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table of contents
letter to our shareholders 0202
letter to our shareholders
the company 0606
the company
the products 1212
the products
the organization 5858
the organization
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 2
2021
Letter to our
Shareholders
DEAR FELLOW SHAREHOLDERS,
What a difference a year makes! 2021, the year following the
onset of the COVID-19 pandemic, was the best year in our 33
years as a public company.
2021 FINANCIAL HIGHLIGHTS
Over the course of the year, our sales exceeded expectations in
each and every quarter leading to record net sales of $879 mil-
lion, up 63% from 2020 and 23% from 2019. While we were de-
lighted by the upside surprise in orders throughout the year, we
were even more delighted that we were sufficiently prepared to
produce and ship the goods, despite the continuation of the COVID
pandemic and the supply chain disruptions that have ensued.
In 2021, sales by our four largest brands and many of our
mid-sized brands exceeded those of 2019. GUESS joined Mont-
blanc, Jimmy Choo and Coach in topping $100 million in annual
sales. Further, we gained market share in 2021. According to in-
dustry sources, the fragrance industry grew 20% in 2021, while
our growth exceeded 63%.
The financial pages that follow contain a detailed overview of
the inputs that culminated in an operating margin of 17%, and
net income attributable to Inter Parfums, Inc. of $87 million.
Several key factors are worth mentioning. Our gross margin
benefitted from the substantial increase in sales by our U.S.
distribution subsidiary. In addition, advertising and promotion
expenses as a percent of sales came in lower than the 21% we
historically budget, because of the upside sales surprises that
we experienced throughout the year.
We closed the year with working capital of $465 million, in-
cluding approximately $320 million in cash, cash equivalents and
short-term investments, and a working capital ratio of 2.9 to 1.
Our balance sheet included $133 million of long-term debt which
relates to the headquarters acquisition by our Paris subsidiary,
Interparfums SA. Cash provided by operating activities aggregat-
ed $120 million for 2021. Productivity, measured in sales per em-
ployee, came in at $1.9 million based on 467 in staff.
Finally, our Board of Directors approved a 100% increase in
our annual cash dividend to $2.00 per share payable quarterly.
Our Board made this decision in recognition of our excellent
prospects for 2022 and for the coming years, coupled with our
strong financial position, all of which enables us to grow inter-
nally and judiciously invest in new opportunities while reward-
ing our shareholders.
NEW BRANDS
Our portfolio welcomed two new brands in October 2021, notably
Salvatore Ferragamo and Ungaro. Operating activities for these
Philippe Benacin and Jean Madar
brands are conducted through a newly established wholly-owned
letter to shareholders
3
subsidiary based in Florence, Italy. Ferragamo fragrances are
ternal sales budget three times over, and Jimmy Choo is now
being sourced and produced in Italy, as are the brand’s travel
our second largest brand. Italian fashion brands are a special
amenities. With origins dating back to 1927, Ferragamo is re-
priority – both ones with established fragrance business and
nowned for the creation, production and worldwide distribu-
fragrance orphans. Finally, many of our existing licensors have
tion of luxury collections of shoes, leather goods, apparel, silk
multiple brands under their control, and they may seek to have
products and other accessories for men and women, including
us partner with them on their brands.
eyewear and watches. Uniqueness and exclusivity, along with the
We believe that Inter Parfums has become an increasingly de-
blend of style and exquisite ‘Made in Italy’ savoir-faire, are the
sirable partner for brand owners. As we have said before, we
hallmarks of all Ferragamo’s products. Within a few years, we
are small, but not too small, so that we are able to devote the at-
expect Ferragamo to be among our largest fragrance brands.
tention and resources necessary to grow a licensor’s fragrance
Ungaro is a legendary name synonymous with creativity, col-
business, which translates into higher royalties and broader
ors, signature cuts and patterns representing a best in class
brand recognition. Brand owners value the fact that we are a
example of the intersection of Italian creativity and crafts-
pure play in fragrance. Our distribution network has deep roots
manship and French luxury and execution. Today, the brand is
in 120 countries, with expertise in their local markets. Moreover,
best known and most prized in France, Italy, Japan and Korea.
our strong financial position lends confidence to brand owners.
Both Ferragamo and Ungaro had an array of legacy scents that
In April 2022, our European operations moved into our new Par-
form the foundation of our Italian operations, with new scents
is headquarters, giving us greater brand capacity and enhanced
for both brands on track for a 2023 launch. We are confident
coordination of our teams. And, as we just mentioned, our office
that over time, the expertise we bring to product development,
in Florence is also fully functional and ready to support and opti-
packaging, advertising and marketing will elevate the Ferraga-
mize the fragrance potential of additional brands.
mo and Ungaro fragrance profiles.
Following the signing of an agreement with the G-III Apparel
2021 PRODUCT LAUNCHES
Group in September 2021, Donna Karan and DKNY fragrances
Having withheld most of the 2020 launches until the following
will be under license come July 2022. Donna Karan is a global
year, 2021 had a large number of products rolling out, includ-
lifestyle brand founded in 1984 by the fashion pioneer of the same
ing new pillars such as the Away duo for Abercrombie & Fitch,
name. In addition to fashion and fragrance, the Donna Karan la-
Sky by Anna Sui, Bella Vita for GUESS, I Want Choo for Jimmy
bel can be found on shoes, accessories and home fashions. The
Choo, Girl for Rochas, and Alibi for Oscar de la Renta. In addi-
brand’s lead fragrance, Cashmere Mist launched in 1994 and
tion, we introduced Effect, a men’s grooming collection for the
was awarded the Fragrance Foundation Hall of Fame Award in
GUESS brand. There were also a host of extensions unveiled in
2019. In February 2022 Cashmere Mist was ranked among the
2021, including new entrants for our three leading brands with
100 Greatest Fragrances of All Time by Women’s Wear Daily.
Montblanc Explorer Ultra Blue, Jimmy Choo Urban Hero Gold,
The DKNY brand emerged in 1989 as the “next generation”
and Coach Dreams Sunset.
fashion response to Donna Karan’s then teenage daughter raid-
New entrants for new brands were also a feature of 2021. Af-
ing her mom’s closet. Today, DKNY designs, markets and glob-
ter a year’s delay, Kate Spade New York was launched to much
ally distributes collections of apparel, accessories, footwear and
acclaim. Maddie Ziegler, actress and dancer, is our spokesperson
select licensed products. Be Delicious, the brand’s best known
and model appearing in all forms of media – from print, broad-
scent which launched in 2004, was named one of The 25 Per-
cast, social media and outdoor displays. The launch of the gender
fumes of All Time in April 2022 by Marie Claire magazine. New
neutral MCM signature fragrance was accompanied by a global
fragrances for these two aligned brands are in the works, with
multi-media communications campaign entitled Travel Beyond,
introduction targeted for launch in 2023. These two brands are
capturing the essence the brand’s DNA of travel with a one-of-a-
exciting additions to our fragrance portfolio, and are expected to
kind bottle design that pays homage to the classic backpack. Our
achieve significant sales gains over the coming years.
collaboration with our MCM partners elevated fragrance, packag-
We remain on the lookout for additional brands. Our targets
ing, and marketing to a rarefied summit within our industry and as
are generally names with established businesses rather than
a result, our first MCM scent was named a finalist by the Fragrance
start-ups. That said, we are also open to ideas with great po-
Foundation in two categories: Universal Prestige and Packaging.
tential. That could be said about MCM in 2021, and back in time,
In limited distribution in late 2021, Moncler Pour Femme and
Jimmy Choo, neither of which had established fragrance busi-
Moncler Pour Homme are grounded in nature, exploration and
nesses when we teamed up. In 2021, MCM blew through our in-
discovery, essential features of the high-end sportswear brand.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 4
The silver-colored ribbing of the bottle design is reminiscent of
for GUESS with Uomo and for Boucheron with Singulier. For
the quilting in Moncler down jackets, and the 150-ml. refillable
many of our largest brands, flankers and extensions are in the
bottle comes with a rectangular LED screen so that illuminated
pipeline. For example, Montblanc is adding Legend Red to the
messages in scrolling red letters can be personalized and dis-
Legend pillar while I Want Choo Forever is joining the Jimmy
played with a Bluetooth-powered smartphone application. This
Choo family. We have new sister scents coming to market
extraordinary fragrance duo is also a Fragrance Foundation fi-
for GUESS Bella Vita, Lanvin Éclat d’ Arpège, Kate Spade New
nalist in the Innovative Product of the Year category. The Mon-
York, Rochas Girl, Anna Sui Sky, Oscar de la Renta Alibi and the
cler global rollout in 2022 will ultimately reach 3,000 doors.
Coach women’s signature line. For Abercrombie & Fitch, brand
extensions for the Away and Authentic duos are in the 2022
CHALLENGES, HEADWINDS & PRIORITIES
pipeline as are extensions for Hollister’s Canyon and Wave
As of this writing, our US operations suspended sales into
collections. To keep consumers, retailers and distributors
Russia in response to its invasion and devastation of Ukraine.
engaged with the brand, we have extensions unveiling for the
The magnitude and duration of the business impact due to war,
Ferragamo Signorina and Bright Leather collections in 2022,
sanctions and price volatility are hard to predict, but in 2021
in advance of the new pillar being readied for fall 2023.
our sales in Russia totaled $43 million.
We remain optimistic about the prospects for our business.
As in 2021, supply chain disruptions continue and sourc-
One reason is the unprecedented growth in the fragrance in-
ing components, assembling finished goods, shipping and fuel
dustry, an unexpected but welcome outgrowth of the COVID
costs remain challenging. To meet our sales goals for 2022 and
pandemic. Where in the past, consumers bought and wore
beyond, we have been carrying more inventory overall, sourcing
fragrance when they left home, during the isolation of COVID,
similar components from multiple suppliers and when possi-
consumers increasingly bought fragrances to wear at home, to
ble, manufacturing products closer to where they are sold. As
feel good about themselves and as a personal self-indulgence.
planned, our newly established operations in Italy have helped
They purchased fragrance online more than ever, and they ex-
mitigate some of the supply chain disruptions. For example, the
perimented with different scents. This trend has traction and
labor shortages in the U.S. and France are far less a factor in
is showing no signs of relenting.
Italy, so we are moving some of our manufacturing to Italy. Well
Our core strengths are an even more important cause for
beyond our Ferragamo business, Italy is playing an important
confidence. We have an expansive brand portfolio featuring
role as a point of manufacturing and distribution.
names that have appeal among diverse age groups, income
We have had to become better forecasters of future needs as
brackets, and geographic regions. We have a highly effective
some items require a one year lead time. At the same time, we
distribution network serving 120 countries, and in several of
have been investing in more sophisticated inventory management
our most important markets, we own or control the distri-
systems and added more people to the inventory management
bution organizations. In addition, we have greater bandwidth
function. That said, supply chain disruptions and inflation have,
resulting from our newly operational Paris headquarters and
and for the foreseeable future will have, an impact on costs of raw
our new base of operations in Florence. Our strong financial
materials such as glass, cardboard, wood, and aluminum, in ad-
position gives us unique business agility, along with the trust
dition to rising energy and shipping costs. On January 1, 2022 we
of suppliers and prospective licensors. We started this letter
enacted price increases ranging from 3% to 5%. Another price
by stating that 2021 was our best year ever. We have our ex-
increase of a similar magnitude will be enacted in August.
ceptional staff of creative, motivated, individuals to thank for
Hiring and retaining the best talent have become an even great-
making it so. They are the backbone of our success.
er challenge since the onset of the COVID pandemic. That need has
Sincerely yours,
been intensified with the staffing requirements of new brands and
our expanded geographic footprint. As we approach $1 billion in
sales, we have taken an important step in professionalizing the HR
function with the hiring in New York City of a Chief Human Resourc-
es Officer, a newly created position reporting to our CEO.
PLANS FOR 2022
In addition to the global rollout of the new Moncler duo, we have
Chairman of the Board
Vice Chairman of the Board
major men’s fragrance launches for Coach with Open Road,
& Chief Executive Officer
& President
letter to shareholders
5
New Headquarters in Paris
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 6
The
Company
Founded in 1982, we operate in the fragrance
business, and manufacture, market and dis-
tribute a wide array of prestige fragrance,
and fragrance related products.
Our worldwide headquarters and the office of our whol-
ly-owned United States
subsidiaries,
Jean Philippe
Fragrances, LLC and Inter Parfums USA, LLC, are located at
551 Fifth Avenue, New York, New York 10176, and our telephone
number is 212.983.2640. We also have a newly formed, whol-
ly-owned Italian subsidiary, Interparfums Italia Srl.
Our consolidated wholly-owned subsidiary, Inter Parfums
Holdings, S.A., and its majority-owned subsidiary, Inter-
parfums SA, maintain executive offices at 10 rue de Solféri-
no, 75007 Paris, France. Our telephone number in Paris is
331.5377.0000. Interparfums SA is the sole owner of one (1)
distribution subsidiary: Interparfums Luxury Brands, Inc., a
Delaware corporation, for distribution of prestige brands in
the United States. Interparfums SA is also the majority own-
er of Parfums Rochas Spain, SL, a Spanish limited liability
company, which specializes in the distribution of Rochas fra-
grances. In addition, Interparfums SA is also the sole owner
of Interparfums (Suisse) SARL, a company formed to hold and
manage certain brand names, and Interparfums Asia Pacific
Pte., Ltd., an Asian sales and marketing office.
Our common stock is listed on The Nasdaq Global Select
Market under the trading symbol “IPAR”. The common shares
of our subsidiary, Interparfums SA, are traded on the Eu-
ronext Exchange.
The Securities and Exchange Commission (“SEC”) maintains
an internet site at http://www.sec.gov that contains financial
reports, proxy and information statements, and other informa-
tion regarding issuers that file electronically with the SEC. We
maintain our internet website at www.interparfumsinc.com,
which is linked to the SEC internet site. You can obtain through
our website, free of charge, our annual reports on Form 10-K,
quarterly reports on Form 10-Q, interactive data files, current
reports on Form 8-K, beneficial ownership reports (Forms 3,
4 and 5) and amendments to those reports filed or furnished
pursuant to Section 13(a) of the Securities Exchange Act of
1934 as soon as reasonably practicable after they have been
electronically filed with or furnished to the SEC.
We operate in the fragrance business and manufacture,
market and distribute a wide array of fragrance and fragrance
related products. We manage our business in two segments,
European based operations and United States based operations.
Moncler Pour Femme
Certain prestige fragrance products are produced and mar-
keted by our European operations through our 27% owned
the company
7
T H E U LT I M AT E L AY E R O F L U X U R Y
Donna Karan Cashmere Mist
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 8
subsidiary in Paris, Interparfums SA, which is also a publicly
traded company as 73% of Interparfums SA shares trade on
United States Operations
Prestige brand fragrance products are also produced and
the NYSE Euronext.
marketed through our United States operations, and rep-
Our business is not capital intensive, and it is important to
resented approximately 25% of net sales for the year ended
note that we do not own manufacturing facilities. We act as a
December 31, 2021. These fragrance products are sold under
general contractor and source our needed components from
trademarks owned by us or pursuant to license or other agree-
our suppliers. These components are received at one of our
ments with the owners of brands, which include Abercrombie
distribution centers and then, based upon production needs,
& Fitch, Anna Sui, Dunhill, Ferragamo, Graff, GUESS, Hollister,
the components are sent to one of several third party fillers
MCM, Oscar de la Renta and Ungaro.
which manufacture the finished product for us and deliver
them to one of our distribution centers.
