INTERPARFUMS INC Segments Disclosure
| (14) | Segments and Geographic Areas |
Operating and reportable segments ("segments") reflect the way the Company is managed and for which separate financial information is available and evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. The Company's CODM is the founders of Interparfums, Inc. which includes the Chief Executive Officer and Chairman of the Board of Directors of Interparfums, Inc. and the President of Interparfums, Inc. and Chief Executive Officer of Interparfums SA. 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 based operations, assets and business operations are primarily conducted in France, and include the results and assets of Interparfums Luxury Brands, Inc., located in the United States. For United States based operations, assets and business operations are primarily conducted in the United States, and include the results and assets of Interparfums Italia Srl, located in Italy. Both European based operations and United States based operations primarily represent the sale of prestige brand name fragrances.
The accounting policies for the Company's reportable segments are the same as those described in the summary of significant accounting policies. The Company evaluates the performance of its segments and allocates resources based on gross margin and income from operations. Segment gross margin and segment income from operations include intersegment revenues and expenses. For both segments, the CODM used these measures in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for both profit measures when making decisions about allocating capital and personnel to the segments and in determining the compensation of employees. The CODM also uses segment gross margin for evaluating product pricing, customer and product mix, cost optimization, and marketing strategies and used segment income from operations to assess the performance and relative profitability of each segment by comparing the results of each segment with one another.
Information on the Company’s operations by segments is as follows:
| Year ended December 31, 2025 | ||||||||||||
|
United States based operations |
European based operations |
Total | ||||||||||
| Net sales | $ | 482,416 | $ | 1,016,303 | $ | 1,498,719 | ||||||
| Eliminations (a) | — | (10,210 | ) | (10,210 | ) | |||||||
| 482,416 | 1,006,093 | 1,488,509 | ||||||||||
| Less: (b) | ||||||||||||
| Cost of sales | 200,927 | 344,470 | ||||||||||
| Eliminations (a) | — | (4,107 | ) | |||||||||
| Segment gross margin | 281,489 | 665,730 | 947,219 | |||||||||
| Less: (b) | ||||||||||||
| Advertising and Promotion | 75,393 | 219,261 | ||||||||||
| Employee related costs | 51,642 | 77,328 | ||||||||||
| Royalties | 36,007 | 85,732 | ||||||||||
| Other segment items (c) | 39,497 | 92,042 | ||||||||||
| Segment income from operations | $ | 78,950 | $ | 191,367 | $ | 270,317 | ||||||
| Reconciliation: |
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| Interest expense |
7,248 | |||||||||||
| Loss on foreign currency | 4,779 | |||||||||||
| Interest and investment income | (3,877 | ) | ||||||||||
| Other income | (9,165 | ) | ||||||||||
| Income before income taxes | $ | 271,332 | ||||||||||
| Year ended December 31, 2024 | ||||||||||||
|
United States based operations |
European based operations |
Total | ||||||||||
| Net sales | $ | 511,307 | $ | 953,046 | $ | 1,464,353 | ||||||
| Eliminations (a) | — | (12,028 | ) | (12,028 | ) | |||||||
| 511,307 | 941,018 | 1,452,325 | ||||||||||
| Less: (b) | ||||||||||||
| Cost of sales | 215,207 | 314,465 | ||||||||||
| Eliminations (a) | — | (4,688 | ) | |||||||||
| Segment gross margin | 296,100 | 631,241 | 927,341 | |||||||||
| Less: (b) | ||||||||||||
| Advertising and Promotion | 79,479 | $ | 201,065 | |||||||||
| Employee related costs | 51,318 | 74,071 | ||||||||||
| Royalties | 37,081 | 80,711 | ||||||||||
| Other segment items (c) | 39,048 | 89,772 | ||||||||||
| Segment income from operations | $ | 89,174 | $ | 185,622 | $ | 274,796 | ||||||
| Reconciliation: |
||||||||||||
| Interest expense |
7,825 | |||||||||||
| Loss on foreign currency | 1,085 | |||||||||||
| Interest and investment income | (2,218 | ) | ||||||||||
| Other income | (287 | ) | ||||||||||
| Income before income taxes | $ | 268,391 | ||||||||||
| Year ended December 31, 2023 | ||||||||||||
|
United States based operations |
European based operations |
Total | ||||||||||
| Net sales | $ | 455,758 | $ | 863,397 | $ | 1,319,155 | ||||||
| Eliminations (a) | — | (1,480 | ) | (1,480 | ) | |||||||
| 455,758 | 861,917 | 1,317,675 | ||||||||||
| Less: (b) | ||||||||||||
| Cost of sales | 195,973 | 282,624 | ||||||||||
| Segment gross margin | 259,785 | 579,293 | 839,078 | |||||||||
| Less: (b) | ||||||||||||
| Advertising and Promotion | 70,033 | 191,253 | ||||||||||
