8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 Date of Report (Date of Earliest Event Reported):
March 1, 2021

Inter Parfums, Inc.
(Exact name of Registrant as specified in its charter)

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

551 Fifth Avenue, New York, New York 10176
(Address of Principal Executive Offices)

212. 983.2640
(Registrant’s Telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 280.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 280.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 280.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§280.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

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

Item 2.02 Results of Operations and Financial Condition

Certain portions of our press release dated March 1, 2021, a copy of which is annexed hereto as Exhibit no. 99.1, are incorporated by reference herein, and are filed pursuant to this Item 2.02. They are as follows:

● The 1^st through 5^th paragraphs and 7^th and 8^th paragraphs relating to results of operations for 2020, and the 9^th paragraph relating to balance sheet information

● The 14^th paragraph relating to the conference call to be held on March 2, 2021

● The tables of unaudited consolidated statements of income and consolidated balance sheets

Item 7.01 Regulation FD Disclosure

Certain portions of our press release dated March 1, 2021, a copy of which is annexed hereto as Exhibit no. 99.1, are incorporated by reference herein, and are filed pursuant to this Item 7.01 and Regulation FD. They are as follows:

● The 6^th paragraph relating to Moncler and Divabox and its Origines-parfums e-commerce platform

● The 10^th and 11^th paragraphs relating to 2021 new products

● The 13^th paragraph relating to 2021 guidance

● The 16^th paragraph relating to forward looking statements

● The balance of such press release not otherwise incorporated by reference in Items 2.02 or 8.01

Item 8.01 Other Matters

The 12^th paragraph of our press release dated March 1, 2021 relating to our cash dividend is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

99.1 Our press release dated March 1, 2021

1

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused and authorized this report to be signed on its behalf by the undersigned.

Dated: March 1, 2021

Inter Parfums, Inc.
By:	/s/ Russell Greenberg
	Russell Greenberg,
	Executive Vice President and Chief Financial Officer

2

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

INTER PARFUMS, INC. REPORTS 2020 FOURTH QUARTER AND YEAR END RESULTS

INCREASES 2021 GUIDANCE AND REINSTATES QUARTERLY CASH DIVIDEND

New York, New York, March 1, 2021: Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the fourth quarter and year ended December 31, 2020. Of note, the average dollar/euro exchange rate for the 2020 fourth quarter was 1.19 compared to 1.11 in the fourth quarter of 2019. For the full years ended December 31, 2020 and 2019, the average dollar/euro exchange rates were 1.15 and 1.12, respectively.

Fourth Quarter 2020 Compared to Fourth Quarter 2019:

● Net sales were $184.0 million, up 3.5% compared to $177.8 million; at comparable foreign currency exchange rates, consolidated fourth quarter net sales were practically unchanged from those of 2019;

● Net sales by European based operations rose 8.1% to $139.6 million from $129.1 million;

● Net sales by U.S. based operations declined 8.8% to $44.4 million from $48.7 million;

● Gross margin was 63.9% compared to 64.5%;

● S,G&A expenses as a percentage of net sales were 49.5% compared to 57.6%;

● Operating income rose 115% to $26.5 million compared to $12.3 million;

● Operating margin was 14.4% compared to 6.9%;

● The effective income tax rate was 28.8% compared to 25.7%;

● Net income attributable to Inter Parfums, Inc. rose 80.0% to $14.7 million from $8.2 million; and,

● Net income attributable to Inter Parfums, Inc. per diluted share was $0.47 compared to $0.26.

Thus for the year as a whole, net sales declined 24.5% to $539.0 million from $713.5 million in 2019. At comparable foreign currency exchange rates, net sales declined 25.6%. Net income attributable to Inter Parfums, Inc. declined 36.6% to $38.2 million from 2019’s $60.2 million; and net income attributable to Inter Parfums, Inc. per diluted share declined to $1.21 from $1.90 per diluted share in 2019.

Jean Madar, Chairman & CEO of Inter Parfums stated, “As we’ve reported in January, we ended the year with a surprisingly strong fourth quarter, in fact our best ever fourth quarter ever in terms of sales. Our largest European brands Montblanc, Jimmy Choo, and Coach achieved comparable quarter sales growth of 9.8%, 13.4%, and 18.0%, respectively, all the more gratifying in that no new products were launched in that period. We are also very pleased by the preliminary sales of Anna Sui Sky, which began to rollout in the final quarter of 2020, contributing to that brand’s 62.3% increase in fourth quarter sales.”

