IPAR - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Interparfums Inc. 2024 Fourth Quarter and Year-End Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Karin Daly, President at the Equity Group and Interparfums' Investor Relations representative. Thank you.

begin. may You

Karin Daly

Shamali. Thank you,

on Chief the Officer, be us today Atwood. call Officer, Jean and Executive Financial Chairman Madar, Joining will and Michel Chief

this would On from involve which projected materially cause unknown other to company, actual of and and may I results. uncertainties that behalf note forward-looking the known that different factors conference risks, statements, risks call contain be like may to

heading Exchange Forward-Looking in the and company's with Commission These under may and the be found factors. factors Statements the risk filings Securities

Forward-looking only are discussed. speak update no as statements on of information which made, obligation the they the undertakes date and Interparfums to

As a operations XX% European-based the reminder, segments: company's consolidated Interparfums owned French X United business Interparfums and SA, include through subsidiary results operations. States-based

to Madar. turn to pleasure over my Jean? call Jean the now is It

Jean Madar

good joining high Thank a was it sales earnings. record year thank everyone, morning, today's and on you, call. on and Karin, with closed us We XXXX you and quarter a for us. great fourth note for

Our and per sales the impairment guidance diluted beating shares year, cumulated $X.XX of an before our the to was adjusted for earnings $X.XXX $X.XX. billion

It new Lacoste Roberto was and initiated we Cavalli. brands, and the for also year sales the X distribution

license starting XX XXXX. agreement an next direction renewed Cleef also extending will Van bring our that agreement We our And we Arpels business fragrance years our under & the into signed partnership with decade. also the off-price

and year, over but the magazine, companies Sustainable XXXX, our that commitment - been also was most World's which awards ones for achievements a economic the terms have ranking, of rewards Companies recognized period this are of Growth Best We Time growth in proud exemplary the environmental number we in XXXX. the inclusions of XXX most and

of Interparfums SA XX% XXX companies the owned out our in Specifically, the world. among #XX ranked all subsidiary,

talking -- business about business. to Talking

Choo I year ongoing increased Jimmy largely of by the by brand the portfolio the driven For in success our the franchise. sales Choo, for a Want row, largest in the X% year second

legacy a the continued GUESS success a our mid-XXXX, entered momentum Iconic. in our excess XX% Donna very $XXX and of of had generated scents, brand which programs strong plus year, stellar growing GUESS as result joined the fragrances, house. its million. Karan/DKNY initial portfolio fashion The pillar, with of XXXX the also already of performance sales robust from new

opportunity I would take like an on now to Ferragamo. provide an update to

did. took license last X the and years U.S.A., Ferragamo As up initial a the market are for Ferragamo us for And clean we a that important and to going you Italy blockbuster we we ago, blockbuster, to are focus in very The know, X the is distribution for launch the was largest which Mexico. first years. new

$XX approach Fiamma, new It is to on the the the new brand behind and invest million XXXX and in visual we plan merchandising company. advertising called over

innovation. be major texture the Creative the shapes, of with the core true So And it of developed new Ferragamo. organic of especially represents first elements blockbuster design launch Director a the the it the Fiamma brand, accretive vision of the and fluidity, will Maximilian aesthetic, brand Davis, incorporates

model, birth the it modern against Florence. a and of the backdrop model shot Mario of the is new expresses advertising we with advertising, of photographer, and of is it set features brand, and the the campaign the Regarding top super Florence city Sorrenti The the community. headquarter the Spakowski. Karolina top place vision

this we blockbuster new hope Fiamma. for big So a have

also Original, of sales in we place Lacoste expand or And XX.XX. of newest $XX expectations insight new X% million space. standard and in its Lacoste transforming first year, far line. line are original L. both setting presence commercial relaunch brands, blend a and in our the creativity, achieving in on we'll with redefined market for in we the under Touching not our strong its Through market. popularity its just sales women We the total a management, strategy, our worldwide. XXXX, our year men did over exceeded innovation, and Lacoste this

our prestige top Roberto line first portfolio, launched than Regarding we scent year in Cavalli to expectations fragrances in million inherited our our Sweet XX Earlier X% in in met adding its at sales new the in called months. revamped a the Roberto Ferocious. year, Cavalli, less $XX and