Our fragrance products focus on prestige brands, each with
a devoted following. By concentrating in markets where the
BUSINESS STRATEGY
Focus On Prestige Beauty Brands
Prestige beauty brands are expected to contribute significantly
brands are best known, we have had many successful product
to our growth. We focus on developing and launching quality
launches. We typically launch new fragrance families for our
fragrances utilizing internationally renowned brand names.
brands every year or two, and more frequently seasonal and
By identifying and concentrating in the most receptive market
limited edition fragrances are introduced as well.
segments and territories where our brands are known, and
The creation and marketing of each product family is inti-
executing highly targeted launches that capture the essence
mately linked with the brand’s name, its past and present po-
of the brand, we have had a history of successful launches.
sitioning, customer base and, more generally, the prevailing
Certain fashion designers and other licensors choose us as a
market atmosphere. Accordingly, we generally study the market
partner, because our Company’s size enables us to work more
for each proposed family of fragrance products for almost a full
closely with them in the product development process as well
year before we introduce any new product into the market. This
as our successful track record.
study is intended to define the general position of the fragrance
family and more particularly its scent, bottle, packaging and ap-
peal to the buyer. In our opinion, the unity of these four elements
of the marketing mix makes for a successful product.
Grow Portfolio Brands Through
New Product Development And Marketing
Prestige brands are the core of our business, and we intend to
As with any business, many aspects of our operations are
add new prestige beauty brands to our portfolio. Over the past
subject to influences outside our control. We believe we have
30 years, we have built our portfolio of well-known prestige
a strong brand portfolio with global reach and potential. As
brands through acquisitions and new license agreements. We
part of our strategy, we plan to continue to make investments
intend to further build on our success in prestige fragrances
behind fast-growing markets and channels to grow market
and pursue new licenses and acquire new brands to strengthen
share. We discuss in greater detail risk factors relating to our
our position in the prestige beauty market. To that end, in
business in Item 1A of this Annual Report on Form 10-K for the
2020, we signed a new license for the Moncler brand. We
fiscal year ended December 31, 2021, and the reports that we
also acquired a minority interest in Divabox, which owns the
file from time to time with the SEC.
Origines-parfums online platform. As a website of reference
European Operations
We produce and distribute our fragrance products primarily
for all selective fragrance brands, Origines-parfums is a key
French player in the online beauty market recognized for its
customer relationship expertise. This acquisition enhances the
under license agreements with brand owners, and fragrance
introduction of dedicated fragrance lines and products designed
product sales through our European operations represent-
to address a specific consumer demand for this distribution
ed approximately 75% of net sales for 2021. We have built a
channel and accelerate our digital development. During
portfolio of prestige brands, which include Boucheron, Coach,
2021, we closed on a transaction agreement with Salvatore
Jimmy Choo, Karl Lagerfeld, Kate Spade New York, Lanvin,
Ferragamo S.p.A., whereby an exclusive and worldwide license
Moncler, Montblanc, Rochas, S.T. Dupont and Van Cleef &
was granted for the production and distribution of Ferragamo
Arpels, whose products are distributed in over 120 countries
brand perfumes. In 2021, we also entered into a long-term
around the world.
global licensing agreement for the creation, development and
the company
9
distribution of fragrances and fragrance-related products
license are subject to certain minimum advertising expenditures
under the Donna Karan and DKNY brands. This exclusive
and royalty payments as are customary in our industry. The li-
license becomes effective on July 1, 2022. As of December
cense is effective from October 2021 and will last for 10 years
31, 2021, we had cash, cash equivalents and short-term
with a 5-year optional term, subject to certain conditions.
investments of approximately $320 million, which we
With respect to the management and coordination of activities re-
believe should assist us in entering new brand licenses or
lated to the license agreement, the Company will operate through a
outright acquisitions. We identify prestige brands that can
wholly-owned Italian subsidiary Interparfums Italia srl, which was
be developed and marketed into a full and varied product
acquired from Salvatore Ferragamo on October 1, 2021.
families and, with our technical knowledge and practical
experience gained over time, take licensed brand names
through all phases of concept, development, manufacturing,
Emanuel Ungaro
In October 2021, we also entered into a 10-year exclusive global
marketing and distribution.
licensing agreement a with a 5-year optional term subject to cer-
Expand Existing Portfolio
Into New Categories
We selectively broaden our product offering beyond the
tain conditions, with Emanuel Ungaro Italia srl, for the creation,
development and distribution of fragrances and fragrance-relat-
ed products, under the Emanuel Ungaro brand. Our rights under
this license are subject to certain minimum advertising expen-
fragrance category and offer other fragrance related prod-
ditures and royalty payments as are customary in our industry.
ucts and personal care products under some of our existing
brands. We believe such product offerings meet customer
needs and further strengthen customer loyalty.
Donna Karan and DKNY
In September 2021, we entered into a long-term global licensing
agreement for the creation, development and distribution of fra-
Continue To Build
Global Distribution Footprint
Our business is a global business, and we intend to continue
grances and fragrance-related products under the Donna Karan
and DKNY brands. Our rights under this license are subject to
certain minimum advertising expenditures and royalty payments
to build our global distribution footprint. In order to adapt to
as are customary in our industry. With this agreement, we are
changes in the environment and our business, in addition to
gaining several well-established and valuable fragrance fran-
our arrangements with third party distributors globally, we
chises, most notably Donna Karan Cashmere Mist and DKNY Be
are operating distribution subsidiaries or divisions in the ma-
Delicious, as well as a significant loyal consumer base around
jor markets of the United States, France and Spain for distri-
the world. The exclusive license is effective July 1, 2022, and
bution of prestige fragrances. We may look into future joint
we are planning to launch new fragrances under these brands
arrangements or acquire distribution companies within oth-
in 2023.
er key markets to distribute certain of our prestige brands.
While building a global distribution footprint is part of our
long-term strategy, we may need to make certain decisions
French Tax Settlement
The French authorities had claimed that the existence of
based on the short-term needs of the business. We believe
Inter Parfums (Suisse) Sarl, a wholly-owned subsidiary of
that in certain markets, vertical integration of our distribu-
Interparfums SA, our majority owned Paris-based subsidiary,
tion network may be one of the keys to future growth of our
does not, in and of itself, constitute a permanent establishment,
Company, and ownership of such distribution should enable
and therefore Interparfums SA should pay French taxes on all or
us to better serve our customers’ needs in local markets and
part of the profits of that entity.
adapt more quickly as situations may determine.
In June 2021, a global settlement agreement was reached with
the French Tax Authorities, whereby Interparfums SA paid in De-
RECENT DEVELOPMENTS
Salvatore Ferragamo
In October 2021, we closed on a transaction agreement
cember 2021, €2.5 million (approximately $2.9 million) effectively
lowering the Lanvin brand royalty rate charged by Inter Parfums
(Suisse) Sarl for the periods from 2017 through 2020. Interpar-
with Salvatore Ferragamo S.p.A., whereby an exclusive and
fums SA also agreed to apply the lower rate in 2021 through 2025
worldwide license was granted for the production and distri-
and to transfer the Lanvin brand from Inter Parfums (Suisse) Sarl
bution of Ferragamo brand perfumes. Our rights under this
to Interparfums SA by December 31, 2025.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 10
Land and Building Acquisition
- Headquarters in Paris
In April 2021, Interparfums SA completed the acquisition of
pairment charge on our Rochas fashion trademark. The new
license also contains an option for the licensee to buy-out
the Rochas fashion trademarks in June 2025 at its then fair
its future headquarters at 10 rue de Solférino in the 7th ar-
market value.
rondissement of Paris from the property developer. This is
an office complex combining three buildings connected by
two inner courtyards, and consists of approximately 40,000
total sq. ft.
S.T. Dupont
In January 2021, we renewed our license agreement with
S.T. Dupont for the creation, development and distribution
The $142 million purchase price includes the complete ren-
of fragrance products through December 31, 2022, without
ovation of the site. As of December 31, 2021, $136.1 million of
any material changes in terms and conditions. Our initial 11-
the purchase price, including approximately $3.1 million of ac-
year license agreement with S.T. Dupont was signed in June
quisition costs, is included in property, equipment and lease-
1997 and had previously been extended through December
hold improvements on the accompanying balance sheet as of
31, 2021.
December 31, 2021. Approximately $8.8 million of cash held in
escrow is included in other assets on the accompanying con-
solidated balance sheet as of December 31, 2021. In addition,
Origines-Parfums
In June 2020, the Company through its 73% owned subsidiary,
the Company borrowed $17.0 million pursuant to a short-term
Interparfums SA, and Divabox SAS (“Divabox”), owner of the
loan equal to the VAT credit, and in July 2021, the $17.0 million
Origines-parfums e-commerce platform for beauty products,
VAT credit was reimbursed by the French Tax Authorities and
signed a strategic agreement and equity investment pursu-
the loan was repaid.
ant to which we acquired a 25% of Divabox capital for $14.0
The acquisition was financed by a 10-year €120 million (ap-
million, through a capital increase. In connection with the ac-
proximately $139 million) bank loan which bears interest at
quisition, the Company entered into a $13.4 million term loan,
one-month Euribor plus 0.75%. Approximately €80 million of
which was repaid in full in February 2021. As a website of ref-
the variable rate debt was swapped for fixed interest rate debt
erence for all selective fragrance brands, Origines-parfums
with a maximum interest rate of 2%.
is a key French player in the online beauty market recognized
This acquisition is a unique opportunity with benefits to be
for its customer relationship expertise. This agreement
realized over the long-term. Owning our corporate headquar-
should enhance the introduction of dedicated fragrance lines
ters in a very prestigious part of Paris, and customizing the
and products designed to address a specific consumer de-
complex for our European operations, will enhance our repu-
mand for this distribution channel and accelerate our digital
tation, provide an exceptional work environment, as well as a
development.
welcoming and productive atmosphere for our suppliers, dis-
tributors and licensors.
Moncler
In June 2020, the Company entered into an exclusive, 5-year
Anna Sui Corp.
In January 2021, we renewed our license agreement with Anna
worldwide license agreement with a potential 5-year extension
with Moncler for the creation, development and distribution
Sui Corp. for the creation, development and distribution of
of fragrances under the Moncler brand. Our rights under this
fragrance products through December 31, 2026, without any
license are subject to certain minimum advertising expendi-
material changes in terms and conditions. Our initial 10-year
tures and royalty payments as are customary in our industry.
license agreement with Anna Sui Corp. was signed in 2011. The
Moncler was founded at Monestier-de-Clermont, Grenoble,
renewal agreement also allows for an additional 5-year term
France, in 1952 and is currently headquartered in Italy. Over
through 2031 at the option of the Company.
the years, the brand has combined style with constant tech-
Rochas Fashion
Effective January 1, 2021, we entered into a new license agree-
nological research assisted by experts in activities linked to
the world of the mountain. The Moncler outerwear collections
marry the extreme demands of nature with those of city life.
ment modifying our Rochas fashion business model. The new
Following a successful prelaunch in late 2021, our first fra-
agreement calls for a reduction in royalties to be received. As
grance launch for the Moncler brand is rolling out in the first
a result, in the first quarter of 2021, we took a $2.4 million im-
quarter of 2022.
the company
11
PRODUCTION AND SUPPLY
MARKETING AND DISTRIBUTION
The stages of the development and production process for all
Our products are distributed in over 120 countries around the
fragrances are as follows:
world through a selective distribution network. For our interna-
• Simultaneous discussions with perfume designers and
tional distribution, we either contract with independent distribu-
creators (includes analysis of esthetic and olfactory trends,
tion companies specializing in luxury goods or distribute prestige
target clientele and market communication approach)
products through our distribution subsidiaries. In each country,
• Concept choice
we designate anywhere from one to three distributors on an ex-
• Produce mock-ups for final acceptance of bottles and
clusive basis for one or more of our name brands. We also distrib-
packaging
ute our products through a variety of duty free operators, such as
• Receive bids from component suppliers (glass makers,
airports and airlines and select vacation destinations.
plastic processors, printers, etc.) and packaging companies
As our business is a global one, we intend to continue to
• Choose suppliers
build our global distribution footprint. For distribution of
• Schedule production and packaging
brands within our European based operations we operate
• Issue component purchase orders
through our distribution subsidiaries or divisions in the major
• Follow quality control procdures for incoming components;
markets of the United States, France, Italy and Spain, in addi-
and
tion to our arrangements with third party distributors globally.
• Follow packaging and inventory control procedures
Our third party distributors vary in size depending on the num-
ber of competing brands they represent. This extensive and di-
Suppliers who assist us with product development include:
verse network together with our own distribution subsidiaries
• Independent perfumery design companies (Aesthete, Carré
provides us with a significant presence in over 120 countries
Basset, PI Design, Cent Degrés)
around the world.
• Perfumers (IFF, Givaudan, Firmenich, Robertet, Takasago,
Over 50% of our European based prestige fragrance net sales
Mane) which create a fragrance consistent with our expecta-
are denominated in U.S. dollars. We address certain financial ex-
tions and, that of the fragrance designers and creators
posures through a controlled program of risk management that
• Fillers (Voyant, CPFPI, Omega Packaging, Société de
includes the use of derivative financial instruments. We primarily
Diffusion de Produits de Parfumerie, TSM Brands)
enter into foreign currency forward exchange contracts to reduce
• Bottle manufacturers (Pochet du Courval, Verescence,
the effects of fluctuating foreign currency exchange rates.
Verreries Brosse, Bormioli Luigi, Stoelzle Masnières, Heinz),
The business of our European operations has become in-
caps (Qualipac, ALBEA, RPC, Codiplas, LF Beauty, Texen
creasingly seasonal due to the timing of shipments by our dis-
Grou, S.A.R.L. J3P, SBG Packaging Group), Pumps (Silgan
tribution subsidiaries and divisions to their customers, which
Dispensing Systems Thomaston Corp, Rexam) or boxes
are weighted to the second half of the year.
(Autajon, MMPP, Nortier, Draeger)
For our United States operations, we distribute product to
• Production specialists who carry out packaging (CCI, Edipar,
retailers and distributors in the United States as well as inter-
Jacomo, Société de Diffusion de Produits de Parfumerie,
nationally, including duty free and other travel-related retail-
MF Productions, Biopack) or logistics (Bansard and Bolloré
ers. We utilize our in-house sales team to reach our third party
Logistics for storage, order preparation and shipment)
distributors and customers outside the United States. In addi-
tion, the business of our United States operations has become
Suppliers’ accounts for our European operations are pri-
increasingly seasonal as shipments are weighted toward the
marily settled in euro and for our United States operations,
second half of the year.
suppliers’ accounts are primarily settled in U.S. dollars. For
For our United States operations, we distribute product to
our European operations components for our prestige fra-
retailers and distributors in the United States as well as inter-
grances are purchased from many suppliers around the world
nationally, including duty free and other travel-related retail-
and are primarily manufactured in France.
ers. We utilize our in-house sales team to reach our third party
For United States operations, components for our prestige fra-
distributors and customers outside the United States. In addi-
grances are sourced from many suppliers around the world and are
tion, the business of our United States operations has become
primarily manufactured in the United States. However, occasionally,
increasingly seasonal as shipments are weighted toward the
we will utilize third party manufacturers in France, China and Turkey.
second half of the year.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
12
Boucheron
December 31, 2025,
plus a 5-year optional term
if certain sales targets are met
Coach
June 30, 2026
Donna Karan
December 31, 2032*,
plus a 5-year optional term
if certain sales targets are met
Dunhill
September 30, 2023
Emanuel Ungaro
December 31, 2031,
plus a 5-year optional term
if certain sales targets are met
French Connection
December 31, 2027, plus a 10-
Graff
GUESS
Hollister
Kate Spade
Jimmy Choo
year optional term if certain
sales targets are met
December 31, 2026,
plus 3 optional 3-year terms
if certain sales targets are met
December 31, 2033
Extends until either party
terminates on 3 years’ notice
June 30, 2030
December 31, 2031
Karl Lagerfeld
October 31, 2032
MCM
Moncler
December 31, 2030,
plus 4 option years
December 31, 2026,
plus a 5-year optional term if
certain conditions are met
Montblanc
December 31, 2025
Oscar de la Renta
December 31, 2031,
plus a 5-year optional term
if certain sales targets are met
Salvatore Ferragamo
December 31, 2031, plus a 5-year
optional term if certain sales
targets are met
S.T. Dupont
December 31, 2022
Van Cleef & Arpels
December 31, 2024
The
Products
We are the owner of the Rochas brand, and
the Lanvin brand name and trademark for
our class of trade. In addition, we have built
a portfolio of licensed prestige brands where-
by we produce and distribute our prestige fra-
grance products under license agreements
with brand owners. Under license agreements,
we obtain the right to use the brand name, cre-
ate new fragrances and packaging, determine
positioning and distribution, and market and
sell the licensed products, in exchange for
the payment of royalties. Our rights under li-
cense agreements are also generally subject
to certain minimum sales requirements and
advertising expenditures as are customary in
our industry.