He continued, “Throughout the past year, the COVID-19 pandemic and its repercussions broadly and negatively impacted sales in all regions, with the steepest year-over-year sales declines in two of our smaller markets, the Middle East and Eastern Europe, down 35.5% and 40.0%, respectively. Our two largest markets, North America and Western Europe, had far more modest sales declines of 17.8% and 20.7%, respectively. Much of the 28.2% sales decline in Asia was attributable to the dramatic reduction in air travel, and corresponding impact on the travel retail business.”

Inter Parfums, Inc. News Release	Page 2
March 1, 2021

Discussing new initiatives undertaken in 2020, Mr. Madar pointed to the signing of a license with the luxury brand Moncler. The first new fragrance under the Moncler brand is scheduled for the first quarter 2022 launch. “In addition,” he said, “we acquired 25% of Divabox SAS, owner of the Origines-parfums e-commerce platform for beauty products, which should enhance the introduction of dedicated fragrance lines and products designed to address a specific consumer demand for this distribution channel and accelerate our Company’s digital development.”

Russell Greenberg, Executive Vice President and CFO stated, “Our consolidated 2020 gross margin was 61.4% compared to 62.5% in 2019. Gross margin for European operations was 64.0% compared to 65.7% in 2019. Two factors contributing to the 111-basis point decline was the weaker dollar in 2020 and the approximately $2 million charge relating to the assumption of a return liability for products sold by the former licensee of a license we entered into in 2019. For U.S. operations where the decline in sales was far more acute than at our European operations, the gross margin declined to 51.8% from 52.5% in 2019, as certain expenses such as depreciation of tools and molds together with the distribution of point-of-sale materials amplified the decline in gross margin.”

He continued, “Selling, general and administrative expenses declined 23.6% compared to 2019, and as a percentage of net sales, were 48.4% and 47.8% for 2020 and 2019, respectively. Due to the effects of the COVID-19 pandemic, a substantial portion of the reduction in selling, general and administrative expenses in 2020 was attributable to the postponement of most new product launches until 2021. In 2020, advertising and promotional expenses represented 17.0% of net sales as compared to 20.3% in 2019.”

Mr. Greenberg also noted, “Cash provided by operating activities aggregated $65.0 million and $76.5 million in 2020 and 2019, respectively. We closed the year with working capital of $445 million, including approximately $296 million in cash, cash equivalents and short-term investments, a working capital ratio of over 3.8 to 1, and only $10.1 million of long-term debt.”

2021 New Product Highlights

Mr. Madar continued, “For our European operations, we recently debuted Kate Spade New York, our first new fragrance for the brand. In the U.S., the scent is already being carried by major department stores, beauty retailers and is being sold through e-commerce. The fragrance is also debuting soon in Europe, which will be followed by Asia, the Middle East and Latin America in the second quarter. With regard to our larger brands, in the first half of the year, Montblanc is adding an extension to its Explorer collection for men. For the Jimmy Choo fragrance portfolio, I Want Choo for women and an Urban Hero flanker fragrance for men will begin to rollout in the first half. In the second half, we’ve got an extension for Coach Dreams and an entirely new women’s line for Lanvin is unveiling.”

Highlighting major launches in the pipeline within U.S. operations Mr. Madar noted, “For our newest brand, MCM, we have a genderless namesake fragrance debuting in MCM stores in the spring which will be followed by a broader international rollout. The Bella Vita women’s collection debuts in GUESS stores, as well as stores in the brand’s major markets, Russia and Asia in the spring of this year, with retail distribution in the rest of the world coming in spring 2022. The brand is also launching Effect, a complete men’s fragrance and grooming collection beginning mid-year. Anna Sui Sky actually debuted in China and Hong Kong late last year and is now rolling out throughout Asia and other markets where the brand has strong traction. Oscar de la Renta boutiques will be first to carry a new women’s scent, Alibi, later this month, to be followed by a global rollout. For Abercrombie& Fitch, we have a completely new duo scheduled to be on store shelves this summer, and for Hollister, we have a fragrance duo launching this year.”

Inter Parfums, Inc. News Release	Page 3
March 1, 2021

Dividend Reinstated at Annual Rate of $1.00 per Share

Mr. Greenberg pointed out, “In 2020, effective cost controls and cash management enabled us to minimize the impact of the sudden drop in sales resulting from the COVID-19 pandemic. One defensive measure undertaken by our Board of Directors was the suspension of the cash dividend. The strength of our financial position coupled with the favorable near and longer-term outlook of our business were among the reasons why our Board reinstated the payment of a cash dividend, payable quarterly, at the annual rate of $1.00 per share. The next regular quarterly cash dividend of $0.25 per share is payable on March 31, 2021 to shareholders of record on March 15, 2021.”