Wild fashion fragrance bold at mist. also fashion & full have In Cavalli collection introduced Just brand the and social and hair Cavalli media blockbuster it with body a embracing called comes partnership swing. Cavalli very is time platform perfect in with resurgence the its Serpentine. is widespread XXXX, designs, And for the icons We we and of buzz Cavalli, openings, store Heart, new our important in

'XX, and Off-White Saks are registered In stores sold for XXXX, department specialty and store a commercial for women in III brand. men of trademarks and, And fragrance all use Class like cosmetic December brand Neiman signed and Interparfums begin for of Today course, Off-White we names fragrance and in Marcus online. will products. fragrance

XX%, increased Europe X% Interesting is for gains largest XXXX Travel to from and continued by XX% Africa, sales markets South Eastern Pacific and XX% sales X strengthen for Pacific XXXX. grew Asia and Europe Western Our America for in by and North compared to XXXX. to Central Western X%, and America, Retail of Middle also respectively. and North XX% Europe Asia East The America, attained and notice X%

is continue versus on an for trying wins is to channel, quick and to brand goal Retail our promotion. building Travel focus get to important

we continue retailers, sales, direct of from our earlier. to XX% X our XX% net retail, and travel As with our approximately In represented consistent up to XXXX, year prioritize always, strategy. including will wholesale retail partners, sales established

in Italy of specifically e-commerce demonstrated Amazon success our our U.K. we for and in part to the omnichannel hub XXXX we began managing Divabox achieved channels opportunities brands. model due previously all business, and Spain. in exploring on into XXXX, sales one in As Italian markets, Much of actively services, beginning in e-commerce are largest expand including success disclosed, our new has it to France. our and including This is the its

driven online it And growing very sparking media increased platforms creators since has who social and niche with page inception. while also We various gaining across purchasing launched confident excitement TikTok by its Consumers week-over-week shift on luxury only not are influencers sales. it increasingly rapidly digital are has started around the discovery, also in content recently increasing purchases This but and momentum our online small, fragrance shop. fragrances own scents. fueled been

collections, demand consumers want. greatest fragrances multi our ahead stay premium, anticipate ultra-premium of of the trends to is to we luxury strengths what One from ability right of growing scent for and our emerging the

fragrance seen along among neutral have scents in among concentrated particularly formulas. use gender shift surge We towards males, long-lasting highly teens, a with the and

the as evidenced all markets across sales in demand in are major brands by compared to XXXX in globe increased XXXX. Our

to We also deeper scent fragrance, on enticing understand attention, with experience level. up emotional a connect the and art them its pick of a the capturing consumers' it

This engagement where identity uncover through our reflection fragrance new brands the we their true opportunities our becomes evaluate and of is which for a lens growth.

energize primarily XXXX, new While the fragrances have that brands. on introduce will we past X years extension, in bold our focused

product I in preferences before, mentioned for and highly Rochas, concentrated of elevated From high-quality, for to extension, blockbusters XXXX launches aligned evolving also debut also are our we With crafting regards new pipeline, the Cavalli. with today's scents to Ferragamo, we as have consumers. fragrance blockbusters pillars for

collections stores the have Lagerfeld for duo We are including GUESS our portfolio iconic Explorer also family in our Montblanc, with we of Jimmy we nearly X men Starwood, for of rest for MCM new have have collection Karl fragrance Choo, the DKNY we and for largest with spring. Extreme. are and across expanding the the new all we enlarging will multi-scent extension Ungaro. a And and see extension for Explorer men in course, also and brands, the

more in star dedicated concentrated open with niche for brand Paris welcomed channel, for initially XXX-point first to with launched this XX Coach Solférino. along of the long-lasting the of a entirely developed year It demand brand ultra-selective keeping mark sales, to our in also version through be scents. dedicated creation perfume will perfumers distribution an also sites. fragrances is of early store a e-commerce Men, by increased called collection proprietary XXXX will highly no and Road than