Our licenses for these brands expire on the following dates:
In connection with the acquisition of the Lanvin brand
Brand Name
Expiration Date
seller the right to repurchase the brand names and trade-
Abercrombie & Fitch
Extends until either party
marks in 2025 for the greater of €70 million (approximately
terminates on 3 years’ notice
$86 million) or one times the average of the annual sales for
Anna Sui
December 31, 2026,
the years ending December 31, 2023 and 2024.
names and trademarks for our class of trade, we granted the
bebe Stores
June 30, 2023
* license effective July 1, 2022
plus one 5-year optional term
the products
13
Fragrance
Portfolio
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 14
In 2014, we entered into a worldwide license to create, produce
and distribute new fragrances and fragrance related products
under the Abercrombie & Fitch brand name. We distribute
these fragrances in specialty stores, department stores and
duty free shops, and in the U.S., in select Abercrombie &
Fitch retail stores. Our initial men’s scent, First Instinct was
launched in 2016 followed by a women’s version in 2017. Since
that time, we unveiled several new fragrances most notably
the Authentic and Away duos as well as brand extensions.
Abercrombie & Fitch Co. is a leading, global, omnichannel
specialty retailer of apparel and accessories for men, wom-
en and kids. The iconic Abercrombie & Fitch brand was born
in 1892 and aims to make every day feel as exceptional as the
start of a long weekend.
the products
15
Abercrombie & Fitch Away Tonight
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In 2011, we entered into an exclusive worldwide fragrance
license to create, produce and distribute fragrances and fra-
grance related products under the Anna Sui brand. Anna Sui
is one of New York’s most accomplished fashion designers
known for creating contemporary clothing inspired by vintage
style that capture the brand’s very sweet feminine girly aspect,
combined with touch hipness and rock-and-roll. Today, Anna
Sui has over 50 boutiques and her collection and products are
sold in 300 stores in over 30 countries, but her brand is by far
most popular and well received throughout Asia. Over the past
decade, we have worked in partnership with Anna Sui and her
creative team to build upon the brand’s customer appeal and
develop and market a family of fragrances including Fantasia,
Sui Dreams and the newest scent, Sky, which was ranked as
the second best perfume launch of 2021 by WWD Japan.
the products
17
Anna Sui Cosmic Sky
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 18
In 2010, we entered into an exclusive 15-year worldwide li-
cense agreement for the creation, development and distri-
bution of fragrances under the Boucheron brand. For over a
century, since becoming the first jeweler to open a boutique on
Place Vendôme in 1893, Boucheron has embodied very high-
end creation, luxury and French know-how. The mysterious
and seductive collection of Boucheron fragrances unquestion-
ably continues this prestigious brand mystique.
Boucheron legacy scents, Femme and Homme, and the leg-
endary Jaipur perfume form the foundation of brand sales.
Our team has enriched the portfolio with Quatre for men and
women, along with several special editions, a growing collec-
tion of unique scents aptly named, La Collection, and Serpent
Boheme. We have a new Boucheron men’s fragrance in the
works for 2022, as well as still another addition to our Bouche-
ron Collection. Currently Boucheron operates through over 66
boutiques worldwide as well as an e-commerce site.
the products
19
BOUCHERON_QUATRE_ICONIC_MODEL_POS_136_160,5x218_UK.indd 1
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Boucheron Quatre Iconic
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23/03/2022 12:35
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In 2015, we entered into an exclusive 11-year worldwide license
to create, produce and distribute new men’s and women’s fra-
grances and fragrance related products under the Coach brand
name. We distribute these fragrances globally to department
stores, specialty stores and duty free shops, as well as in Coach
retail stores.
Founded in 1941, Coach is the ultimate American leather goods
brand and has always been renowned for its quality crafts-
manship. Now the luxury brand that best embodies New York’s
casual elegance, Coach also offers collections of ready-to-
wear, lifestyle accessories and fragrances. Its contemporary
approach to luxury combines authenticity and innovation, ex-
ported worldwide thanks to its thoroughly American non-con-
formist vision.
In 2016, we launched our first Coach fragrance, a women’s
signature scent, and in 2017, a men’s scent, both of which be-
came and remain top selling prestige fragrances. Subsequent
flankers and extensions have enlarged the Coach fragrance
enterprise as have entirely new collections, including Coach
Dreams which debuted in early 2020, and its sister scent,
Dreams Sunset, debuting in 2021. For 2022, we have a new pillar
for men unveiling, and new edition to the Coach women’s line.
Coach is part of the Tapestry house of brands.
the products
21
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COACH_WildRose_MODEL_POS_135_160,5x218.indd 1
Coach Coach Wild Rose
24/03/2022 17:03
24/03/2022 17:03
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DKNY fragrances will
join the Inter Parfums fragrance
portfolio on July 1, 2022. The DKNY brand emerged in 1989
as the “next generation” fashion response to Donna Karan’s
then teenage daughter raiding her mom’s closet. Today,
DKNY designs, markets and globally distributes collections of
apparel, accessories, footwear and select licensed products. Be
Delicious, the brand’s best known scent which launched in
2004, was named one of the 25 Perfumes of All Time in April
2022 by Marie Claire magazine. There are new products for the
brand under development. Like our Donna Karan fragrance
license, our exclusive DKNY license was awarded by G-III
Apparel Group in September 2021.
23
DKNY Be Delicious
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 24
Come July 2022, our long-term global licensing agreement
with the G-III Apparel Group for the creation, development
and distribution of fragrances under the Donna Karan brand
becomes effective. Donna Karan is recognized as a fashion
pioneer, and in 2004 she received a lifetime achievement award
from the Council of Fashion Designers of America. While
inspired by the energy and attitude of New York City in 1984,
today Donna Karan is a global lifestyle brand whose products
are sold worldwide. In addition to fashion and fragrance, the
Donna Karan label can be found on shoes, accessories and
home fashions. The brand’s lead fragrance, Cashmere Mist
launched in 1994 and was awarded the Fragrance Foundation
Hall of Fame Award in 2019. In February 2022 Cashmere Mist
was ranked among the 100 Greatest Fragrances of All Time by
WWD. A new fragrance for the brand is in the works for 2023.
25
Donna Karan Cashmere Mist
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 26
In October 2021, we also entered into a 10-year exclusive global
licensing agreement with Emanuel Ungaro for the creation,
development and distribution of fragrances and fragrance-
related products, under the Emanuel Ungaro brand. Founded
in 1965 in Paris, the house Emanuel Ungaro is an icon of French
refinement and haute couture. Its unique style is expressed
through unquestioning sensuality, purity of silhouette,
flamboyant prints, and exquisite attention to details. Season
after season, Emanuel Ungaro dared to be different, combining
unexpected yet sensual clashes of bright colors and prints with
beautiful draping. Today Ungaro fragrances uphold the same
values of audacity and elegance, and the brand is best known
and most prized internationally, and such presence will remain
our sales focus as we continue to produce and distribute the
brand’s legacy scents, notably Diva. Beginning in 2023, we
plan to unveil a new fragrance incorporating disruptive design,
driven by creativity and authenticity.
the products
27
Emanuel Ungaro Diva
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 28
In 2018, we entered into an exclusive, 8-year worldwide license
agreement with London-based Graff for the creation, develop-
ment and distribution of fragrances under the Graff brand. The
8-year agreement has three 3-year automatic renewal options,
potentially extending the license until December 31, 2035.
Since Laurence Graff OBE founded the company in 1960,
Graff has been dedicated to sourcing and crafting diamonds
and gemstones of untold beauty and rarity and transforming
them into spectacular pieces of jewelry that move the heart
and stir the soul. Throughout its rich history, Graff has become
the world leader for diamonds of rarity, magnitude and distinc-
tion. Each jewelry creation is designed and manufactured in
Graff’s London atelier, where master craftsmen employ tech-
niques to emphasize the beauty of each individual stone. The
company remains a family business, overseen by Francois
Graff, Chief Executive Officer.
For Graff, a six-scent collection for women, Lesedi La Rona,
debuted exclusively at Harrods beginning in March 2020, which
we further extended as a result of the mandatory store clos-
ings throughout that year. In 2021, a select market rollout be-
gan in the Middle East, with limited luxury distribution to only
the most exclusive, upmarket retail outlets. In 2022, we’ll be
adding two new scents for the Lesedi La Rona collection.
the products
29
L E S E D I L A R O N A F R A G R A N C E S
Graff Lesedi La Rona Fragrances
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In 2018, we entered into an exclusive, 15-year worldwide li-
cense agreement with GUESS?, Inc. for the creation, develop-
ment and distribution of fragrances under the GUESS brand.
Established in 1981, GUESS began as a jeans compa-
ny and has since successfully grown into a global lifestyle
brand. GUESS?, Inc. designs, markets, distributes and li-
censes a lifestyle collection of contemporary apparel, denim,
handbags, watches, footwear and other related consumer
products. GUESS products are distributed through brand-
ed GUESS stores as well as better department and specialty
stores around the world.
We began selling GUESS legacy scents in 2018. In 2019 the
GUESS brand quickly became the largest within our U.S. op-
erations, with legacy fragrances dominating the sales mix. In
2019, we began shipments of 1981 Los Angeles and Seductive
Noir, both flankers of established scents, which accelerated
brand growth.
Nearly three years in the making, our first new blockbuster
scent, Bella Vita, debuted for the GUESS brand both domes-
tically and internationally in 2021. In addition, Effect, a new
men’s grooming line and fragrance collection, was launched
in 2021. Uomo, a new men’s fragrance for GUESS, comes to
market in 2022.
the products
31
Guess Uomo
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In 2014, we entered into a worldwide license to create, produce
and distribute new fragrances and fragrance related products
under the Hollister brand name. We distribute these fragranc-
es in specialty stores, department stores and duty free shops,
as well as select Hollister retail stores in the U.S. In 2016, we
launched our first men’s and women’s fragrance duo, Wave
which led to flankers and extensions as did subsequent fra-
grance families Festival and Canyon Escape.
The quintessential apparel brand of the global teen con-
sumer, Hollister Co. celebrates the liberating spirit of the end-
less summer inside everyone. Inspired by California’s laidback
attitude, Hollister’s clothes are designed to be lived in and
made your own, for wherever life takes you.
the products
33
Hollister Canyon Rush
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In 2009, we entered into an exclusive 12-year worldwide license
agreement for the creation, development and distribution of
fragrances and fragrance related products under the Jimmy
Choo brand, and in 2017, we extended the license agreement
which now runs through December 31, 2031.
Jimmy Choo encompasses a complete luxury accessories
brand. Women’s shoes remain the core of the product offer-
ing, alongside handbags, small leather goods, scarves, eye-
wear, belts, fragrance and men’s shoes. Jimmy Choo has a
global store network encompassing more than 200 stores and
is present in the most prestigious department and specialty
stores worldwide. Jimmy Choo is part of the Capri Holdings
Limited luxury fashion group.
Our initial Jimmy Choo fragrance was launched in 2011, a
signature scent for women. In the decade that followed, Jim-
my Choo has grown to become our second largest brand with
new pillars and flankers debuting regularly, both for men and
women. Our newest women’s fragrance, I Want Choo, was
launched in 2021 and for 2022, we have a new Jimmy Choo Man
flanker as well as one for I Want Choo.
the products
35
Jimmy Choo I Want Choo
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In 2012, we entered into a 20-year worldwide license agree-
ment with Karl Lagerfeld B.V., the internationally renowned
haute couture fashion house, to create, produce and distribute
fragrances under the Karl Lagerfeld brand.
Under the creative direction of the late Karl Lagerfeld, one
of the world’s most influential and iconic designers, the Lager-
feld Portfolio represents a modern approach to distribution,
an innovative digital strategy and a global 360 degree vision
that reflects the designer’s own style and soul. Karl Lagerfeld
created the first fragrance that bears his name in 1978, and
that legacy has expanded to include several growing multi-
scent collection, Les Parfums Matières and most recently,
Karl Cities, a new collection featuring entries for New York,
Paris, Hamburg and Tokyo was unveiled.
the products
37
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Karl Lagerfeld Les Parfums Matières
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23/03/2022 09:56
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In 2019, we entered into an exclusive, 11-year worldwide li-
cense agreement with Kate Spade to create, produce and dis-
tribute new perfumes and fragrance related products under
the Kate Spade brand which we distribute globally to depart-
ment and specialty stores and duty free shops, as well as in
Kate Spade retail stores. Our first original scent, Kate Spade
New York, debuted in January 2021 and for 2022, we are adding
a flanker to our line.
Since its launch in 1993 with a collection of six essential
handbags, Kate Spade has always stood for optimistic fem-
ininity. Today, the brand is a global life and style house with
handbags, ready-to-wear, jewelry, footwear, gifts, home décor
and more. Polished ease, thoughtful details and a modern,
sophisticated use of color—Kate Spade’s founding principles
define a unique style synonymous with joy. Under the vision of
its creative director, the brand continues to celebrate confident
women with a youthful spirit. Kate Spade is part of the Tapestry
house of brands.
the products
39
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KateSpade_Sparkle_Bottle_POS_135_160,5x218.indd 1
Kate Spade Sparkle
23/03/2022 11:01
23/03/2022 11:01
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In 2007, we acquired the worldwide rights to the Lanvin brand
names and international trademarks listed in Class 3, our
class of trade. A synonym of luxury and elegance, the Lanvin
fashion house, founded in 1889 by Jeanne Lanvin, expanded
into fragrances in the 1920s.
Lanvin fragrances occupy an important position in the se-
lective distribution market in France, Eastern Europe and Asia,
and we have several lines currently in distribution, including
Éclat d’Arpège, Lanvin L’Homme, Jeanne Lanvin, Modern Prin-
cess and A Girl in Capri. The Éclat d’Arpège line accounts for
almost 50% of brand sales. Les Fleurs de Lanvin, a new flo-
ral fragrance collection, was released during the second half
2021. For 2022, we have a new extension unveiling for our Éclat
d’Arpège line.
the products
41
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LES_FLEURS_DE_LANVIN_TRIO_POS_136_160,5x218.indd 1
Lanvin Les Fleurs de Lanvin
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23/03/2022 09:49
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In 2019, we entered into an exclusive, 10-year worldwide li-
cense agreement with German luxury fashion house MCM
for the creation, development and distribution of fragrances
under the MCM brand. The agreement has a 4-year auto-
matic renewal option, potentially extending the license until
December 31, 2034.
