Interparfums posted first-quarter results significantly below expectations, hampered by a stronger euro and a demanding prior-year comparison, weighing on the group's share price on the Paris Bourse this Wednesday morning.
The licensed fragrance creator reported an 8.5% decline in revenue to 215.5 million euros, falling short of analyst consensus estimates of 225 million euros.
On a constant currency basis, the owner of the Jimmy Choo, Coach, Montblanc, and Lacoste fragrance brands saw a more moderate year-on-year activity decline of 2.6%.
In a press release, Chairman and CEO Philippe Benacin described the performance as "decent" given the particularly degraded geopolitical and economic environment.
Middle East and Europe weigh on activity
"Despite this particularly unfavorable context, Interparfums has achieved a satisfactory start to 2026," he noted.
The group reported stable performance in North America, its primary market, but saw sales drop by 19% in Western Europe, its second-largest outlet.
Activity was primarily penalized by a collapse in sales in the Middle East (-40%) due to the ongoing conflict involving Iran.
Among franchises, the strongest performances came from Coach, where sales rose 17%, followed by Montblanc (+2%), while all other major brands (Jimmy Choo, Lacoste, Rochas, and Lanvin) saw declines.
Analysts remain cautious
In a research note, analysts at AllInvest pointed to a "complicated start to the year," confirming their view that 2026 will be a "transition year."
Oddo BHF, which maintains a Neutral rating on the stock with a price target of 27 euros, reminded investors that momentum is expected to improve in 2027 with numerous product launches, and that the calendar should become more favorable starting in September.
"While momentum will improve later in the year, the stock has already priced in this profile," the brokerage firm stated.
On the stock market, the share price, down 22% over 12 months, lost more than 2% to trade below 23.9 euros this Wednesday in Paris.
At this price level, Interparfums' market capitalization stands at nearly two billion euros, with a P/E ratio of 20.4x estimated 2026 earnings. This valuation is close to that of LVMH (21.6x) but now far below Hermes (37.4x), which remains the most richly valued stock in the luxury sector.
Interparfums specializes in the design, manufacturing and marketing of luxury fragrances. The group's activity is organized primarily around 2 product families:
- fragrance: Jimmy Choo, Montblanc, Coach, Lacoste, Lanvin, Rochas, Karl Lagerfeld, Van Cleef & Arpels, Kate Spade, Boucheron, and Moncler brands;
- women's and men's fashion items: Rochas brand.
Products were being marketed through perfume shops, franchise chains and department stores in France, and through import companies, airports, and airlines abroad.
Net sales are distributed geographically as follows: France (6.4%), Eastern Europe (8.8%), Western Europe (18.1%), North America (38.6%), Asia (12.8%), South America (8.8%), the Middle East (5.8%) and Africa (0.7%).
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