Solférino also can be position to applied is while our our market. goal that fragrance across strengthening our collection, portfolio gain high-end With insight in the the robust

fragrance the also of XXXX, we market, our thoughtfully smaller brands are As high-end of into and XXXX we pruning Dunhill. portfolio we step end in discontinued

part license growing And through faster. of in of our these represent XXXX, expire. up our like to will our and these while losses other brands small make new a and be Solférino portfolio, and license Off-White new goal Boucheron the brands for brands also core will Both

streamlining also are chain. our supply We

in order in Jersey to same on third-party our relied shipping, our we recently reduce an services operations U.S., through costs. the European-based as decided our we of years to effort and XX New and we providers operations, model streamline historically on And packing, warehouse our XPL warehousing the such have operated own For for logistic have for in fulfillment. that transition overhead

complete leveraging logistic competencies. on plan will our us our this focusing customers partners and XXXX. As our core while third-party to business continues by to efficiency enable We to grow, serve enhance transition June better

momentum the but than positive recent years. global pace its a continues fragrance the in more in ahead, Looking at slower market trajectory,

and potential We other are fluctuations. headwinds, also including facing a challenges range of tariffs, regulatory currency

working source potential with our metal from navigate multiple suppliers, like from we side, tariff and plastic evolutions. actively our the China, particularly in buy components tariff to are regions We and certain components China, On caps.

don't pass increase our them to our wholesale in partners. While tariffs possibility and we this remains on so is goal to a on components have to year, mitigate impact, retail cost an

and potential Additionally, U.S. in exporter Europe, in to made export as are countries finished American-made we taxes. goods and closely finished importer an monitoring goods of of import an changes neighboring

all adjustments. on rise, pricing Should potential to possible offset these explore imports, the we costs will including strategies impact

taking we do we that cause this challenge, the of this for concern significant believe pauses While believe is not as factor most industry represent approach. they

highest compliance On safety worldwide. to And mitigate we complex will landscape the meets navigate standards team all to and regulatory product continue potential our of the the regulatory to ensure prepared disruptions. any are our side,

a innovate parameters. unprecedented as compliance changes, seeing disruptions. are we necessary them place to products to are we effectively our ensure reformulating strategies and chemical minimize address have of lot continuing in to includes safe within where while safety we While This

are banned many few substance fragrances. that a There prevalent are in

banned we Cosmetics MoCRA of formulas successfully FDA we past. need that when in of shift lilial gone was a and expect similar cosmetics. registration, our X oversight Modernization next Act called The On to major a and Regulation process about recent through XX% and the reformulate packaging We over represents the years, listing in have of

by MoCRA compliance meet so substantiation we have that safety to requirements We and listing, rigorous measures registration. implemented product abide facility mandatory

and anticipating activity to already the also state level. navigate increased the prepared legislative Given deregulation, on focus we are at

of To us brand uncertainties of and for the expertise, creative fragrance the are to sustaining depth with close sales earnings, and portfolio innovative market to of well to our economic evolving another adapt success. and agile position year combined ability record our and geopolitical and strength the our our workforce diversity and key prevail, conditions while current

I our will review financial, Michel Michel? it of a turn now over to for

Michel Atwood

Thank Yes. operations. Jean, discussing down European results by before U.S.-based our units, begin and and you, the will into good breaking them I X operating morning, consolidated everyone.

as line growth delivered release, top margins. earnings seen Overall, expanding you've our significant from we while

earnings guidance. our beat and sales also We

for grew the As $XXX final the the we sales to reported, full in million respectively, year consolidated quarter both and $X.XXX and year. XX% billion, net

with from line at Gross net investments new brand SG&A XX and strengthen to the prior portfolio. and our for of only in in XXXX XX.X% in full and at on basis points up growth, competitive margin year. sales XX.X%, a was A&P is support quarter awareness, significant with X X year We largely ongoing with year percentage maintained consistent as which especially broadly stay the brands fourth earlier. XX.X% periods was

devoted year. In total, is which $XXX than in we X% last million A&P, higher

will we investments However, get some A&P a was into of net percentage first higher target believe as is we ROI. of our which A&P XXXX the where of of XX.X% phased a as we half sales, XX% below our

