Interparfums, Inc. reported record results for the fourth quarter and full year ended December 31, 2024. The company achieved diluted earnings per share (EPS) of $5.12, or $5.18 before a previously communicated non-recurring, non-cash impairment loss of $4 million for Rochas Fashion, surpassing its guidance of $5.15.
Consolidated gross margin for the year expanded by 20 basis points to 63.9% from 63.7% in 2023. Operating income before impairment loss increased 11% to $279 million, resulting in an operating profit margin of 19.2%, up slightly from 19.1% in 2023. The company ended the year with a strong financial position, including $235 million in cash, cash equivalents, and short-term investments, and significantly improved operating cash flow, which was equivalent to 92% of net income, up from 56% in 2023.
The Board of Directors approved a 7% increase in the annual cash dividend rate to $3.20 per share, up from $3.00 per share, reflecting confidence in the company's financial strength and ability to achieve long-term growth. The next quarterly cash dividend of $0.80 per share is payable on March 28, 2025.
Interparfums reaffirmed its 2025 guidance, projecting net sales of $1.51 billion and diluted EPS of $5.35, both representing a 4% increase. This guidance assumes that the average dollar/euro exchange rate remains at current levels.
The company announced plans to launch its first proprietary niche brand, Solférino, in the summer of 2025, with an ultra-selective distribution strategy including its own boutique in Paris later in the year. This initiative aims to tap into the high-end fragrance market and gain insights applicable across its portfolio.
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