Raises 2021 Guidance

Mr. Greenberg concluded, “In the three months since we provided initial 2021 guidance, we’ve gained greater visibility as to how the year will unfold, thanks to an influx of orders for established brands, the addition of Kate Spade New York and MCM brand sales, and in general, favorable indications from our distribution network. We now have a reasonable degree of confidence that net sales will fall within the $650 million and $660 million range, once again factoring in negligible travel retail sales. Fixed expenses will increase slightly as we unwind certain steps taken in 2020 to minimize the effects of the COVID-19 pandemic. In addition, with many 2021 product launches scheduled, we are again targeting 21% of net sales for advertising and promotion included in selling, general and administrative expenses. We currently estimate 2021 diluted net income per share to be in the range of $1.40 and $1.45. Guidance assumes that the average dollar/euro average exchange rate remains at current levels and that there is no significant resurgence of the COVID-19 pandemic.

Conference Call

Management will conduct a conference call to discuss financial results and business developments at 11:00 AM ET, Tuesday, March 2, 2021. Interested parties may participate by dialing (201) 493-6749; please call in 10 minutes before start time and ask for the Inter Parfums call. To listen to the call over the Internet, go to www.interparfumsinc.com and click on the Investor Relations section.

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, 2020 and the 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.

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

See Accompanying Tables

Inter Parfums, Inc. News Release	Page 4
March 1, 2021

INTER PARFUMS, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(In thousands except per share data)

(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2020			2019			2020			2019
Net sales	$	184,042		$	177,803		$	539,009		$	713,514
Cost of sales		66,395			63,119			208,278			267,578
Gross margin		117,647			114,684			330,731			445,936
Selling, general and administrative expenses		91,177			102,349			260,648			341,209
Income from operations		26,470			12,335			70,083			104,727
Other expenses (income):
Interest expense		460			932			1,970			2,146
Loss on foreign currency		2,254			310			2,178			1,128
Interest income		(711	)		(807	)		(2,865	)		(3,693	)
Other income		(549	)		--			(549	)		--
		1,454			435			734			(419	)
Income before income taxes		25,016			11,900			69,349			105,146
Income taxes		7,216			3,066			19,381			29,076
Net income		17,800			8,834			49,968			76,070
Less:  Net income attributable to the noncontrolling interest		3,061			645			11,749			15,821
Net income attributable to Inter Parfums, Inc.	$	14,739		$	8,189			38,219		$	60,249
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic	$	0.47		$	0.26		$	1.21		$	1.92
Diluted	$	0.47		$	0.26		$	1.21		$	1.90
Weighted average number of shares outstanding:
Basic		31,552			31,473			31,537			31,451
Diluted		31,666			31,713			31,655			31,689
Dividends declared per share	$	0.00		$	0.33		$	0.33		$	1.16

Inter Parfums, Inc. News Release	Page 5
March 1, 2021

INTER PARFUMS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2020 and 2019

(In thousands except share and per share data)

	2020			2019
Assets
Current assets:
Cash and cash equivalents	$	169,681		$	133,417
Short-term investments		126,627			119,714
Accounts receivable, net		124,057			133,010
Inventories		158,822			167,809
Receivables, other		1,815			2,054
Other current assets		16,912			17,123
Income taxes receivable		2,806			169
Total current assets		600,720			573,296
Equipment and leasehold improvements, net		19,580			11,107
Right-of-use assets, net		24,734			28,359
Trademarks, licenses and other intangible assets, net		214,108			201,983
Deferred tax assets		8,041			8,004
Other assets		22,962			6,083
Total assets	$	890,145		$	828,832
Liabilities and Equity
Current liabilities:
Current portion of long-term debt	$	14,570		$	12,326
Current portion of lease liabilities		5,133			5,356
Accounts payable - trade		35,576			54,098
Accrued expenses		95,629			96,421
Income taxes payable		5,297			5,865
Dividends payable		--			10,399
Total current liabilities		156,205			184,465
Long–term debt, less current portion		10,136			10,734
Lease liabilities, less current portion		21,354			24,635
Equity:
Inter Parfums, Inc. shareholders’ equity:
Preferred stock, $0.001 par value. Authorized 1,000,000 shares; none issued		--			--
Common stock, $0.001 par value. Authorized 100,000,000 shares; outstanding, 31,608,588 and 31,513,018 shares  at December 31, 2020 and 2019, respectively		32			31
Additional paid-in capital		75,708			70,664
Retained earnings		503,567			474,637
Accumulated other comprehensive loss		(5,997	)		(39,853	)
Treasury stock, at cost, 9,864,805 common shares  at December 31, 2020 and 2019		(37,475	)		(37,475	)
Total Inter Parfums, Inc. shareholders’ equity		535,835			468,004
Noncontrolling interest		166,615			140,994
Total equity		702,450			608,998
Total liabilities and equity	$	890,145		$	828,832

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Cover	Mar. 01, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 01, 2021
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