$XXX Royalty XX.X% SG&A, year XXXX, period. our to X% line an in is generally best-in-class with year-over-year in that slightly of which are X-year million, operating approximately and expenses, rates. That consolidated loss our increase prior ahead at included a income XXXX operating and margin of run before averaged XX% brings in impairment

french Our and year was assessment. a rate XX.X% This the rate basis which had points when U.S., between million is XX.X%, effective in from for entities. tax the XXXX by XX a our rate blended $X Italian we tax improved

different segments. our into moving Now

brand in increase on year the finished X% fourth to the a XX% XX%. slightly result to points for by points, mix, achieving quarter we by XX of the full note, and Gross sales operations, a year the as were basis basis a year. expand lower European-based our unfavorable channel for strong margins fourth XX% quarter but For the sales in did they leading and XX increase reaching

for expense a basis year fourth but year, decreased percentage of sales XXXX. basis period dollar by first year the into the to on the SG&A expenses as of prior the quarter of full increased the A&P for points our as some and XX net we a full face half compared

the rebalance ROI We continue from this our across investments in consistently with a first expenses expect in shift A&P half as of to European-based result to higher we what XXXX. the XXXX better achieve of did we our operations as year

fragrance brands a French which quarter, the to and our million million core the million. acquired provide to relating some nonrecurring, fourth allocated fashion the acquired ahead fashion competency line of Rochas supplemental Fragrances to manages Rochas in perform fashion for fragrances. $X business European-based both recorded expectation context, we balance of XXXX, charge We our during in we the communicated $XXX continues business. to previously our and and with when the To As impairment noncash $XX expertise. trademarks subsidiary,

income fashion need asset. been business we this and challenging. to triggered fashion solutions seeking of year. European-based the the discussing to with. impair this alternative million we have our net we operations this time, will more are to told, the All million $XX million But At actively for $X After full business Rochas' balance has impairment, which grew the out the attributable on started $XXX XX% original sheet for that

basis increase was XXXX, story, Now of we mix. quarter similar for fourth turning XX% channel XX but from to in achieved by U.S.-based the this points was to down margin sales gain quarter, the operations. Gross unfavorable in and XX.X% a year. leading a the It's driven XX% product fourth

margin expanded basis points for XX.X% mix. to and year, However, brand as of channel gross the result a by XX favorable

our to in direct As retail the Jean expanding gross we is are accretive. which channel noted, margin U.S.,

operations, wholesalers will basis year's while the continue fourth We to dollar strategy on XXX strong this quarter. of with on relationships percentage European-based SG&A our partners. as Similar but net maintaining as preferred focus to prior increased basis sales key decreased a from a points

XX.X% net well by result of infrastructure year increased to a year. the basis in activities. full for employee of XX as continued attributable $XX grew a a X% SG&A On basis, investment the headcount and full million percentage as growth sales support increased to U.S.-based to Overall, points as operations income of to the business as A&P

the in sales last fruit and We our investments inventory in working million. program closed of cash to benefit of with $XXX bear capital to equivalents started cash, managed year. financial we year strong as inventory XX% throughout million With the position and short-term growth, a to compared optimization $XXX the flat keep year

$XXX net delivering cycle, and of conversion of cash our million income is which operating XX% from XXXX. improved in is million significantly the income XXXX, $XXX equivalent up XX% or cash also to in net We this flow of

by Our to primarily and long-term debt million we was took the loans acquire our out approximated $XXX headquarters. that driven

reflects just a From in while flow from XX -- days in collections. discussed, prior XX mix, outstanding with 'XX. do receivable up anticipate in It perspective, accounts XX% issues the year strong partnerships, any days was with XX days channel cash our increased to XXXX from from not XXXX, we as change but

to Directors This payout per EPS. X% share prospects, per in our yesterday, our given As announced approved long-term generation from balance up increase confidence solid XX% Board growth in $X.XX operating a a sheet, $X annual share, cash in release of represents press expected and XXXX. in dividend our on our the XXXX

