighted average exercise price shares under option - end of year | $ / shares	$ 70.44
Options exercisable	187,020
Weighted average exercise price options exercisable | $ / shares	$ 61.53
Options available for future grants	574,935

Cash proceeds, tax benefits and

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2023 and 2022 were as follows: (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Equity:
Cash proceeds from stock options exercised	$ 5,192	$ 810
Tax benefits	840	75
Intrinsic value of stock options exercised	$ 5,773	$ 698

Share-Based Payments_ (Details

Share-Based Payments: (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2018
Subsidiary or Equity Method Investee [Line Items]
Income before income taxes		$ 55,475,000	$ 45,445,000	$ 148,061,000	$ 106,668,000
Share-based payment arrangement, expense		430,000	$ 740,000	$ 860,000	$ 1,180,000
Weighted average remaining contractual life of options outstanding (in years)				2 years 4 months 24 days
Weighted average remaining contractual life of options exercisable (in years)				7 months 6 days
Aggregate intrinsic value of options outstanding and options outstanding		21,500,000		$ 21,500,000
Aggregate intrinsic value of options outstanding and options exercisable		13,800,000		13,800,000
Unrecognized compensation cost		$ 2,000,000		$ 2,000,000
Options granted				0	0
Adjusted for stock splits	211,955
Recognized as compensation cost	$ 4,800,000
Treasury Stock, Common [Member]
Subsidiary or Equity Method Investee [Line Items]
Shares repurchased				85,060
Shares repurchase value				$ 11,289,000
Interparfums SA Subsidiary [Member] | Employees [Member]
Subsidiary or Equity Method Investee [Line Items]
Aggregate shares to offices and managers		69,609		69,609			88,400	26,600
Recognized as compensation cost				$ 4,200,000		$ 3,000,000
Number of share distributed				93,489
Interparfums SA Subsidiary [Member] | Officers and Managers [Member]
Subsidiary or Equity Method Investee [Line Items]
Aggregate shares to offices and managers								133,000
Equity Option [Member]
Subsidiary or Equity Method Investee [Line Items]
Fair value of shares vested				$ 100,000	$ 100,000
Equity Option [Member] | Minimum [Member]
Subsidiary or Equity Method Investee [Line Items]
Options vesting period				4 years
Equity Option [Member] | Maximum [Member]
Subsidiary or Equity Method Investee [Line Items]
Options vesting period				5 years

The reconciliation between the

The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income attributable to Inter Parfums, Inc.	$ 34,952	$ 27,617	$ 89,020	$ 62,916
Denominator:
Weighted average shares	32,006	31,845	32,012	31,843
Stock options	156	107	149	138
Denominator for diluted earnings per share	32,162	31,952	32,161	31,981
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic	$ 1.09	$ 0.87	$ 2.78	$ 1.98
Diluted	$ 1.09	$ 0.86	$ 2.77	$ 1.97

Net Income Attributable to In_3

Net Income Attributable to Inter Parfums, Inc. Common Shareholders: (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings per share:
Antidilutive potential common shares outstanding	0	0	0	0

Information on our operations b

Information on our operations by geographical areas is as follows: (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 309,244	$ 244,725	$ 620,967	$ 495,403
Net income attributable to Inter Parfums, Inc.	34,952	27,617	89,020	62,916
Assets	1,351,664		1,351,664		$ 1,308,542
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	111,436	78,444	192,890	146,946
Net income attributable to Inter Parfums, Inc.	15,567	9,991	25,910	16,505
Assets	313,261		313,261		278,090
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	197,808	166,287	428,077	348,469
Net income attributable to Inter Parfums, Inc.	19,385	17,626	63,110	46,411
Assets	1,048,040		1,048,040		1,052,004
Eliminations [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales		$ (6)		$ (12)
Assets	$ (9,637)		$ (9,637)		$ (21,552)