MCM is a luxury lifestyle goods and fashion house founded
in 1976 with an attitude defined by the cultural Zeitgeist and
its German heritage with a focus on functional innovation, in-
cluding the use of cutting-edge techniques. Today, through its
association with music, art, travel and technology, MCM em-
bodies the bold, rebellious and aspirational. Always with an
eye on the disruptive, the driving force behind MCM centers on
revolutionizing classic design with futuristic materials. MCM’s
millennial and Gen Z audience is genderless, ageless, empow-
ered and unconstrained by rules and boundaries.
Following through on our plan to develop extraordinary
fragrances that capture the creative spirit of MCM, our first
new fragrance, MCM, was released during the first quarter of
2021 to great, and somewhat unexpected success. A flanker
is in the pipeline for 2022 along with a special edition called
MCM EDP Collector’s Edition. Our distribution strategy en-
compasses MCM stores, high-end department stores and
prestige beauty retailers, with a geographic focus on Asia,
the Americas and Europe.
the products
43
MCM EDP
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In June 2020, we entered into an exclusive, 5-year worldwide
license agreement with a potential 5-year extension with
Moncler for the creation, development and distribution of
fragrances under the Moncler brand. Moncler was founded
at Monestier-de-Clermont, Grenoble, France, in 1952 and is
currently headquartered in Italy. Over the years, the brand has
combined style with constant technological research assisted
by experts in activities linked to the world of the mountain. The
Moncler outerwear collections marry the extreme demands of
nature with those of city life.
Our first fragrance for the Moncler brand has a revolution-
ary LED design, and the flask-shaped bottles of Moncler Pour
Femme and Moncler Pour Homme forge a powerful bond with
the House Moncler’s alpine roots and pioneering spirit. This
playful and unique innovation enables its owner to write a
personalized note that scrolls in red letters on the screen of
the mirror bottle. Our first fragrance was pre-launched in 250
select outlets in the second half of 2021, and was met with an
excellent response. A full rollout to approximately 3,000 doors
began in early 2022.
45
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Moncler Pour Homme
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In 2010, we entered into an exclusive license agreement to cre-
ate, develop and distribute fragrances and fragrance related
products under the Montblanc brand. In 2015, we extended the
agreement which now runs through December 31, 2025.
Montblanc has achieved a world-renowned position in
the luxury segment and has become a purveyor of exclusive
products, which reflect today’s exacting demands for timeless
design, tradition and master craftsmanship. Through its lead-
ership positions in writing instruments, watches and leather
goods, promising growth outlook in women’s jewelry, inter-
national retail footprint through its network of more than 600
boutiques, high standards of product design and quality, Mont-
blanc has grown to be our largest fragrance brand.
In 2011, we launched our first new Montblanc fragrance,
Legend, which quickly became our best-selling men’s line and
has given rise to a plethora of flankers including Legend Night
and Legend Spirit. In 2014, we launched our second men’s line,
Emblem and like its predecessor, Emblem gave rise to brand
extensions. In 2019, we unveiled Montblanc Explorer, which
has added flankers, most recently Montblanc Explorer Ultra
Blue. The Legend continues, as in 2022, we will be introducing
a new flanker, Montblanc Legend Red.
the products
47
Montblanc Legend Red
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In 2013, we entered into an exclusive worldwide license to
create, produce and distribute fragrances and fragrance re-
lated products under the Oscar de la Renta brand. In 2019,
the agreement was extended through December 31, 2031,
with an additional five-year option potentially extending the
agreement through December 31, 2036. After taking over
distribution of the brand’s legacy fragrances in 2014, we in-
troduced Extraordinary the following year. Oscar de la Renta
Bella Blanca debuted in 2018, followed by Bella Rosa and Bella
Essence and soon to join them, Bella Bouquet. Debuting in
2021 was an entirely new fragrance pillar, Alibi which will wel-
come a sister scent in 2022.
Oscar de la Renta is one of the world’s leading luxury goods
firms. The New York-based company was established in 1965,
and encompasses a full line of women’s accessories, bridal,
children’s wear, fragrance, beauty and home goods, in addition
to its internationally renowned signature women’s ready to
wear collection. Oscar de la Renta products are sold globally
in fine department and specialty stores, www.oscardelarenta.
com and through wholesale channels.
the products
49
Oscar de la Renta Alibi EDT
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In 2015, we acquired the Rochas brand from The Procter &
Gamble Company. Founded by Marcel Rochas in 1925, the
brand began as a fashion house and expanded into perfumery
in the 1950s under Hélène Rochas’ direction.
Our first new fragrance for Rochas, Mademoiselle Rochas,
had a successful launch in 2017 in its traditional markets of
France and Spain. Over the next few years, we debuted flank-
ers for legacy scents Eau de Rochas and Mademoiselle Ro-
chas, plus others and in 2018 we launched our first new men’s
line, Rochas Moustache. Byzance debuted in early 2020 and
Rochas Girl in 2021, and the first flanker for both will come to
market in 2022 as well as one for L’Homme Rochas.
the products
51
Rochas Eau de Rochas
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 52
In October 2021, we closed on a transaction agreement with
Salvatore Ferragamo S.p.A., whereby an exclusive and world-
wide 10-year license was granted for the production and dis-
tribution of Ferragamo brand perfumes, with a 5-year optional
term if certain conditions are met. Salvatore Ferragamo S.p.A.
is the parent company of the Salvatore Ferragamo Group,
one of the world’s leaders in the luxury industry and whose
origins date back to 1927. Named after its founder, the brand
still represents and lives by the original values of Salvatore
Ferragamo. The uniqueness and exclusivity of its creations,
along with the perfect blend of style, creativity and innova-
tion enriched by the quality and superior craftsmanship of
the ‘Made in Italy’ tradition, have always been the hallmarks
of Salvatore Ferragamo’s products notably shoes, leather
goods, apparel, silk products and other accessories for men
and women.
The current fragrance lineup includes Storie di Seta, a new
collection of four refined, luminous olfactory works of art.
Each fragrance is made with rare, sustainable raw materials,
and can be worn alone or in combination, creating a person-
alized multifaceted scent. The genderless collection is com-
prised of four fragrances in four colors. Four exclusive motifs
drawn from the House’s textile heritage adorn each flacon.
Established scents in the Ferragamo portfolio include Ferrag-
amo, a collection of fragrances for men, Signoria, a collection
of fragrances for women, the Tuscan Creations series, the
Amo series and the Uomo series.
the products
53
Salvatore Ferragamo Giardini di Seta
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 54
Van Cleef & Arpels fragrances in current distribution include:
First and Collection Extraordinaire. Sales of the Collection
Extraordinaire line have experienced continued growth since
its debut. We continue to introduce new additions to the Van
Cleef & Arpels Collection Extraordinaire assortment an-
nually, including Oud Blanc, in 2020 and Rêve de Matière in
2021. Patchouli Blanc is the new addition to the Collection
Extraordinaire, scheduled for 2022. Founded in 1896, Van
Cleef & Arpels is a French luxury jewelry company owned by
Richemont Holdings Limited.
the products
55
CE_PatchouliBlanc_POS_135_160,5x218.indd 1
CE_PatchouliBlanc_POS_135_160,5x218.indd 1
Van Cleef & Arpels Collection Extraordinaire, Patchouli Blanc
23/03/2022 13:36
23/03/2022 13:36
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 56
40%
CONSOLIDATED NET SALES TO CUSTOMERS BY REGION
(in millions)
Year Ended December 31,
North America
Western Europe
Asia
Eastern Europe
Middle East
Central and
South America
Other
2021
$354.1
202.0
128.0
69.7
61.0
2020
$193.5
147.1
79.7
33.1
46.8
2019
$235.5
185.5
110.9
55.2
72.6
32.5
56.4
8.4
46.2
7.6
$879.6 $539.0 $713.5
6.3
CONSOLIDATED NET SALES TO CUSTOMERS
IN MAJOR COUNTRIES ARE AS FOLLOWS:
(in thousands)
Year Ended December 31,
United States
France
Russia
United Kingdom
2021
$351,300
44,000
43,400
38,500
2020
$187,300
37,600
14,100
24,600
2019
$225,300
43,500
36,800
35,800
57
31%
7%
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 58
The
Organization
All Corporate Functions:
Including product analysis and development, production and
sales, and finance are coordinated at the Company’s corpo-
rate headquarters in New York and at the corporate offices
of Interparfums SA in Paris. Each company is organized into
two operational units that report directly to general man-
agement, and European operations ultimately report to
Mr. Benacin and United States operations ultimately report to
Mr. Madar.
Finance, Investor Relations
And Administration:
Russell Greenberg in the United States and Philippe Santi
in France:
• Financial policy and communication, investor relations;
• Financial accounting, cost accounting, budgeting and
cash flow management;
• Disclosure requirements of the Securities and Exchange
Commission and Commission des Operations de Bourse;
• Labor relations, tax and legal matters and management
information systems.
Operations:
Franck Moisio in the United States and Axel Marot in France:
• Product development;
• Logistics and transportation;
• Purchasing and industrial relations;
• Quality control and inventory cost supervision.
Export Sales:
Hervé Bouillonnec in the United States and Frédéric Garcia-
Pelayo in France:
• International development strategy;
• Establishment of distributor networks and negotiation
of contracts;
• Monitoring of profit margins and advertising expenditures.
Domestic (Home Country) Sales:
Hervé Bouillonnec in the United States and Jérôme Thermoz in
France:
• Establish and apply domestic sales strategy and
distribution policy;
• Sales team management and development;
• Monitoring of profit margins and advertising expenditures.
.
the organization
59
SIMPLIFIED CHART OF THE ORGANIZATION
44%
PHILIPPE BENACIN
JEAN MADAR
56%
PUBLIC
SHAREHOLDERS
100%
100%
100%
INTER PARFUMS
HOLDINGS, SA
INTER PARFUMS
USA, LLC
INTER PARFUMS
ITALIA SRL
73%
100%
INTERPARFUMS SA
[ EURONEXT -
PARIS ]
INTER PARFUMS
USA
HONG KONG LTD
rpar
srl
(italy)
fums
100%
100%
100%
51%
INTERPARFUMS
LUXURY BRANDS,
INC
INTERPARFUMS
[ SUISSE ] SARL
INTERPARFUMS
SINGAPORE PTE,
LTD
PARFUMS ROCHAS
SPAIN, SL
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 60
contents
management’s discussion and analysis of financial
condition and results of operations
report on internal control
over financial reporting
report of independent registered
public accounting firm
financial statements
61
71
72
74
notes to consolidated financial statements
corporate and market information
directors and executive officers
79
95
96
management’s discussion and analysis
of financial condition and results of operations
61
Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta
and Ungaro brands.
Substantially all of our prestige fragrance brands are licensed
from unaffiliated third parties, and our business is dependent
upon the continuation and renewal of such licenses. With respect
to the Company’s largest brands, we license the Montblanc, Jim-
my Choo, Coach and GUESS brand names.
As a percentage of net sales, product sales for the Company’s
largest brands were as follows:
Management’s Discussion
And Analysis Of
Financial Condition And
Results Of
Operations
OVERVIEW
Years ended December 31, 2021 2020 2019
22%
Montblanc
19%
18%
16%
12%
21%
16%
17%
11%
16%
14%
10%
Jimmy Choo
Coach
GUESS
Quarterly sales fluctuations are influenced by the timing of
new product launches as well as the third and fourth quarter
holiday season. In certain markets where we sell directly to
retailers, seasonality is more evident. We primarily sell direct-
ly to retailers in France and the United States.
We grow our business in two distinct ways. First, we grow by
We operate in the fragrance business, and manufacture, mar-
adding new brands to our portfolio, either through new licens-
ket and distribute a wide array of fragrances and fragrance
es or other arrangements or out-right acquisitions of brands.
related products. We manage our business in two segments,
Second, we grow through the introduction of new products and
European based operations and United States based opera-
by supporting new and established products through adver-
tions. Certain prestige fragrance products are produced and
tising, merchandising and sampling, as well as by phasing out
marketed by our European operations through our 73% owned
underperforming products, so we can devote greater resourc-
subsidiary in Paris, Interparfums SA, which is also a publicly
es to those products with greater potential. The economics of
traded company as 27% of Interparfums SA shares trade on
developing, producing, launching and supporting products in-
the NYSE Euronext.
fluence our sales and operating performance each year. The
We produce and distribute our European based fragrance
introduction of new products may have some cannibalizing ef-
products primarily under license agreements with brand own-
fect on sales of existing products, which we take into account
ers, and European based fragrance product sales represented
in our business planning.
approximately 75%, 78% and 76% of net sales for 2021, 2020
Our business is not capital intensive, and it is important to
and 2019, respectively. We have built a portfolio of prestige
note that we do not own manufacturing facilities. We act as a
brands, which include Boucheron, Coach, Jimmy Choo, Karl
general contractor and source our needed components from
Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas,
our suppliers. These components are received at one of our
S.T. Dupont and Van Cleef & Arpels, whose products are dis-
distribution centers and then, based upon production needs,
tributed in over 120 countries around the world.
the components are sent to one of several third party fillers,
Through our United States operations, we also market fra-
which manufacture the finished product for us and then deliver
grance and fragrance related products. United States oper-
them to one of our distribution centers.
ations represented 25%, 22% and 24% of net sales in 2021,
As with any global business, many aspects of our op-
2020 and 2019, respectively. These fragrance products are
erations are subject to influences outside our control. We
sold primarily pursuant to license or other agreements with
believe we have a strong brand portfolio with global reach
the owners of the Abercrombie & Fitch, Anna Sui, Dunhill,
and potential. As part of our strategy, we plan to continue to
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
62
make investments behind fast-growing markets and chan-
Lastly, the improved economy has put significant strains on
nels to grow market share.
our supply chain causing disruptions affecting the procure-
Our reported net sales are impacted by changes in foreign
ment of components, the ability to transport goods, and re-
currency exchange rates. A strong U.S. dollar has a negative
lated cost increases. These disruptions have come at a time
impact on our net sales. However, earnings are positively af-
when demand for our product lines has never been stronger
fected by a strong dollar, because over 50% of net sales of our
or more sustained. We have been addressing this issue since
European operations are denominated in U.S. dollars, while
the beginning of 2021, by ordering well in advance of need and
almost all costs of our European operations are incurred in
in larger quantities. Going forward, we aim to carry more in-
euro. Conversely, a weak U.S. dollar has a favorable impact on
ventory overall, source the same components from multiple
our net sales while gross margins are negatively affected. We
suppliers and when possible, manufacture products closer to
address certain financial exposures through a controlled pro-
where they are sold. We do not expect the supply chain bot-
gram of risk management that includes the use of derivative
tlenecks to begin lifting until later in 2022. Therefore, despite
financial instruments, and primarily enter into foreign curren-
recent business improvement, the impact of the COVID-19 pan-
cy forward exchange contracts to reduce the effects of fluctu-
demic may have a material adverse effect on our results of our
ating foreign currency exchange rates.
operations, financial position and cash flows through at least
IMPACT OF COVID-19 PANDEMIC
the end of 2022.
A novel strain of coronavirus (“COVID-19”) surfaced in late 2019
and has spread around the world, including to the United States
and France. In March 2020, the World Health Organization de-
RECENT IMPORTANT EVENTS
Salvatore Ferragamo
In October 2021, we closed on a transaction agreement
clared COVID-19 a pandemic.
with Salvatore Ferragamo S.p.A., whereby an exclusive and
In response to the COVID-19 pandemic various national,
worldwide license was granted for the production and distri-
state, and local governments where we, our suppliers, and our
bution of Ferragamo brand perfumes. Our rights under this
customers operate initially issued decrees prohibiting certain
license are subject to certain minimum advertising expendi-
businesses from continuing to operate and certain classes of
tures and royalty payments as are customary in our industry.
workers from reporting to work. In all jurisdictions in which we
The license became effective in October 2021 and will last
operate, we have been following guidance from authorities and
for 10 years with a 5-year optional term, subject to certain
health officials.
conditions.