to we address open call guidance. the Before for wanted I questions, XXXX

As matter, modest Jean momentum our pace. continuing, the that more fragrance for most have stated and but a peers markets at is of

and foreign with guidance years, reaching $X.XX the actually X contracted -- and earnings our time their seeing competitive. beat dollar down most first $X.XX the as euro January for XXXX, did exchange XXXX more the throughout slowed January headwinds versus sales We're XX. category in against against becomes the margins in in $X.XX competition operating we While on and in of also

that and FX guidance in EPS net we $X.XX of of remain $X.XX sales and know across XXXX. us confident already points impact maintaining another that first margins, about our possibly X% XXXX are in board. be extend XXXX record and year of will share, headwinds these per the growth quarter the headwinds both a and billion We X rest of the these by eroding competitive into Despite will

update will progresses. this guidance We year as the

With lines questions. that, for operator, please open the

Operator

first with from the Our D.A. comes Davidson. Bolton-Weiser Instructions] question Linda line [Operator of

Linda Bolton-Weiser

Yes.

So I talk -- you you of sense was issue I And you the good on tell and Can curious you the that where could a you could channel of was were felt was I there there? stand year the I this I thought kind completed shape. destocking was us had think point? wondering in what's mention release, know things just think but it of about inventory XXXX, if a last Because that press industry. in us going in at in if give you

Jean Madar

will which November and months, a X last anticipating say Linda, did I good in that happened, reduced. question. sell-in way. that say And Christmas thank and for X, gap you the sell-in sell-out your sell-through, we by a the December, in will I the between good

as to Michel, add So whole want severe it it's XXXX. to as the something? be in going was you not year of

Michel Atwood

moderate. small point And quarter, our a sell-in that months comfortable say, us about X in really Most sell-out. still know, destocking the but X would first of this it of points X that time, we're the our to between we a in think the behind was saw this at in I difference as worst I is happened There feeling gap the Linda, Yes. was in area. effect, you fourth of year.

Linda Bolton-Weiser

Okay.

Sounds always good. your been by competition competitive, And share you do I you mean about of you in talked I about now that has the share big then category mean of XXXX? can when over remarks, What yourself you And was kind competition, expect the of market do at players market time. kind gain end just curious and gaining the changing?

Michel Atwood

Okay.

and to look outside we So Linda, is out look data there. really I happening mean, you the if the what's at at really like -- understand

So obviously, see that competitive across we publicly are is what has are peers, the the traded. the looking board, our peer we of below And the ones group been at overall market. can really our growth

So very, very lower. which sell-in, been been impacted not industry, the probably broader the think strong, while And very our is the market whole in group and thing obviously destocking reflected I peer good has just has has very, sales, us. this

we've the On as this operating our our and happening surprised go trend we down XX think our eroding by to at what and been the people start actually margins market you're And Again, past, a I margins. And slows of looking was I if our you probably think was at have eroding margins, to is the competitors category on definitely what's been the see very think always into strong if competitors. in more anticipate I when we getting pretty seeing where I been it's months that look able industry based difficult growth, less. think But competitive. look market are investing whole the the flat, you is margins Jean? the across at of clearly details disclosed. margins hold trailing to had operating most what's

Jean Madar

we going impressive. for of brands Yes, we Rochas, think blockbuster quite most gain market agree. have Cavalli, blockbuster. Ferragamo, that for mean yes, to MCM. the year important the is for I We in to -- have are we innovation I of share of an tend that It's level for for XXXX? The blockbuster

and important Montblanc have extensions brands Jimmy and We like Coach. important Choo very on

the it more So a at continue will share. yes, we tools think I have but gain moderate I pace, market to think

Linda Bolton-Weiser

think or it month just it sounds year is launch? then question part be rollout exciting. in? a a What of blockbuster last global or will gradual Ferragamo of that what And my the And launches more do the you

Jean Madar

It's some there. second going We're going to I U.S.A. start is second to will in the Important in said, seeing how as next accelerating market going see start sales quarter. But quarter markets I'm the week to quarter. to be, third in China the

As been new we has we but for right in challenging of with you also. quite the know, China while, think level it the a promotion, that promote can Ferragamo

you percentage are China, terms know, not competitors. we our of been Even below though of as has sales, in

