New York, New York, August 10, 2020: Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the second quarter ended June 30, 2020. The average dollar/euro exchange rate for the current second quarter was 1.10 compared to 1.12 in the second quarter of 2019.

Thus for the first half of 2020, net sales declined 43.6% to $194.3 million from $344.5 million for the corresponding period of the prior year. At comparable foreign currency exchange rates, net sales declined 43.0%. Net income attributable to Inter Parfums, Inc. declined 77.8% to $6.9 million from $31.2 million, while net income attributable to Inter Parfums, Inc. per diluted share decreased 77.8% to $0.22 from $0.99. For the six months ended June 30, 2020 and 2019, the average U.S. dollar/euro exchange rate was 1.10 and 1.13, respectively.

Jean Madar, Chairman & CEO of Inter Parfums, Inc. noted, “Business has picked up since the April lows, but not near normalized levels. In recent months, sales and new orders have been moving in a positive direction, especially from Europe and Asia. While we are hopeful that this will continue, we recognize that the road ahead will be uneven, with starts and stops along the way.”

He continued, “With regard to the first half of the year, our net sales in North America, Western Europe, Asia, Middle East and Eastern Europe were down 38.9%, 34.0%, 53.8%, 57.4% and 56.2%, respectively. Of note, travel retail accounted for much of the decline in the Asian markets. In the first half, our two largest brands, Montblanc and Jimmy Choo, experienced sales declines of 50.8% and 43.6%, respectively, with the COVID-19 impact amplified by the 2019 first half launches of major programs for both of these brands. Our next two largest brands, Coach and GUESS brands had more modest year-to-date sales declines of 21.3% and 21.0%, following 2020 first quarter sales gains of 35.9% and 28.9%, respectively.”

Mr. Madar went on to say, “We have been moving forward on a number of new fronts, and in recent months we inked two agreements, our license with Moncler and our equity stake in origines-parfums.fr. Moncler is a global brand best known for luxurious outerwear, which merges fashion with high performance. It been implementing a selective brand extension strategy which currently includes eyewear, watches, sportswear and footwear, making this brand more widely known and accessible to a wider audience. Our plan is to launch our first collection under the Moncler name in the first quarter of 2022. Thanks to our recently acquired equity stake in origines-parfums.fr, we are learning and benefiting from a successful online beauty business, with their product lines covering skin care, hair care, make-up and fragrance serving a loyal clientele throughout Europe. This collaboration is expected to create an opportunity to introduce dedicated fragrance lines and products targeting specific consumer demand in this distribution channel and accelerating our digital presence.”

Mr. Madar concluded, “We are looking beyond the current health and economic crisis to rebuilding our business and sales with our legacy scents and our rich pipeline of new product introductions scheduled for 2021 and beyond. Our first ever fragrances for the MCM and Kate Spade New York brands, along with major programs for two of our largest brands, Jimmy Choo and GUESS, are among our 2021 launches now in the works.”

Russell Greenberg, Executive Vice President and CFO of Inter Parfums, Inc., stated, “For European operations, gross margin was 57% for current second quarter as compared to 68% for the corresponding period of the prior year. The decline in the current period primarily relates to product mix plus a charge of approximately $2.0 million relating to the assumption of a return liability for products sold by the former licensee of a brand licensed in 2019. For U.S. operations, gross margin was 43% for the current second quarter as compared to 52% for the same period of 2019. As a consequence of the 75.2% decline in net sales by U.S. operations, certain expenses such as depreciation of tools and molds together with the distribution of point of sale materials, amplified the gross margin decline.”

Mr. Greenberg continued, “By late winter we took decisive action to adjust S, G & A expenses for the drop in sales and in the current second quarter, we cut S, G & A expenses by 62% from the second quarter 2019. For European operations where comparable quarter sales decreased nearly 70%, S, G & A expenses decreased 66% and our European operations actually achieved a modest profit for the second quarter. For U.S. operations, S, G & A expenses decreased 44% on a 75% sales decline. Our U.S. operations are significantly smaller than those of our European operations and carry higher fixed costs that could not be leveraged as efficiently as those of our European operations. Promotion and advertising represented 12% of net sales for the current second quarter, as compared to 22% in the second quarter of 2019. Most of our licensors temporarily waived or reduced minimum royalty guarantees during the current health and economic crisis.”

Mr. Greenberg made some final points, “We closed the quarter with working capital of $386 million, including approximately $195 million in cash, cash equivalents and short-term investments, a working capital ratio of 4.8 to 1, untapped credit facilities of $48 million and only $18.9 million of long-term debt which includes borrowings made in connection with our equity stake in the parent company of origines-parfums.fr.”

Management will conduct a conference call to discuss financial results and business developments at 11:00 AM ET on Tuesday, August 11, 2020. Interested parties may participate in the call by dialing (201) 493-6749; please call in 10 minutes before the conference call is scheduled to begin and ask for the Inter Parfums call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.interparfumsinc.com and click on the Investor Relations section. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Inter Parfums’ website.

Founded in 1982, Inter Parfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Dunhill, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade New York, MCM, Moncler, Montblanc, Oscar de la Renta, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. Inter Parfums is also the owner of Lanvin fragrances and the Rochas brand. Through its global distribution network, the Company’s products are sold in over 120 countries.