The effects of the COVID-19 pandemic on the beauty indus-
With respect to the management and coordination of activ-
try began in early March 2020. Retail store closings, event can-
ities related to the license agreement, the Company operates
cellations and a shutdown of international air travel brought
through a wholly-owned Italian subsidiary based in Florence,
our sales to a virtual standstill and caused a significant unfa-
that was acquired from Salvatore Ferragamo on October 1,
vorable impact on our results of operations in 2020.
2021. The acquisition together with the license agreement
Business significantly improved in the second half of 2020
was accounted for as an asset acquisition. The following table
and continued to improve throughout 2021, as retail stores re-
summarizes the estimated fair values of the assets acquired
opened, and consumers increased online purchasing. While we
and liabilities assumed on October 1, 2021. All amounts have
expect this trend to continue, as the luxury fragrance industry
been translated to U.S. dollars at the October 1, 2021 ex-
has shown continued resilience, the introduction of variants of
change rate.
COVID-19 in various parts of the world has caused the tempo-
rary re-implementation of governmental restrictions to pre-
$ in thousands
vent further spread of the virus. In addition, international air
Inventories
travel has remained curtailed in many jurisdictions due to both
Trademarks and licenses
governmental restrictions and consumer health concerns.
Other assets
While COVID-19 has significantly restricted international travel
Assets acquired
in the near-term, we continue to believe that global travel re-
Liabilities assumed
tail will once again be a growth opportunity for the long-term.
$17,805
$15,880
$3,033
36,718
(958)
$35,760
management’s discussion and analysis
of financial condition and results of operations
63
Emanuel Ungaro
In October 2021, we also entered into a 10-year exclusive glob-
al licensing agreement a with a 5-year optional term subject
office complex combining three buildings connected by two inner
courtyards, and consists of approximately 40,000 total sq. ft.
The $142 million purchase price includes the complete ren-
to certain conditions, with Emanuel Ungaro Italia S.r.l, for the
ovation of the site. As of December 31, 2021, $136.1 million of
creation, development and distribution of fragrances and fra-
the purchase price, including approximately $3.1 million of ac-
grance-related products, under the Emanuel Ungaro brand.
quisition costs, is included in property, equipment and lease-
Our rights under this license are subject to certain minimum
hold improvements on the accompanying balance sheet as of
advertising expenditures and royalty payments as are cus-
December 31, 2021. Approximately $8.8 million of cash held in
tomary in our industry.
escrow is included in other assets on the accompanying bal-
Donna Karan and DKNY
In September 2021, we entered into a long-term global licens-
borrowed $17.0 million pursuant to a short-term loan equal to
the VAT credit, and in July 2021, the $17.0 million VAT credit
ing agreement for the creation, development and distribution of
was reimbursed by the French Tax Authorities and the loan
ance sheet as of December 31, 2021. In addition, the Company
fragrances and fragrance-related products under the Donna
was repaid.
Karan and DKNY brands. Our rights under this license are sub-
The acquisition was financed by a 10-year €120 million (ap-
ject to certain minimum advertising expenditures and royalty
proximately $136 million) bank loan which bears interest at
payments as are customary in our industry. With this agree-
one-month Euribor plus 0.75%. Approximately €80 million of
ment, we are gaining several well-established and valuable fra-
the variable rate debt was swapped for variable interest rate
grance franchises, most notably Donna Karan Cashmere Mist
debt with a maximum rate of 2% per annum.
and DKNY Be Delicious, as well as a significant loyal consumer
base around the world. In connection with the grant of license,
we issued 65,342 shares of Inter Parfums, Inc. common stock
Anna Sui Corp.
In January 2021, we renewed our license agreement with Anna
valued at $5.0 million to the licensor. The exclusive license is
Sui Corp. for the creation, development and distribution of
effective July 1, 2022, and we are planning to launch new fra-
fragrance products through December 31, 2026, without any
grances under these brands in 2023.
material changes in terms and conditions. Our initial 10-year
French Tax Settlement
The French authorities had considered that the existence of IP
Suisse, a wholly-owned subsidiary of Interparfums SA, does
not, in and of itself, constitute a permanent establishment and
therefore Interparfums SA should pay French taxes on all or
license agreement with Anna Sui Corp. was signed in 2011. The
renewal agreement also allows for an additional 5-year term
through 2031 at the option of the Company.
Rochas Fashion
Effective January 1, 2021, we entered into a new license
part of the profits of that entity.
agreement modifying our Rochas fashion business model.
In June 2021, a global settlement agreement was reached
The new agreement calls for a reduction in royalties to be re-
with the French Tax Authorities, whereby Interparfums SA paid
ceived. As a result, in the first quarter of 2021, we took a $2.4
in December 2021, €2.5 million (approximately $2.9 million)
million impairment charge on our Rochas fashion trademark.
effectively lowering the Lanvin brand royalty rate charged by
The new license also contains an option for the licensee to
IP Suisse for the periods from 2017 through 2020. Interpar-
buy-out the Rochas fashion trademarks in June 2025 at its
fums SA also agreed to apply the lower rate in 2021 through
then fair market value.
2025 and to transfer the Lanvin brand from IP Suisse to Inter-
parfums SA by December 31, 2025.
S.T. Dupont
In January 2021, we renewed our license agreement with S.T.
Land and Building Acquisition
- Future Headquarters in Paris
In April 2021, Interparfums SA, completed the acquisition
Dupont for the creation, development and distribution of fra-
grance products through December 31, 2022, without any mate-
rial changes in terms and conditions. Our initial 11-year license
of its future headquarters at 10 rue de Solférino in the 7th ar-
agreement with S.T. Dupont was signed in June 1997 and had
rondissement of Paris from the property developer. This is an
previously been extended through December 31, 2021.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
64
DISCUSSION OF CRITICAL ACCOUNTING POLICIES
We make estimates and assumptions in the preparation of
our financial statements in conformity with accounting prin-
Increase
(decrease)
$ in millions Change to fair value
ciples generally accepted in the United States of America.
Weighted average cost of capital
Actual results could differ significantly from those estimates
Weighted average cost of capital
under different assumptions and conditions. We believe the
Future sales levels
following discussion addresses our most critical account-
Future sales levels
ing policies, which are those that are most important to the
+10%
-10%
+10%
-10%
$(11.9)
$14.0
$13.3
$(13.3)
portrayal of our financial condition and results of operations.
Intangible assets subject to amortization are evaluated for
These accounting policies generally require our manage-
impairment testing whenever events or changes in circum-
ment’s most difficult and subjective judgments, often as a re-
stances indicate that the carrying amount of an amortizable
sult of the need to make estimates about the effect of matters
intangible asset may not be recoverable. If impairment indica-
that are inherently uncertain. Management of the Company
tors exist for an amortizable intangible asset, the undiscount-
has discussed the selection of significant accounting policies
ed future cash flows associated with the expected service
and the effect of estimates with the Audit Committee of the
potential of the asset are compared to the carrying value of
Board of Directors.
Long-Lived Assets
We evaluate indefinite-lived intangible assets for impairment
the asset. If our projection of undiscounted future cash flows
is in excess of the carrying value of the intangible asset, no im-
pairment charge is recorded. If our projection of undiscounted
future cash flows is less than the carrying value of the intangi-
at least annually during the fourth quarter, or more frequently
ble asset, an impairment charge would be recorded to reduce
when events occur or circumstances change, such as an un-
the intangible asset to its fair value. The cash flow projections
expected decline in sales, that would more likely than not in-
are based upon a number of assumptions, including future
dicate that the carrying value of an indefinite-lived intangible
sales levels and future cost of goods and operating expense
asset may not be recoverable. When testing indefinite-lived in-
levels, as well as economic conditions, changes to our busi-
tangible assets for impairment, the evaluation requires a com-
ness model or changes in consumer acceptance of our prod-
parison of the estimated fair value of the asset to the carrying
ucts which are more subjective in nature. In those cases where
value of the asset. The fair values used in our evaluations are
we determine that the useful life of long-lived assets should
estimated based upon discounted future cash flow projections
be shortened, we would amortize the net book value in excess
using a weighted average cost of capital of 7.47%. The cash
of the salvage value (after testing for impairment as described
flow projections are based upon a number of assumptions, in-
above), over the revised remaining useful life of such asset
cluding, future sales levels and future cost of goods and oper-
thereby increasing amortization expense. We believe that the
ating expense levels, as well as economic conditions, changes
assumptions we have made in projecting future cash flows for
to our business model or changes in consumer acceptance of
the evaluations described above are reasonable.
our products which are more subjective in nature. If the carry-
In determining the useful life of our Lanvin brand names and
ing value of an indefinite-lived intangible asset exceeds its fair
trademarks, we applied the provisions of ASC topic 350-30-35-
value, an impairment charge is recorded
3. The only factor that prevented us from determining that the
We believe that the assumptions we have made in project-
Lanvin brand names and trademarks were indefinite life intan-
ing future cash flows for the evaluations described above are
gible assets was Item c. “Any legal, regulatory, or contractual
reasonable. However, if future actual results do not meet our
provisions that may limit the useful life.” The existence of a re-
expectations, we may be required to record an impairment
purchase option originally in 2025 and amended to 2027, may
charge, the amount of which could be material to our results
limit the useful life of the Lanvin brand names and trademarks
of operations.
to the Company. However, this limitation would only take effect if
At December 31, 2021 indefinite-lived intangible assets ag-
the repurchase option were to be exercised and the repurchase
gregated $119.7 million. The following table presents the im-
price was paid. If the repurchase option is not exercised, then
pact a change in the following significant assumptions would
the Lanvin brand names and trademarks are expected to contin-
have had on the calculated fair value in 2021 assuming all oth-
ue to contribute directly to the future cash flows of our Company
er assumptions remained constant:
and their useful life would be considered to be indefinite.
management’s discussion and analysis
of financial condition and results of operations
65
With respect to the application of ASC topic 350-30-35-8, the Lanvin brand names and trademarks would only have a finite life to
our Company if the repurchase option were exercised, and in applying ASC topic 350-30-35-8, we assumed that the repurchase option
is exercised. When exercised, Lanvin has an obligation to pay the exercise price and the Company would be required to convey the
Lanvin brand names and trademarks back to Lanvin. The exercise price to be received (residual value) is well in excess of the carrying
value of the Lanvin brand names and trademarks, therefore no amortization is required.
RESULTS OF OPERATIONS
Net Sales
(in millions)
Years Ended December 31,
European-based product sales
United States-based product sales
Total net sales
2021
$663.2
216.4
$879.6
% Change
57%
86%
63%
2020
$422.9
116.1
$539.0
% Change
(22)%
(32)%
(24)%
2019
$542.1
171.4
$713.5
Net sales rebounded significantly in 2021, as compared to 2020 for both European and United States based operations. Even more
gratifying, 2021 net sales for European based operations and United States based operations increased 22% and 26%, respectively,
as compared to 2019. At comparable foreign currency exchange rates, net sales increased 62% in 2021, as compared to 2020 and
decreased 26 % in 2020, as compared to 2019. Net sales in 2020 reflected the negative impacts of the COVID-19 pandemic on the
beauty industry. Retail store closings, event cancellations and a shutdown of international air travel brought our sales to a virtual
standstill in early 2020. In the second half of 2020, business began rebounding thanks to retail stores reopening and a robust
e-commerce business conducted by our retail customers. However, international travel has remained largely curtailed globally
due to both government restrictions and consumer health concerns that continue to adversely impact consumer traffic in most
travel retail locations. As 2020 was an outlier for our sales due to the COVID-19 pandemic and its effects as discussed above, below
are sales comparisons for our largest brands in 2021 with 2019.
For European based operations, our largest brands, Montblanc, Jimmy Choo and Coach grew 2021 sales by 7%, 34% and 41%,
respectively, as compared to 2019. There were also significant gains made by our mid-sized brands, including Van Cleef & Arpels
and Karl Lagerfeld. We also welcomed first time sales by our newest brands, notably Kate Spade and Moncler.
In 2021, GUESS became our fourth brand with sales exceeding $100 million. GUESS brand sales increased 41% in 2021, as com-
pared to 2019, contributing to the overall increase in 2021 net sales within U.S. based operations. There were also significant gains
made by our mid-sized brands, especially Abercrombie & Fitch, Hollister and Oscar de la Renta. We also welcomed first time sales
by our newest brands, MCM and Ferragamo.
A more detailed discussion relating to our sales for 2020 as compared to 2019 can be found in “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our annual report on Form 10-K for the year ended
December 2020.
We are confident in our future as 2022 has begun on a strong note. We have completed the integration of the Ferragamo and
Ungaro brands and our new Italian subsidiary is now staffed and fully operational. We have a solid line-up of new product launches
in the pipeline for many of our other brands. This includes the roll out of the first Moncler fragrance line in a series of selective
points of sale that faithfully respect the brand’s image. An entirely new men’s collection for GUESS is scheduled for introduction
in the spring. Extensions of the Montblanc Legend, Jimmy Choo Man and Jimmy Choo’s I Want Choo, debut in the first, second and
third quarters, respectively. Also, in the third quarter, we will unveil new men’s lines for Coach and Boucheron. Brand extensions
and flankers are in the works for MCM, Abercrombie & Fitch, Hollister, Anna Sui, and Oscar de la Renta. In addition, we will be add-
ing the Donna Karan and DKNY fragrance brands to our portfolio come this summer. In sum, 2022 has all the earmarks of another
superb year as the growth catalysts currently far outweigh the headwinds, most notably limited travel retail business and supply
chain disruptions.
As in the past, we hope to benefit from our strong financial position to potentially acquire one or more brands, either on a propri-
etary basis or as a licensee. However, we cannot assure you that any new license or acquisition agreements will be consummated,
or acquisition agreements will be consummated.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 66
Net Sales to Customers by Region
(in millions)
Years ended December 31, 2021
North America
$354.1
Western Europe
202.0
128.0
Asia
69.7
61.0
56.4
8.4
$879.6
Central & South America
Eastern Europe
Middle East
Other
2020
$193.5
147.1
79.7
33.1
46.8
32.5
6.3
$539.0
For European based operations, gross profit margin as a
percentage of net sales was 66.6%, 64.0% and 65.7% in 2021,
2020 and 2019, respectively. Distribution in the United States
for European based operations is handled by a 100% owned
subsidiary of Interparfums SA. Therefore, sales are made at
a wholesale price rather than at an ex-factory price, result-
ing in higher gross margins. Net sales of our U.S. distribution
subsidiary increased 86% in 2021, as compared to 2020, giv-
ing rise to the increase in gross margin in 2021 over both 2020
and 2019. We carefully monitor movements in foreign curren-
2019
$235.5
185.5
110.9
55.2
72.6
46.2
7.6
$713.5
cy exchange rates as over 50% of our European based opera-
tions net sales is denominated in U.S. dollars, while most of
As we did with sales for our largest brands, we are discussing
our costs are incurred in euro. From a margin standpoint, a
net sales to customers by region using comparisons in 2021
strong U.S. dollar has a positive effect on our gross margin
with 2019, as the result of the effects of the COVID-19 pandem-
while a weak U.S. dollar has a negative effect. The average
ic in 2020. Our largest market, North America achieved sales
dollar/euro exchange rate was 1.18 in 2021, 1.15 in 2020, and
growth of 50% in 2021 compared to 2019, while Western Europe
1.12 in 2019. The weaker dollar in 2021 partially mitigated the
and Asia grew sales by 9% and 15% in 2021, respectively, com-
increase in margin referred to above and resulted in a small
pared to 2019. Latin America and Eastern Europe also achieved
decline in our gross margins in 2020. Gross margin in 2020
top line growth of 22% and 26% in 2021, respectively, and only
for European operations also included a charge of approxi-
the Middle East had a decline in sales compared to 2019. As of
mately $2.0 million relating to the assumption of a return
the date of this report, international travel has remained largely
liability for products sold by the former licensee of a brand
curtailed globally due to both government restrictions and con-
license acquired in 2019.
sumer health concerns that continue to adversely impact con-
For United States operations, gross profit margin was
sumer traffic in most travel retail locations.