We -- as Italy, possibility high. for represented think largest that Ferragamo. Ferragamo also market quite we the interesting us. it Mexico think is have market That's some be and share Mexico I will X% possibilities only U.S. with for some Ferragamo. But of in the

Operator

next comes Ashley line from Jefferies. of Our question with Helgans the

Ashley Helgans

to just last you'd but this you we've years for said moderate robust, off remain first, that in few the years. market year, So seen expect strong going the is the of

markets you more normalizes, Just should if specific in can market moderation then others. versus seeing talk curious you're promotional expect we for certain what the if levels? maybe as about markets, And any

Michel Atwood

Okay.

growth, -- going a started I'll points. couple to And very at third XXXX, quarter maybe look probably first in strong. question. more quarter. What the also okay? in the of first give was really So I was we quarter. Ashley, really really, data I if it fourth U.S. strong, XX% And was I'm you the off but is take XX% up you and XX% up mean, overall, mean the saw still in things the market moderate I'll take

to just saw illustration at U.S. a on you We much That's pretty that numbers. give global level. the an

quarter First XX%. was

was X XX%. still second then Quarter slower. was The quarter strong and was quarter very X

XX% markets year for the the in and global the level that at quarter. top X% track we finished fourth we at So about the

pretty significant year. what in half had the of versus slowdown that the in did first So we we growth a see

able can to that? kind Jean, still Going then On -- to which chime want forward, take do I think grow you digit, maybe we promotionality, industry in. I the of have is been by. what historically mid-single is seeing

Jean Madar

more to I Yes. the that, in XXXX at promotionality see is we don't say remarks, that we're mentioned I XXXX, think will strong. investing to almost and advertising think Yes, in very in promotion going his the like really in Michel than would be it's like I same money level.

We in this without and million. what which money advertising have are invested what's is spend And sales the million in that promotion. market on is around partners, counting future I our almost $XXX to we our $XXX the going This another side, distributors ensure in spending, estimate really for us.

Michel Atwood

Yes. I would Jean, we also about on just maybe talk build as promotionality.

As not people typically category you price. on where know, is a this discount

I generally of promotionality, I more lot because think did fourth talk pricing. gift of of -- in about the in see offers. about an when a you it's lot quarter has think the sets usually there And the we been a number uptick

gift priced know, are we up to competitors. that pricing you by that the a lot, the lot of to been value We took As in quarter. And more no a offer in pretty for XXXX, I brands I pricing. has some we're more not those fourth clearly there of of take form XXXX, did but had taken and we pricing our maybe that have think take saw lot And more in a sets. not planning in think pricing themselves they

Operator

Piper of Wolfmeyer Sandler. comes from the Korinne with Our line next question

Korinne Wolfmeyer

on I'd touch like in of of the building brands bit the blocks performance a to kind XXXX. by little

Cavalli was top if the And from Lacoste in I'm there X%, about points. a of There was about correct. grew and XX% some commentary addition X release then understanding Dunhill. press our that is added maybe the So headwind the

the business much was a negative. So that bit struggling grow was rest or maybe means as or the of little didn't

softer going what little confidence with bit brand here on a touch So some on recovering maybe gives you can bit and and those you of what's performances XXXX. those a in

Jean Madar

Michel?

Michel Atwood

Yes.

the So brands, Korinne, of of focus mean, brands a and the new inevitably, add want large you brands portfolio. and on I biggest to when lot you parts

declines Some be by number of a things. the of can driven

footprint. by is Lanvin, this has entirely you the take a year, If declined example, brand driven for this like which

in So of softer. know Eastern been Europe Montblanc a the and in where well is has as lot China, been business the market there Russia issues as have where we

is brands, we're focus what make So give we ones, the want to continue and we on those the largest to them inevitably, And then disproportionately. not to attention our investments. right little do -- sure on level of really focus and growing

Sometimes could of this things innovation that. and all phasing by like be driven

be going volatile So little to their footprint? to always and of sensitive be going more typically -- little size the innovation a bit Jean? are a and smaller because brands inevitably geographic more to