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases you can identify forward-looking statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would," or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in Inter Parfums' annual report on Form 10-K for the fiscal year ended December 31, 2019, the Quarterly Report on Form 10-Q filed for the second quarter of 2020 and the additional reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.

Delaware		0-16469		13-3275609
(State or other jurisdiction of incorporation or organization)		Commission File Number		(I.R.S. Employer Identification No.)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $.001 par value per share		IPAR		The Nasdaq Stock Market

	●	Portions of the 4^th paragraph relating results of operations for the second quarter of 2020

	●	The 6^th paragraph relating to recent agreements for Moncler and Origines

	Inter Parfums, Inc.

	By:	/s/ Russell Greenberg
		Russell Greenberg,
		Executive Vice President and
		Chief Financial Officer

●	Net sales were $49.5 million, down 70.2% compared to $166.2 million, at comparable foreign currency exchange rates, net sales declined 69.8%;
●	Net sales by European based operations declined 68.6% to $39.4 million from $125.6 million;
●	Net sales by U.S. based operations declined 75.2% to $10.1 million from $40.6 million;
●	Gross margin was 54.2% compared to 64.4%;
●	S,G&A expenses as a percentage of net sales were 65.4% compared to 50.8%;
●	The operating loss was $5.5 million compared to operating income of $22.5 million;
●	Operating margin dropped to 11.2% compared to 13.5%;
●	There was an income tax benefit of $2.1 million, as compared to the prior year period, where the effective income tax rate was 29.5%; and,
●	Net loss attributable to Inter Parfums, Inc. was $3.1 million or $0.10 per diluted share compared to net income attributable to Inter Parfums of $12.3 million or $0.39 per diluted share.

Contact at Inter Parfums, Inc.	-or-	Investor Relations Counsel
Russell Greenberg, Exec. VP & CFO		The Equity Group Inc.
(212) 983-2640		Fred Buonocore (212) 836-9607/fbuonocore@equityny.com
rgreenberg@interparfumsinc.com		Linda Latman (212) 836-9609/llatman@equityny.com
www.interparfumsinc.com		www.theequitygroup.com

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019

Net sales	$	49,506		$	166,242		$	194,330		$	344,484

Cost of sales		22,662			59,268			78,444			127,669

Gross margin		26,844			106,974			115,886			216,815

Selling, general and administrative expenses		32,367			84,514			103,630			161,067

Income (loss) from operations		(5,523	)		22,460			12,256			55,748

Other expenses (income):
Interest expense		361			203			1,362			830
(Gain) loss on foreign currency		(13	)		546			(967	)		697
Interest income		(754	)		(419	)		(1,761	)		(2,325	)

		(406	)		330			(1,366	)		(798	)

Income (loss) before income taxes		(5,117	)		22,130			13,622			56,546

Income taxes (benefit)		(2,134	)		6,530			3,306			15,969

Net income (loss)		(2,983	)		15,600			10,316			40,577

Less: Net income attributable to the noncontrolling interest		135			3,282			3,375			9,366

Net income (loss) attributable to Inter Parfums, Inc.	$	(3,118	)	$	12,318		$	6,941		$	31,211

Earnings (loss) per share:

Net income (loss) attributable to Inter Parfums, Inc. common shareholders:
Basic	($	0.10	)	$	0.39		$	0.22		$	0.99
Diluted	($	0.10	)	$	0.39		$	0.22		$	0.99

Weighted average number of shares outstanding:
Basic		31,532			31,449			31,531			31,440
Diluted		31,532			31,687			31,667			31,683

Dividends declared per share		--		$	0.28		$	0.33		$	0.55

	June 30, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	127,463		$	192,417
Short-term investments		67,505			60,714
Accounts receivable, net		77,399			133,010
Inventories		194,831			167,809
Receivables, other		919			2,054
Other current assets		18,254			17,123
Income taxes receivable		1,231			169
Total current assets		487,602			573,296
Equipment and leasehold improvements, net		10,742			11,107
Right-of-use assets, net		26,284			28,359
Trademarks, licenses and other intangible assets, net		199,680			201,983
Deferred tax assets		8,672			8,004
Other assets		20,739			6,083
Total assets	$	753,719		$	828,832

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	5,551		$	12,326
Current portion of lease liabilities		4,894			5,356
Accounts payable – trade		33,904			54,098
Accrued expenses		51,789			96,421
Income taxes payable		5,836			5,865
Dividends payable		--			10,399
Total current liabilities		101,974			184,465
Long–term debt, less current portion		18,858			10,734
Lease liabilities, less current portion		23,057			24,635

Equity:
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 31,532,558 and 31,513,018 shares at June 30, 2020 and December 31, 2019, respectively		32			31
Additional paid-in capital		72,535			70,664
Retained earnings		471,462			474,637
Accumulated other comprehensive loss		(40,566	)		(39,853	)
Treasury stock, at cost, 9,864,805 shares at June 30, 2020 and December 31, 2019		(37,475	)		(37,475	)
Total Inter Parfums, Inc. shareholders’ equity		465,988			468,004
Noncontrolling interest		143,842			140,994
Total equity		609,830			608,998
Total liabilities and equity	$	753,719		$	828,832

Cover	Aug. 10, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 10, 2020
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
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $.001 par value per share
Trading Symbol	IPAR
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false