53.1%, 51.8% and 52.5% in 2021, 2020 and 2019, respectively.
The impact of the COVID-19 pandemic broadly impacted all
With a decline in sales in 2020, certain expenses such as de-
regions in 2020, with the steepest declines in the Middle East
preciation of tools and molds together with the distribution of
and Eastern Europe. Travel retail accounted for much of the
point-of-sale materials exaggerated the decline in gross mar-
decline in the Middle East and Asian markets.
gin for the year as a percentage of sales. With U.S. based oper-
Gross Margins
(in millions)
Years ended December 31, 2021
European Operations
Net sales
Cost of sales
Gross margin
Gross margin as
ations net sales up 86% in 2021, as compared to 2020, no such
effect was seen in 2021.
2020
2019
chase promotions are reflected in cost of sales, and aggregat-
Costs relating to purchase with purchase and gift with pur-
$663.2
221.2
$442.0
$422.9
152.3
$270.6
$542.1
186.2
$355.9
ed $37.6 million, $26.4 million and $38.9 million in 2021, 2020
and 2019, respectively, and represented 4.3%, 4.9% and 5.5%
of net sales, respectively.
Generally, we do not bill customers for shipping and han-
dling costs and such costs, which aggregated $10.1 million,
a percent of net sales 66.7%
64.0%
65.7%
$5.0 million and $7.7 million in 2021, 2020 and 2019, respec-
tively, are included in selling, general and administrative ex-
United States Operations
penses in the consolidated statements of income. As such,
Net sales
Cost of sales
Gross margin
Gross margin as
$216.3
101.4
$114.9
$116.1
56.0
$60.1
$171.4
81.4
$90.0
our Company’s gross margins may not be comparable to oth-
er companies, which may include these expenses as a com-
ponent of cost of goods sold.
a percent of net sales
53.1%
51.8%
52.5%
management’s discussion and analysis
of financial condition and results of operations
67
Selling, General & Administrative Expenses
(in millions)
effect was realized, and we were able to achieve significant
leverage on fixed costs during the year.
Years ended December 31,
European Operations
Selling, general
2021
2020
2019
Promotion and advertising included in selling, general and
administrative expenses aggregated $171.8 million, $91.7 mil-
lion and $144.6 million in 2021, 2020 and 2019, respectively.
& administrative expenses $327.5 $210.6 $275.3
Promotion and advertising as a percentage of sales repre-
Selling, general
sented 19.5%, 17.0% and 20.3% of net sales in 2021, 2020 and
& administrative expenses
2019, respectively. Promotion and advertising programs were
as a percent of net sales 49.4% 49.8% 50.8%
cut significantly in 2020 in response to market conditions.
United States Operations
Selling, general
Throughout 2021, sales rebounded far more rapidly than an-
ticipated causing us to play catchup with promotional and
adverting programs and missing our target spend of 21% of
& administrative expenses
$79.0
$50.1
$65.9
annual sales. Promotion and advertising are integral parts
Selling, general
of our industry, and we continue to invest heavily in promo-
& administrative expenses
tional spending to support new product launches and to build
as a percent of net sales 36.5% 43.1% 38.5%
brand awareness. We believe that our promotion and adver-
tising efforts have had a beneficial effect on online net sales,
For European operations, selling, general and administrative
causing then to continue to grow strongly on a global basis.
expenses increased 55.5% in 2021 and declined 23.6% in 2020,
All of our brands have benefitted from newly launched and en-
as compared to the corresponding prior year period, and rep-
hanced e-commerce sites in existing markets in collaboration
resented 49.4%, 49.8% and 50.8% of sales in 2021, 2020 and
with our retail customers on their e-commerce sites. We also
2019, respectively. As discussed in more detail below, the
continue to develop and implement omnichannel concepts,
fluctuations which are in line with the fluctuations in sales for
the way brick-and-mortar stores and a business’ online oper-
European operations, are primarily from variations in promo-
ations work in tandem, and compelling content to deliver an
tion and advertising expenditures.
integrated consumer experience. We anticipated that on a full
Our operating cost structure, of which variable costs typi-
year basis, future promotion and advertising expenditures will
cally account for over two-thirds, had enabled us to minimize
aggregate approximately 21% of net sales, which is in line with
the impact of reduced net sales on our bottom line. Due to
historical averages.
the effects of the COVID-19 pandemic, a substantial portion of
Royalty expense included in selling, general and administra-
the reduction in selling, general and administrative expenses
tive expenses aggregated $69.0 million, $41.1 million and $53.0
in 2020 were attributable to the postponement of advertising
million in 2021, 2020 and 2019, respectively. Royalty expense
and promotional expenses to 2021, as nearly all major new
as a percentage of sales represented 7.8%, 7.6% and 7.4% of
product launches were postponed until 2021. In addition, we
net sales in 2021, 2020 and 2019, respectively. The increases in
also undertook several actions with an eye toward minimizing
2021 and 2020, as a percentage of sales, are directly related to
fixed expenses.
new licenses and increased royalty-based product sales. As a
For United States operations, selling, general and adminis-
result of the COVID-19 pandemic, we reached agreements with
trative expenses increased 57.8% in 2021 and decreased 24.1%
most of our licensors to waive or significantly reduce minimum
in 2020, as compared to the corresponding prior year period
guaranteed royalties for 2020.
and represented 36.5%, 43.1% and 38.5% of sales in 2021, 2020
Service fees, which are fees paid within our European oper-
and 2019, respectively. Our U.S. operations are significantly
ations to third parties relating to the activities of our distribu-
smaller than those of our European operations and carry high-
tion subsidiaries, aggregated $9.4 million, $6.8 million and $7.5
er fixed costs that could not be leveraged as efficiently as those
million in 2021, 2020 and 2019, respectively. The 2021 and 2020
of our European operations with the decline in 2020 net sales.
amounts are in line with and directly related to fluctuations in
However, with an 86% increase in 2021 net sales, the opposite
sales within our U.S. distribution subsidiary.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
68
Income from Operations
As a result of the above analysis regarding net sales, gross
Income tax expense represents U.S. federal, foreign, state
and local income taxes. The effective rate differs from the
profit margins and selling, general and administrative ex-
federal statutory rate primarily due to the effect of state and
penses, our operating margins aggregated 16.8%, 13.1% and
local income taxes, the tax impact of share-based compensa-
14.7% for the years ended December 31, 2021, 2020 and 2019,
tion and the taxation of foreign income including tax settle-
respectively. Lower than expected promotion and adverting
ments. Our effective tax rate will change from year-to-year
expense drove the increase in our operating margin in 2021,
based on recurring and non-recurring factors including the
while strong cost controls in 2020 enabled us to minimize
geographical mix of earnings, enacted tax legislation, state
the impact of the sudden drop in sales resulting from the
and local income taxes, the tax impact of share-based com-
COVID-19 pandemic.
pensation, the interaction of various global tax strategies and
the impact from certain acquisitions.
Other Income and Expenses
Traditionally, interest expense was primarily related to the
Our effective income tax rate for European operations was
30.6%, 29.7% and 30.7% in 2021, 2020 and 2019, respectively.
financing of brand and licensing acquisitions. However, in
The French authorities had considered that the existence
April 2021, we completed the acquisition of the future head-
of IP Suisse, a wholly-owned subsidiar y of Interparfums SA,
quarters of Interparfums SA. The acquisition was financed
does not, in and of itself, constitute a permanent establish-
by a 10-year €120 million (approximately $136 million) bank
ment and therefore Interparfums SA should pay French tax-
loan which bears interest at one-month Euribor plus 0.75%.
es on all or part of the profits of that entity. In June 2021, a
Also in 2021, approximately €80 million of the variable rate
global settlement agreement was reached with the French
debt was swapped for fixed interest rate debt. Long-term
Tax Authorities, whereby Interparfums SA agreed to pay
debt including current maturities aggregated $148.8 million,
€2.5 million (approximately $3.0 million) effectively lower-
$24.7 million and $23.1 million as of December 31, 2021,
ing the Lanvin brand royalty rate charged by IP Suisse for
2020 and 2019, respectively.
the periods from 2017 through 2020. Interparfums SA also
We enter into foreign currency for ward exchange con-
agreed to apply the lower rate in 2021 through 2025 and to
tracts to manage exposure related to receivables from un-
transfer the Lanvin brand from IP Suisse to Interparfums SA
affiliated third par ties denominated in a foreign currency
by December 31, 2025.
and occasionally to manage risks related to future sales
In addition, pursuant to an action plan released by the
expected to be denominated in a foreign currency. Gains
French Prime Minister, beginning in 2020, the French corpo-
and losses on foreign currency transactions have not been
rate income tax rate is expected to be cut from approximately
significant.
33% to 25% over a three-year period.
Interest and dividend income represents interest earned
Our effective income tax rate for U.S. operations was 15.6%,
on cash and cash equivalents and short-term investments.
16.7% and 17.0% in 2021, 2020 and 2019, respectively.
In 2021, short-term investments include approximately $24.5
The Company has determined that it has no tax liability
million of marketable equity securities of other companies in
related global intangible low-taxed income (“GILTI”) as of De-
the luxury goods sector. Interest and dividend income includes
cember 31, 2021, 2020 and 2019. The Company also estimated
approximately $1.8 million of unrealized gains on marketable
the effect of its foreign derived intangible income (“FDII”) and
equity securities.
recorded a tax benefit of $0.6 million, $0.3 million and $0.9
million as of December 31, 2021, 2020 and 2019, respectively.
Income Taxes
Our effective income tax rate was 27.1%, 27.9% and 27.7% in
Share-based compensation resulted in a discrete tax benefit
of $1.3 million, $0.4 million and $0.7 million in 2021, 2020 and
2021, 2020 and 2019, respectively.
2019, respectively.
management’s discussion and analysis
of financial condition and results of operations
69
Net Income
(In thousands, except share and per share data)
Years ended December, 31
Net income attributable to European operations
Net income attributable to United States operations
Net income
Less: Net income attributable to the noncontrolling interest
Net income attributable to Inter Parfums, Inc.
2021
$80,670
29,357
110,027
22,616
$87,411
2020
$41,990
7,978
49,968
11,749
$38,219
2019
$56,660
19,410
76,070
15,821
$60,249
Net income attributable to European operations was $80.7 million, $42.0 million and $56.7 million in 2021, 2020 and 2019, respec-
tively, while net income attributable to United States operations was $29.4 million, $8.0 million and $19.4 million in 2021, 2020 and
2019, respectively. The fluctuations in net income for both European operations and United States operations are directly related to
the previous discussions concerning changes in sales, gross profit margins, selling, general and administrative expenses, most of
which were caused by the effects of the COVID-19 pandemic beginning in 2020 and the recovery in 2021.
The noncontrolling interest arises primarily from our 73% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded
company as 27% of Interparfums SA shares trade on the NYSE Euronext. Net income attributable to the noncontrolling interest is di-
rectly related to the profitability of our European operations and aggregated 28.0% of European operations net income in 2021 and 28.1%
in 2020 and 2019. Net margins attributable to Inter Parfums, Inc. aggregated 9.9%, 7.1% and 8.4% in 2021, 2020 and 2019, respectively.
liQuidity and capital resources
Our conservative financial tradition has enabled us to amass significant cash balances. As of December 31, 2021, we had $320
million in cash, cash equivalents and short-term investments, most of which are held in euro by our European operations and are
readily convertible into U.S. dollars. We have not had any liquidity issues to date, and do not expect any liquidity issues relating to
such cash and cash equivalents and short-term investments. As of December 31, 2021, short-term investments include approxi-
mately $24.5 million of marketable equity securities.
As of December 31, 2021, working capital aggregated $465 million, and we had a working capital ratio of 2.9 to 1. Approximately
82% of the Company’s total assets are held by European operations including approximately $171 million of trademarks, licenses
and other intangible assets.
The Company is party to a number of license and other agreements for the use of trademarks and rights in connection with
the manufacture and sale of its products expiring at various dates through 2033. In connection with certain of these license
agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other com-
mitments. See Item 8. Financial Statements and Supplementary Data – Note 12 – Commitments in this annual report on Form
10-K. Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at
December 31, 2021, without consideration for potential renewal periods and do not reflect the fact that our distributors share
our advertising obligations.
The Company hopes to continue to benefit from its strong financial position to potentially acquire one or more brands, either on
a proprietary basis or as a licensee. In September 2021, we entered into a long-term global licensing agreement for the creation,
development and distribution of fragrances and fragrance-related products under the Donna Karan and DKNY brands. This new
license takes effect July 1, 2022.
In October 2021, we closed on a transaction agreement with Salvatore Ferragamo S.p.A., whereby an exclusive and worldwide
license was granted for the production and distribution of Ferragamo brand perfumes. The license became effective in October 2021
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
70
management’s discussion and analysis
of financial condition and results of operations
and will last for 10 years with a 5-year optional term, subject
rondissement of Paris from the property developer. This is an
to certain conditions. With respect to the management and
office complex combining three buildings connected by two inner
coordination of activities related to the license agreement, the
courtyards, and consists of approximately 40,000 total sq. ft.
Company is operating through a wholly-owned Italian subsidiary
The $142 million purchase price is in line with market value
based in Florence, that was acquired from Salvatore Ferraga-
and includes the complete renovation of the site. As of Decem-
mo on October 1, 2021. The acquisition together with the license
ber 31, 2021, $136.1 million of the purchase price, including
agreement was accounted for as an asset acquisition. The total
approximately $3.1 million of acquisition costs, is included
cost of the assets acquired net of liabilities assumed aggregated
in building, equipment and leasehold improvements on the
approximately $35.8 million. In connection with this acquisition,
accompanying balance sheet as of December 31, 2021. Ap-
we agreed to pay $17.0 million in equal annual installments of
proximately $8.8 million of cash held in escrow is included in
$1.7 million including interest imputed at 2.0%.
other assets on the accompanying balance sheet as of Decem-
Opportunities for external growth are regularly examined,
ber 31, 2021. In addition, the Company borrowed $17.0 million
with the priority of maintaining the quality and homogeneous na-
pursuant to a short-term loan equal to the VAT credit, and in
ture of our portfolio. However, we cannot assure you that any new
July 2021, the $17.0 million VAT credit was reimbursed by the
license or acquisition agreements will be consummated.
French Tax Authorities and the loan was repaid.