Jean Madar

very brand yes, that will say in totally. are the us smaller. that Renta. size, are on they brands Yes, I but smaller Oscar la important, not are work hard They less we a important for is de

But We have the internationally, it sales. in challenging. U.S. are a footprint to the able But great is maintain more we

not bad maintain of also smaller in maintain environment, Cleef, already on able to are We to sales this super the this level Van competitive course, the which of it's brand. sales But is a for brand us. for

is is that will a and a -- we is collection already more Also, indication on because that for great launched instance, in innovation it know, MCM will now a have even nice brand that we depends timing. growth. grow that the this XXXX important -- have We to going where is for brand, for launching some key be smaller have like

Korinne Wolfmeyer

quarterly Very helpful. performance about on gross what as more a And and course perspective? thinking should if margin then you give just the and the little far be bit Michel, puts takes from maybe, a as operating and we baking the in over us of cadence you're year could context margin

Michel Atwood

Okay.

what the as line, business is XX So quarter. next on for top first the provide next line, are X that years, a we like I don't know, the quarter. to not we us Overall, impact on run to we generally you our quarterly going factors in like to would top the say necessarily guidance have the because

is impact phased about year at loss September. first the to the X the across We which quarters one it point and X of of obviously that, going because we across the that's is first The portfolio. know Dunhill, out the end

indicated in I FX. last my year is quarter. close -- was to thing as other And in first the prepared The remarks, FX as $X.XX you

between Right where to now, land, oscillates really know going don't but we're we it $X.XX. $X.XX

So FX thumb, that half rule by us we that just impact. of believe about hits of

you quarter it's or the $X.XX are the now of look versus expecting FX that's at points, Dunhill So impacts. if So okay? flat, mostly driven by to about a the but we about a first $X.XX, right be X

this channel that, sets any gift obviously, nor we the at seasonality point But for like in in there's we're by on a gross significant expecting gross footprint. and and but of -- On margins time, basis. the margin not expecting speaking, generally things we're year generally when not any really in quarter changes normal -- our significant speaking sell

SG&A remarks, into the the we as probably first quarter. think through prepared A&P clearly On did read I face some you side, my

I better of have, think get felt launches we that a we we much behind the would our ROI that blockbuster a lot for money.

will most to year ROI. first that adding we're do next that but we that in reduce think our we're And did our we have continue need fourth more. that adding when again Historically, get fourth amount better in we the we quarter. to probably significant the We we them the will dollars, where a quarter. to successfully necessarily believe quarter, we been spent spending only a balance also has And And this not year. strategy

result you in expect as and quarter. the will will can erode a in be higher So operating margins than the that the first -- likely, of that A&P more

Operator

line the Susan Anderson of question comes Canaccord next with from Our Genuity.

Susan Anderson

we whereas just top how I maybe you following question, looking on that block XXXX, such little bit of give continued brands or growth, at could if the the guess your some maybe you launches like you there coming color to up give single-digit of trend? should if top a Or growth just maybe will on upside building just then expect some a is larger from as more think brands business? performance newer the the guess I Lacoste Ferragamo low maybe there. from from could color be

Michel Atwood

this. want Jean, -- can in chime you and to I'll maybe, on then you build

where those GUESS. growth Donna We're more MCM I going on to Cavalli, will our growth we're the -- going growth and look on brands have and significant Ferragamo, you what If significant at grow We'll next growth. We're where going on is to what clearly to innovation. you because on innovation points from significant disproportionately, have brands have that's those to that have innovation, Karan/DKNY, see Lacoste, on we significant think year. of on

of accelerate for of Montblanc, and that terms Jimmy brands. brands we is believe on like up our more is are build the strategy we innovation the X right XXXX. brands, seen the larger flankers for we where those growth will that looking moderate, growth In the this like Coach, innovation brands and we've be but to be those year, ramping like Choo And all that, the those program of a more happens are pace and to going XXXX when in

the by eventually of before the smaller Boucheron, then basically decay the portfolio, -- which Jean? which out is said to Dunhill, and our our phase some And continue brands on portfolio of in we'll some see with including end we will probably leading XXXX. what