| Employee related costs | 45,880 | 70,473 | ||||||||||
| Royalties | 32,573 | 71,214 | ||||||||||
| Other segment items (c) | 32,622 | 73,648 | ||||||||||
| Segment income from operations | $ | 78,677 | $ | 172,705 | $ | 251,382 | ||||||
| Reconciliation: |
||||||||||||
| Interest expense |
11,253 | |||||||||||
| Loss on foreign currency | 1,582 | |||||||||||
| Interest and investment income | (10,729 | ) | ||||||||||
| Other income | (317 | ) | ||||||||||
| Income before income taxes | $ | 249,593 | ||||||||||
| (a) | Eliminations of intercompany sales relate to European based operations products sold to United States based operations. |
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| (b) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. |
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| (c) | Other segment items for each reportable segment include expenses for professional services, travel & entertainment, rent, warehousing, shipping, depreciation & amortization, and other selling, general and administrative costs. |
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Other segment disclosures:
| Year ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net income attributable to Interparfums, Inc.: | ||||||||||||
| United States | $ | 68,842 | $ | 68,164 | $ | 63,354 | ||||||
| Europe | 104,122 | 101,698 | 89,677 | |||||||||
| Eliminations | (4,577 | ) | (5,504 | ) | (377 | ) | ||||||
| $ | 168,387 | $ | 164,358 | $ | 152,654 | |||||||
| Depreciation and amortization expense including impairment loss: | ||||||||||||
| United States | $ | 6,806 | $ | 6,838 | $ | 6,517 | ||||||
| Europe | 18,496 | 21,520 | 10,814 | |||||||||
| $ | 25,302 | $ | 28,358 | $ | 17,331 | |||||||
| Interest and investment income: | ||||||||||||
| United States | $ | 2,175 | $ | 514 | $ | 346 | ||||||
| Europe | 1,702 | 2,392 | 10,810 | |||||||||
| Eliminations | — | (688 | ) | (427 | ) | |||||||
| $ | 3,877 | $ | 2,218 | $ | 10,729 | |||||||
| Interest expense: | ||||||||||||
| United States | $ | 1,258 | $ | 1,838 | $ | 1,351 | ||||||
| Europe | 5,990 | 6,675 | 10,329 | |||||||||
| Eliminations | — | (688 | ) | (427 | ) | |||||||
| $ | 7,248 | $ | 7,825 | $ | 11,253 | |||||||
| Income tax expense: | ||||||||||||
| United States | $ | 17,232 | $ | 17,805 | $ | 15,180 | ||||||
| Europe | 45,891 | 48,988 | 46,763 | |||||||||
| Eliminations | 64 | (1,835 | ) | (126 | ) | |||||||
| $ | 63,187 | $ | 64,958 | $ | 61,817 | |||||||
| December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Total assets: | ||||||||||||
| United States | $ | 369,871 | $ | 352,139 | $ | 344,341 | ||||||
| Europe | 1,229,174 | 1,073,326 | 1,066,684 | |||||||||
| Eliminations | (13,797 | ) | (14,204 | ) | (41,696 | ) | ||||||
| $ | 1,585,248 | $ | 1,411,261 | $ | 1,369,329 | |||||||
| Additions to long-lived assets(a): | ||||||||||||
| United States | $ | 1,020 | $ | 1,882 | $ | 3,918 | ||||||
| Europe | 47,180 | 20,470 | 49,450 | |||||||||
| $ | 48,200 | $ | 22,352 | $ | 53,368 | |||||||
| Total long-lived assets(a): | ||||||||||||
| United States | $ | 43,885 | $ | 50,401 | $ | 57,372 | ||||||
| Europe | 489,537 | 410,459 | 436,819 | |||||||||
| $ | 533,422 | $ | 460,860 | $ | 494,191 | |||||||
(a) Total long-lived assets include property, equipment and leasehold improvements, trademarks, licenses, and other intangible assets, and right-of-use assets.
United States export sales were approximately $200.3 million, $218.5 million and $230.5 million in 2025, 2024 and 2023, respectively. Consolidated net sales to customers by region are as follows:
| Year ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| North America | $ | 556,712 | $ | 541,850 | $ | 511,655 | ||||||
| Western Europe | 383,196 | 364,308 | 301,228 | |||||||||
| Asia/Pacific | 188,995 | 196,978 | 191,772 | |||||||||
| Eastern Europe | 121,064 | 118,130 | 103,227 | |||||||||
| Middle East and Africa | 117,934 | 122,844 | 117,115 | |||||||||
| Central and South America | 120,608 | 108,215 | 92,678 | |||||||||
| $ | 1,488,509 | $ | 1,452,325 | $ | 1,317,675 | |||||||
For net sales, a major country is defined as a group of customers in a country with combined net sales of greater than 10% of consolidated net sales or as otherwise deemed significant. Net sales in the United States were approximately $532.4 million, $522.1 million, and $493.2 million in 2025, 2024 and 2023, respectively. Net sales in France were approximately $72.9 million, $65.4 million, and $51.0 million in 2025, 2024 and 2023, respectively. No other country represented greater than 10% of the Company's consolidated net sales or was otherwise deemed significant.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 13, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 14, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.