Cash provided by operating activities aggregated $119.6 million,
The acquisition was financed by a 10-year €120 million (ap-
$65.0 million, and $76.5 million in 2021, 2020 and 2019, respective-
proximately $136 million) bank loan which bears interest at
ly. In 2021, working capital items used $13.7 million in cash from
one-month Euribor plus 0.75%. Approximately €80 million of
operating activities, as compared to $7.3 million in 2020 and $16.6
the variable rate debt was swapped for variable interest rate
million in 2019. Although, from a cash flow perspective, accounts
debt with a maximum rate of 2% per annum.
receivable is up approximately 37% from year-end 2020, the bal-
In June 2020, the Company and Divabox, owner of the Orig-
ance is reasonable based upon fourth quarter 2021 record sales
ines-parfums e-commerce platform for beauty products,
levels and reflects strong collection activity as day’s sales out-
signed a strategic agreement and equity investment pursuant
standing decreased to 61 days in 2021, as compared to 86 days and
to which we acquired 25% of Divabox capital for $14 million
69 days in 2020 and 2019, respectively. From a cash flow perspec-
through a capital increase. In connection with the acquisition,
tive, inventory levels are up 31% from year-end 2020. However,
the Company entered into a $13.4 million term loan, which was
inventory days on hand declined significantly to 208 days in 2021,
repaid in full in February 2021.
as compared to 277 days in 2020, and 224 days in 2019. Although in-
Our short-term financing requirements are expected to be
ventories include product needed to support new product launch-
met by available cash on hand at December 31, 2021, cash gen-
es, the overall balance is lower than historic levels due primarily to
erated by operations and short-term credit lines provided by
the aforementioned supply chain disruptions.
domestic and foreign banks. The principal credit facilities for
Cash flows used in investing activities reflect the purchase
2021 consist of a $20.0 million unsecured revolving line of credit
and sales of short-term investments. These investments con-
provided by a domestic commercial bank and approximately $28
sist of certificates of deposit with maturities greater than three
million in credit lines provided by a consortium of international
months marketable equity securities and other contracts. At
financial institutions. There were no balances due from short-
December 31, 2021, approximately $45 million of certificates
term borrowings as of December 31, 2021 and 2020.
of deposit contain penalties where we would forfeit a portion of
In October 2019, our Board authorized a 20% increase in the
the interest earned in the event of early withdrawal.
annual dividend to $1.32 per share. In April 2020, as a result of
Our business is not capital intensive as we do not own any
the uncertainties raised by the COVID-19 pandemic, the Board of
manufacturing facilities. On a full year basis, we generally
Directors authorized a temporary suspension of the quarterly
spend less than $5.0 million on capital expenditures including
cash dividend. In February 2021, our Board of Directors autho-
tools and molds needed to support our new product develop-
rized a reinstatement of an annual dividend of $1.00, payable
ment calendar. Capital expenditures also include amounts for
quarterly and in February 2022, our Board authorized a 100%
office fixtures, computer equipment and industrial equipment
increase in the annual dividend to $2.00 per share. The next
needed at our distribution centers.
quarterly cash dividend of $0.50 per share is payable on March
In April 2021, Interparfums SA completed the acquisition
31, 2022, to shareholders of record on March 15, 2022. Dividends
of its future headquarters at 10 rue de Solférino in the 7th ar-
paid, including dividends paid once per year to noncontrolling
report on internal control
over financial reporting
71
stockholders of Interparfums SA, aggregated $41.5 million,
$21.1 million and $44.2 million for the years ended December
Foreign Exchange Risk Management
A general discussion relating to our policies on foreign ex-
31, 2021, 2020 and 2019, respectively. The cash dividends to be
change risk management can be found in “Management’s
paid in 2022 are not expected to have any significant impact on
Discussion and Analysis of Financial Condition and Results
our financial position.
of Operations” in Part II, Item 7 of our annual report on Form
We believe that funds provided by or used in operations can
10-K for the year ended December 2020.
be supplemented by our present cash position and available
As of December 31, 2021, we had foreign currency con-
credit facilities, so that they will provide us with sufficient re-
tracts in the form of forward exchange contracts with notional
sources to meet all present and reasonably foreseeable future
amounts of approximately U.S. $64.5 million and GB £3.5 mil-
operating needs.
lion which all have maturities of less than one year. We believe
Inflation rates in the U.S. and foreign countries in which we
that our risk of loss as the result of nonperformance by any of
operate did not have a significant impact on operating results
such financial institutions is remote.
for the year ended December 31, 2021.
Quantitative Analysis
During the three-year period ended December 31, 2021, we have
Interest Rate Risk Management
We mitigate interest rate risk by monitoring interest rates,
and then determining whether fixed interest rates should be
not made any material changes in our assumptions underlying
swapped for floating rate debt, or if floating rate debt should be
these critical accounting policies or to the related significant esti-
swapped for fixed rate debt.
mates. The results of our business underlying these assumptions
have not differed significantly from our expectations.
MANAGEMENT’S ANNUAL REPORT
While we believe the estimates we have made are proper and
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
the related results of operations for the period are presented fair-
The management of Inter Parfums, Inc. is responsible for
ly in all material respects, other assumptions could reasonably be
establishing and maintaining adequate internal control over
justified that would change the amount of reported net sales, cost
financial reporting as defined in Rule 13(a)-15(f) under the
of sales, and selling, general and administrative expenses as they
Securities Exchange Act of 1934. With the participation of
relate to the provisions for anticipated sales returns, allowance
the Chief Executive Officer and the Chief Financial Officer,
for doubtful accounts and inventory obsolescence reserves. For
our management conducted an evaluation of the effective-
2021, had these estimates been changed simultaneously by 5% in
ness of our internal control over financial reporting based on
either direction, our reported gross profit would have increased or
the framework and criteria established in Internal Control
decreased by approximately $0.6 million and selling, general and
– Integrated Framework (2013), issued by the Committee of
administrative expenses would have changed by approximately
Sponsoring Organizations of the Treadway Commission. Based
$0.1 million. The collective impact of these changes on 2021 op-
on this evaluation, our management has concluded that our
erating income, net income attributable to Inter Parfums, Inc., and
internal control over financial reporting was effective as of
net income attributable to Inter Parfums, Inc. per diluted share
December 31, 2021.
would be an increase or decrease of approximately $0.6 million,
Our independent auditor, Mazars USA LLP, a registered
$0.3 million and $0.01, respectively.
public accounting firm, has issued its report on its audit of our
internal control over financial reporting. This report appears
on the following page.
Quantitative and Qualitative
disclosures about market risk.
General
We address certain financial exposures through a controlled
program of risk management that primarily consists of the use
of derivative financial instruments. We primarily enter into for-
eign currency forward exchange contracts in order to reduce the
effects of fluctuating foreign currency exchange rates. We do not
engage in the trading of foreign currency forward change con-
tracts or interest rate swaps.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
72
report of independent registered
public accounting firm
REPORT OF INDEPENDENT REGISTERED
We conducted our audits in accordance with the stan-
PUBLIC ACCOUNTING FIRM
To Shareholders and
the Board of Directors of Inter Parfums, Inc.
Opinions on the Financial Statements
dards of the PCAOB. Those standards require that we plan
and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material mis-
statement, whether due to error or fraud, and whether effec-
and Internal Control over Financial Reporting
tive internal control over financial reporting was maintained
We have audited the accompanying consolidated balance sheets
in all material respects.
of Inter Parfums, Inc. (the “Company”) as of December 31, 2021
Our audits of the consolidated financial statements in-
and 2020, and the related consolidated statements of income,
cluded performing procedures to assess the risks of mate-
comprehensive income, shareholders’ equity, and cash flows
rial misstatement of the consolidated financial statements,
for each of the years in the three-year period ended December
whether due to error or fraud, and performing procedures
31, 2021, and the related notes and the schedule listed in the
that respond to those risks. Such procedures included exam-
Index in Item 15(a)(2) (collectively referred to as the “finan-
ining, on a test basis, evidence regarding the amounts and
cial statements”). We also have audited the Company’s inter-
disclosures in the consolidated financial statements. Our au-
nal control over financial reporting as of December 31, 2021,
dits also included evaluating the accounting principles used
based on criteria established in Internal Control - Integrated
and significant estimates made by management, as well as
Framework: (2013) issued by the Committee of Sponsoring
evaluating the overall presentation of the consolidated finan-
Organizations of the Treadway Commission (COSO).
cial statements. Our audit of internal control over financial
In our opinion, the consolidated financial statements re-
reporting included obtaining an understanding of internal
ferred to above present fairly, in all material respects, the fi-
control over financial reporting, assessing the risk that a
nancial position of the Company as of December 31, 2021 and
material weakness exists, and testing and evaluating the de-
2020, and the results of its operations and its cash flows for
sign and operating effectiveness of internal control based on
each of the years in the three-year period ended December 31,
the assessed risk. Our audits also included performing such
2021, in conformity with accounting principles generally ac-
other procedures as we considered necessary in the circum-
cepted in the United States of America. Also in our opinion, the
stances. We believe that our audits provide a reasonable ba-
Company maintained, in all material respects, effective inter-
sis for our opinions.
nal control over financial reporting as of December 31, 2021,
based on criteria established in Internal Control - Integrated
Definition and Limitations of Internal Control
Framework: (2013) issued by COSO.
over Financial Reporting
Basis for Opinion
A company’s internal control over financial reporting is a pro-
cess designed to provide reasonable assurance regarding the
The Company’s management is responsible for these consol-
reliability of financial reporting and the preparation of consoli-
idated financial statements, for maintaining effective internal
dated financial statements for external purposes in accordance
control over financial reporting, and for its assessment of
with generally accepted accounting principles. A company’s in-
the effectiveness of internal control over financial reporting
ternal control over financial reporting includes those policies
included in the accompanying Management’s Annual Report
and procedures that (1) pertain to the maintenance of records
on Internal Control over Financial Reporting. Our responsi-
that, in reasonable detail, accurately and fairly reflect the
bility is to express an opinion on the Company’s consolidated
transactions and dispositions of the assets of the company;
financial statements and an opinion on the Company’s internal
(2) provide reasonable assurance that transactions are re-
control over financial reporting based on our audits. We are
corded as necessary to permit preparation of consolidated
a public accounting firm registered with the Public Company
financial statements in accordance with generally accepted
Accounting Oversight Board (United States) (“PCAOB”) and
accounting principles, and that receipts and expenditures of
are required to be independent with respect to the Company
the company are being made only in accordance with authori-
in accordance with the U.S. federal securities laws and the ap-
zations of management and directors of the company; and (3)
plicable rules and regulations of the Securities and Exchange
provide reasonable assurance regarding prevention or timely
Commission and the PCAOB.
detection of unauthorized acquisition, use, or disposition of
73
the company’s assets that could have a material effect on the
The determination of the future cash flows of the in-
consolidated financial statements.
tangible assets requires management to make significant
Because of its inherent limitations, internal control over
estimates and assumptions related to forecasts of future
financial reporting may not prevent or detect misstatements.
revenues, operating margins and discount rates. As dis-
Also, projections of any evaluation of effectiveness to future
closed by management, changes in these assumptions
periods are subject to the risk that controls may become inad-
could have a significant impact on the future cash flows and
equate because of changes in conditions, or that the degree of
therefore, on the amount of any impairment charge. The de-
compliance with the policies or procedures may deteriorate.
termination of an impairment indicator on the finite – life
.
Critical Audit Matter
intangible assets requires management judgments and in-
volves assumptions.
The critical audit matter communicated below is a matter aris-
We identified the impairment assessment of intangible
ing from the current period audit of the consolidated financial
assets as a critical audit matter and auditing management’s
statements that was communicated or required to be commu-
judgments regarding the evaluation of impairment indicators,
nicated to the audit committee and that: (1) relates to accounts
forecasts of future revenue and operating margin, and the dis-
or disclosures that are material to the consolidated financial
count rate to be applied involve a high degree of subjectivity.
statements and (2) involved our especially challenging, subjec-
The primary procedures we performed to address this crit-
tive, or complex judgments. The communication of critical audit
ical audit matter included:
matter does not alter in any way our opinion on the consolidated
• Reviewing the analysis of the identification of impairment
financial statements, taken as a whole, and we are not, by com-
evidence for each indefinite and finite-life asset based on three
municating the critical audit matter below, providing a separate
indicators (sales analysis, new products launches, payment of
opinion on the critical audit matter or on the accounts or disclo-
minimum guarantees), and then corroborating that analysis
sures to which it relates.
with external information and evidence obtained in other areas
As described in Notes 1 and 8 to the consolidated financial
of the audit.
statements, the Company’s consolidated indefinite and finite
• Testing the effectiveness of controls relating to manage-
—life intangible assets balance was $214 million at December
ment’s impairment tests, including controls over the impair-
31, 2021. Indefinite lived intangible assets principally consist
ment indicators and determination of the future cash flows.
of trademarks and finite-lived intangible assets represent
• In testing management’s process for determining the fu-
fees to acquire, or enter into a license.
ture cash flows we evaluated the reasonableness of manage-
Those intangible assets are tested for impairment as follows:
ment’s forecasts of future revenue and operating margin by
• Indefinite – life intangible assets are tested for impairment
performing a retrospective review in comparing these fore-
at least annually at the reporting unit level or more frequent-
casts to historical operating results, evaluating whether the
ly when events occur or circumstances change. The evaluation
assumptions used were reasonable considering current in-
requires a comparison of the estimated fair value of the asset
formation as well as future expectations, and using additional
to the carrying value of the asset. The fair value is estimated
evidence obtained in other areas of the audit.
based upon discounted future cash flow projections. If the car-
• Utilizing a valuation specialist to assist in auditing the
rying value of an indefinite-lived intangible asset exceeds its
discount rate. It includes evaluating whether the assump-
fair value, an impairment charge is recorded.
tions used were reasonable by comparing to third par ty
• Finite – life intangible assets are tested for impairment
market data.
testing whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable.
If impairment indicators exist, the undiscounted future cash
flows associated with the expected service potential of the
asset are compared to the carrying value of the asset. If the
Mazars USA LLP
projection of undiscounted cash flows is less than the carrying
We have served as the Company’s auditor since 2004.
value of a finite-lived intangible asset, an impairment charge
New York, New York
would be recorded.
March 1, 2022
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 74
INTER PARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
Years Ended December 31,
ASSETS
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Receivables, other
Other current assets
Income taxes receivable
Total current assets
Equipment and leasehold improvements, net
Rights of use assets, net
Trademarks, licenses and other intangible assets, net
Deferred tax assets
Other assets
Total assets
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt
Current portion of lease liabilities
Accounts payable - trade
Accrued expenses
Income taxes payable
Total current liabilities
Long–term debt, less current portion
Lease liabilities, less current portion
Equity:
Inter Parfums, Inc. shareholders’ equity:
2021
2020
$169,681
$159,613
160,014 126,627
124,057
159,281
198,914
158,822
10,308
21,375
210
709,715
149,352
33,728
214,047
7,936
30,586
$1,145,364
$15,911
6,014
81,980
136,677
4,328
244,910
132,902
29,220
1,815
16,912
2,806
600,720
19,580
24,734
214,108
8,041
22,962
$890,145
$14,570
5,133
35,576
95,629
5,297
156,205
10,136
21,354
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
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, at cost, 9,864,805 common shares
at December 31, 2020 and 2020
Total Inter Parfums, Inc. shareholders’ equity
Noncontrolling interest
Total equity
Total liabilities and equity
(See accompanying notes to consolidated financial statements
32
87,132
560,663
(38,432)
(37,475)
571,920
166,412
738,332
$1,145,364
32
75,708
503,567
(5,997)
(37,475)
535,835
166,615
702,450
$890,145
financial statements
75
INTER PARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
Years Ended December 31,
Net sales
Cost of sales
Gross margin
Selling, general, and administrative expenses
Impairment loss
Income from operations
Other expenses (income):
Interest expense
(Gain) Loss on foreign currency
Interest and dividend income
Other Income
Income before income taxes
Income taxes
Net income
Less: Net income attributable to the noncontrolling interest
Net income attributable to Inter Parfums, Inc.
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic
Diluted
Weighted average number of shares outstanding:
Basic
Diluted
Dividends declared per share
(See accompanying notes to consolidated financial statements.)