Jean Madar

Montblanc, add had -- is what have will much Jimmy brands wouldn't extensions have smaller will have blockbusters. the what Choo, are This XXXX. for we we important I where as Yes. that largest Coach

important we come on be We for blockbuster order a it are will will XXXX. will now to have 'XX also be with -- X% see -- I this growth the to in growth at profitability. that for And interesting of working are our think looking XXXX and

we are more to promotion sets or -- going more not We instance, not anticipating, to are year. for gift next have

be clean. to going very it's So

Susan Anderson

and I you And quarter kind first of could don't start know if the you're then far. XXXX maybe about what so the just throughout seeing talk

trends sell-out. to then everyone trend in I similar changed a I it and knows, rough seeing sell-in could general may be had as beauty same And you're guess, general improved start, around if the talk as still between in guess, anything a about the some dynamic and if if has you're seeing whether Maybe fragrance, regions. Just year. in you

Jean Madar

Michel?

Michel Atwood

Yes, Jean? okay.

Okay.

point versus So sell-in maybe I'm going to around sell-out. address your

sell-in this significantly first at the did time, first to pretty and it was comfortable. of between point think the I X it months a pretty the think points. our in our In sell-out, we're smaller. X fourth we I in seeing, between -- we're year, And see we quarter, was feeling significant difference as X X said,

believe set this our I market. when we we broad question sell-out As competitive I overall across that is their sell-in certainly industry, said, from their versus looked particularly and Linda, the we when at at base got the a look the in

industry think this trend an of effect XXXX. is carryover I So that was probably a

And we're at think we're this feeling pretty there. point in that time, I good

seeing the have trends, think fragrance them remained has underpenetrated U.S., men. In everywhere is in else, and female. been more we're I historically, which No, the versus in a same terms men of the trends of lot

men category. more seeing the men, younger are entering We

whether -- continue We more of become then think analogy a craft to a with you pretty the will you see with we more knowledgeable I use to category, start long-lasting fragrances. to I with it's much like with cognac. for of the They going sophisticated. And become this wine, become start and we also become you start start I category, and you whether it's people use more. are more I'd as typically, more as -- sophisticated. forward, you as more they on to is with about seeing this that think everywhere more. think, whether which people become see see you to And invest the Jean? with it's trend, beer, move knowledgeable they fragrances, looking beers, beer people And

Jean Madar

as it out going the quarter. lower it of answer guidance for like fourth blockbuster, than rolling we happen? because is will second How quarter by your happen? at growth flow But said, the going the and to X% quarter. questions of third are don't by I of be first When to year. looking to blockbuster say coming. Yes, to We will give and on is I

numbers, will we first X% in I'm third that increase to not quarter, achieve we're So think the flat I I and put to much better but going going the to say to and fourth will little if this growth get second in not some a it's order surprised in be in XXXX.

Operator

Thank you.

question-and-answer We to have the turn I back session. would Michel reached closing the floor Atwood like to remarks. end for of the

Michel Atwood

Thank much, joining right. all thank for our today. you All you and very call

thank their to for I end call, all XXXX. hard teams like work again our Before I'd the in

our is us of the think I direct the And of they across contribution where whether the results. the the work reflection day, behind do extent of we unique are people. make lot and these it's and that success the a functions a to each brands, get you the that board, we Our see geographies and

a also events. of I'd to mention like couple upcoming

Ahead virtually. meetings be going in York Beauty here Cowen D.A. to I hosting TD the thanks Davidson Linda, will which held for be And the City. and And then Summit will inviting us. at joining I tomorrow, Best-of-Breed X, New Glowing March So on Jean be is Conference,

additional any really from number our lasers our questions, next we recent Karin representative. and please Daly you, and Group, have Relations found Equity most and a Her you the in good the If telephone Investor to e-mail release. call, forward can earnings thank And look conference contact day. be have

Operator

you. participation. And for lines your conference, you time. disconnect may you Thank your concludes and today's Thank this at this

Inter Parfums (IPAR) 26 Feb 252024 Q4 Earnings call transcript