2021
$879,516
322,614
556,902
406,459
2,393 -
148,050
2,825
(2,338)
(3,403)
(53)
(2,969)
151,019
40,992
110,027
22,616
$87,411
2020
$539,009
208,278
330,731
260,648
-
70,083
1,970
2,178
(2,865)
(549)
734
69,349
19,381
49,968
11,749
2019
$713,514
267,578
445,936
341,209
104,727
2,146
1,128
(3,693)
-
(419)
105,146
29,076
76,070
15,821
$38,219
$60,249
$2.76
2.75
$1.21
1.21
$1.92
1.90
31,676,796
31,835,408
$1.00
31,536,659
31,654,544
$0.33
31,451,093
31,688,700
$1.16
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
76
INTER PARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except share and per share data)
Years Ended December 31,
Net income
Other comprehensive income:
Net derivative instrument, net of tax
Transfer of OCI into earnings
Translation adjustments, net of tax
Comprehensive income
Comprehensive income attributable to noncontrolling interests:
Net income
Net derivative instrument income (loss), net of tax
Translation adjustments, net of tax
Comprehensive income attributable to Inter Parfums, Inc.
(See accompanying notes to consolidated financial statements.)
2021
$110,027
2020
$49,968
2019
$76,070
(1,367)
-
(42,967)
(44,334)
65,693
22,616
(375)
(11,524)
10,717
$54,976
(19)
(52)
47,912
47,841
97,809
11,749
(19)
14,004
25,734
$72,075
22
(136)
(8,712)
(8,826)
67,244
15,821
(30)
(2,593)
13,198
$54,046
financial statements
77
INTER PARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(In thousands, except share and per share data)
Years Ended December 31,
Common stock, beginning of year
Shares issued upon exercise of stock options
Common stock, end of year
Additional paid-in capital, beginning of year
Shares issued upon exercise of stock options
Share-based compensation
Purchase of subsidiary shares from noncontrolling interests
Shares issued for license acquisition
Transfer of subsidiary shares purchased
Additional paid-in capital, end of year
Retained earnings, beginning of year
Net income
Dividends
Stock-based compensation
Retained earnings, end of year
Accumulated other comprehensive loss, beginning of year
Foreign currency translation adjustment, net of tax
Transfer from other comprehensive income into earnings
Net derivative instrument gain, net of tax
Accumulated other comprehensive loss, end of year
2021
$32
-
$32
75,708
5,393
1,566
-
5,000
(535)
$87,132
503,567
87,411
(31,690)
1,375
560,663
(5,997)
(31,443)
-
(992)
(38,432)
Noncontrolling interest, beginning of year
Net income
Foreign currency translation adjustment, net of tax
Net derivative instrument loss, net of tax
Purchase of subsidiary shares from noncontrolling interests
Dividends
Share-based compensation
Transfer of subsidiary shares purchased
Noncontrolling interest, end of year
Total equity
166,615
22,616
(11,524)
(375)
-
(9,836)
(293)
(791)
166,412
$738,332
(See accompanying notes to consolidated financial statements.)
2020
$31
1
$32
70,664
2,771
1,711
-
-
562
2019
$31
-
$31
69,970
4,458
1,403
(5,167)
-
-
$75,708
$70,664
474,637
38,219
(10,406)
1,117
503,567
(39,853)
33,908
(52)
-
(5,997)
140,994
11,749
14,004
(19)
-
(324)
350
(139)
166,615
$702,450
448,731
60,249
(36,349)
2,006
474,637
(33,650)
(6,119)
(136)
52
(39,853)
138,139
15,821
(2,593)
(30)
(920)
(9,654)
231
-
140,994
$608,998
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
78
INTER PARFUMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years ended December, 31
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization including impairment loss
Provision for doubtful accounts
Noncash stock compensation
Share of income of equity investment
Lease expense
Deferred tax expense (benefit)
Change in fair value of derivatives
Changes in:
Accounts receivable
Inventories
Other assets
Operating lease liabilities
Accounts payable and accrued expenses
Income taxes, net
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of short-term investments
Proceeds from sale of short-term investments
Purchase of equipment and leasehold improvements
Payment for intangible assets acquired
Purchase of equity investment
Net cash provided used in investing activities
Cash flows from financing activities:
Repayment of long-term debt
Proceeds issuance of long-term debt
Proceeds from exercise of options
Dividends paid
Dividends paid to noncontrolling interests
Purchase of subsidiary shares from noncontrolling interests
Net cash used in financing activities
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents – beginning of year
Cash and cash equivalents – end of year
Supplemental disclosures of cash flow information:
Cash paid for:
Interest
Income taxes
(See accompanying notes to consolidated financial statements.)
2021
2020
2019
$110,027
$49,968
$76,070
12,698
853
2,853
(53)
7,302
(465)
65
(45,395)
(49,815)
(16,725)
(7,503)
103,046
2,698
119,586
(55,691)
10,644
(141,274)
(1,545)
-
(187,866)
(43,056)
157,382
5,393
(31,690)
(9,836)
-
78,193
(11,207)
(1,294)
169,681
$168,387
9,067
4,824
3,029
(549)
5,483
581
(137)
13,157
19,333
1,176
(5,421)
(32,239)
(3,279)
64,993
(7,582)
11,513
(11,011)
(1,251)
(13,998) -
(22,329)
(13,725)
13,438 -
2,771
(20,805)
(324)
-
(18,645)
12,245
36,264
133,417
$169,681
8,729
1,380
3,394
-
6,021
(2,330)
(169)
1,124
(5,925)
(4,945)
(4,953)
(4,960)
3,016
76,452
(97,958)
44,814
(5,427)
(6,067)
(64,638)
(22,321)
4,458
(34,579)
(9,654)
(6,087)
(68,183)
(3,350)
(59,719)
193,136
$133,417
$2,468
40,497
$1,105
21,772
$1,764
26,332
notes to consolidated financial statements
(in thousands, except share and per share data)
79
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) The Company and its Significant
Accounting Policies
Business Of The Company
Inter Parfums, Inc. and its subsidiaries (the “Company”) are in
Cash and Cash Equivalents
and Short-Term Investments
All highly liquid investments purchased with a maturity of
three months or less are considered to be cash equivalents.
The Company also has short-term investments which consist
the fragrance business and manufacture and distribute a wide
of certificates of deposit and other contracts with maturities
array of fragrances and fragrance related products.
greater than three months and available for sale marketable
Substantially all of our prestige fragrance brands are licensed
equity securities. The Company monitors concentrations of
from unaffiliated third parties, and our business is dependent upon
credit risk associated with financial institutions with which
the continuation and renewal of such licenses. With respect to the
the Company conducts significant business. The Company
Company’s largest brands, we license the Montblanc, Jimmy Choo,
believes its credit risk is minimal, as the Company primarily
Coach and GUESS brand names. As a percentage of net sales, prod-
conducts business with large, well-established financial in-
uct sales for the Company’s largest brands were as follows:
stitutions. Substantially all cash and cash equivalents are pri-
Year Ended December 31, 2021 2020 2019
22%
Montblanc
Jimmy Choo
Coach
GUESS
19%
18%
16%
12%
21%
16%
17%
11%
marily held at financial institutions outside the United States
and are readily convertible into U.S. dollars.
16%
14%
10%
Accounts Receivable
Accounts receivable represent payments due to the Company
for previously recognized net sales, reduced by allowances for
doubtful accounts or balances which are estimated to be un-
No other brand represented 10% or more of consolidated net sales.
collectible, which aggregated $2.2 million and $5.5 million as
Basis Of Preparation
The consolidated financial statements include the accounts
of December 31, 2021 and 2020, respectively. Accounts receiv-
able balances are written-off against the allowance for doubt-
ful accounts when they become uncollectible. Recoveries of
of the Company and its subsidiaries, including 73% owned
accounts receivable previously recorded against the allow-
Interparfums SA, a subsidiary whose stock is publicly traded
ance are recorded in the consolidated statement of income
in France. All material intercompany balances and transac-
when received. We generally grant credit based upon our anal-
tions have been eliminated.
ysis of the customer’s financial position, as well as previously
established buying patterns.
Management Estimates
Management makes assumptions and estimates to prepare
financial statements in conformity with accounting principles
Inventories
Inventories, including promotional merchandise, only include
generally accepted in the United States of America. Those as-
inventory considered saleable or usable in future periods, and
sumptions and estimates directly affect the amounts reported
are stated at the lower of cost and net realizable value, with
and disclosures included in the consolidated financial state-
cost being determined on the first-in, first-out method. Cost
ments. Actual results could differ from those assumptions and
components include raw materials, direct labor and overhead
estimates. Significant estimates for which changes in the near
(e.g., indirect labor, utilities, depreciation, purchasing, receiv-
term are considered reasonably possible and that may have a
ing, inspection and warehousing) as well as inbound freight.
material impact on the financial statements are disclosed in
Promotional merchandise is charged to cost of sales at the time
these notes to the consolidated financial statements.
the merchandise is shipped to the Company’s customers.
Foreign Currency Translation
For foreign subsidiaries with operations denominated in a for-
Derivatives
All derivative instruments are recorded as either assets or
eign currency, assets and liabilities are translated to U.S. dol-
liabilities and measured at fair value. The Company uses de-
lars at year-end exchange rates. Income and expense items are
rivative instruments to principally manage a variety of market
translated at average rates of exchange prevailing during the
risks. For derivatives designated as hedges of the exposure to
year. Gains and losses from translation adjustments are accu-
changes in fair value of the recognized asset or liability or a
mulated in a separate component of shareholders’ equity.
firm commitment (referred to as fair value hedges), the gain or
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 80
loss is recognized in earnings in the period of change together
Intangible assets subject to amortization are evaluated for im-
with the offsetting loss or gain on the hedged item attributable
pairment testing whenever events or changes in circumstances
to the risk being hedged. The effect of that accounting is to
indicate that the carrying amount of an amortizable intangible as-
include in earnings the extent to which the hedge is not effec-
set may not be recoverable. If impairment indicators exist for an
tive in achieving offsetting changes in fair value. For cash flow
amortizable intangible asset, the undiscounted future cash flows
hedges, the effective portion of the derivative’s gain or loss is
associated with the expected service potential of the asset are
initially reported in equity (as a component of accumulated oth-
compared to the carrying value of the asset. If our projection of
er comprehensive income) and is subsequently reclassified into
undiscounted future cash flows is in excess of the carrying value
earnings in the same period or periods during which the hedged
of the intangible asset, no impairment charge is recorded. If our
forecasted transaction affects earnings. The ineffective portion
projection of undiscounted future cash flows is less than the car-
of the gain or loss of a cash flow hedge is reported in earnings
rying value of the intangible asset, an impairment charge would be
immediately. The Company also holds certain instruments for
recorded to reduce the intangible asset to its fair value.
economic purposes that are not designated for hedge account-
ing treatment. For these derivative instruments, changes in
their fair value are recorded in earnings immediately.
Property, Equipment
and Leasehold Improvements
Property, equipment and leasehold improvements are stated at cost
Revenue Recognition
The Company sells its products to department stores, perfumer-
ies, specialty stores and domestic and international wholesalers
and distributors. Our revenue contracts represent single per-
formance obligations to sell our products to customers. Sales of
such products by our domestic subsidiaries are denominated in
less accumulated depreciation and amortization. Depreciation and
U.S. dollars, and sales of such products by our foreign subsidiar-
amortization are provided using the straight-line method over the
ies are primarily denominated in either euro or U.S. dollars. The
estimated useful lives for equipment, which range between three
Company recognizes revenues when contract terms are met, the
and ten years and the shorter of the lease term or estimated useful
price is fixed and determinable, collectability is reasonably as-
asset lives for leasehold improvements. Depreciation has not yet
sured, and control of the assets has passed to the customer based
begun on property recently purchased, as it has not yet been put into
on the agreed upon shipping terms. Net sales are comprised of
service. Depreciation provided on equipment used to produce inven-
gross revenues less returns, trade discounts and allowances. The
tory, such as tools and molds, is included in cost of sales.
Company does not bill its customers’ freight and handling charges.
Long-Lived Assets
Indefinite-lived intangible assets principally consist of trade-
All shipping and handling costs, which aggregated $10.1 million,
$5.0 million and $7.7 million in 2021, 2020 and 2019, respectively,
are included in selling, general and administrative expenses in the
marks which are not amortized. The Company evaluates indef-
consolidated statements of income. The Company grants credit to
inite-lived intangible assets for impairment at least annually
all qualified customers and does not believe it is exposed signifi-
during the fourth quarter, or more frequently when events occur
cantly to any undue concentration of credit risk. No one customer
or circumstances change, such as an unexpected decline in sales,
represented 10% or more of net sales in 2021, 2020 or 2019.
that would more-likely-than-not indicate that the carrying value
of an indefinite-lived intangible asset may not be recoverable.
When testing indefinite-lived intangible assets for impairment,
Sales Returns
Generally, the Company does not permit customers to return
the evaluation requires a comparison of the estimated fair value
their unsold products. However, for U.S. based customers, we
of the asset to the carrying value of the asset. The fair values used
allow returns if properly requested, authorized and approved.
in our evaluations are estimated based upon discounted future
The Company regularly reviews and revises, as deemed nec-
cash flow projections using a weighted average cost of capital of
essary, its estimate of reserves for future sales returns based
7.47% and 6.99% in 2021 and 2020, respectively. The cash flow
primarily upon historic trends and relevant current data includ-
projections are based upon a number of assumptions, including
ing information provided by retailers regarding their inventory
future sales levels, future cost of goods and operating expense
levels. In addition, as necessary, specific accruals may be es-
levels, as well as economic conditions, changes to our business
tablished for significant future known or anticipated events. The
model or changes in consumer acceptance of our products which
types of known or anticipated events that we consider include,
are more subjective in nature. If the carrying value of an indefi-
but are not limited to, the financial condition of our custom-
nite-lived intangible asset exceeds its fair value, an impairment
ers, store closings by retailers, changes in the retail environ-
charge is recorded.
ment and our decision to continue to support new and existing
notes to consolidated financial statements
(in thousands, except share and per share data)
81
products. The Company records its estimate of potential sales
returns as a reduction of sales and cost of sales with corre-
License Agreements
The Company’s
license agreements generally provide the
sponding entries to accrued expenses, to record the refund
Company with worldwide rights to manufacture, market and sell
liability, and inventory, for the right to recover goods from the
fragrance and fragrance related products using the licensors’
customer. The refund liability associated with estimated returns
trademarks. The licenses typically have an initial term of approx-
was $5.1 million and $3.6 million at December 31, 2021 and
imately 5 to 15 years, and are potentially renewable subject to the
2020, respectively, and the amounts recognized for the rights to
Company’s compliance with the license agreement provisions. The
recover products was $1.9 million and $1.4 million at December
remaining terms, excluding potential renewal periods, range from
31, 2021 and 2020, respectively. The physical condition and
approximately 1 to 12 years. Under each license, the Company is
marketability of returned products are the major factors we
required to pay royalties in the range of 6% to 10% to the licensor,
consider in estimating realizable value. Actual returns, as well
at least annually, based on net sales to third parties.
as estimated realizable values of returned products, may dif-
In certain cases, the Company may pay an entry fee to ac-
fer significantly, either favorably or unfavorably, from our esti-
quire, or enter into, a license where the licensor or another
mates, if factors such as economic conditions, inventory levels or
licensee was operating a pre-existing fragrance business. In
competitive conditions differ from our expectations.
those cases, the entry fee is capitalized as an intangible asset
and amortized over its useful life.
Payments to Customers
The Company records revenues generated from purchase with
Most license agreements require minimum royalty pay-
ments, incremental royalties based on net sales levels and
purchase and gift with purchase promotions as sales and the
minimum spending on advertising and promotional activities.
costs of its purchase with purchase and gift with purchase
Royalty expenses are accrued in the period in which net sales
promotions as cost of sales. Certain other incentive arrange-
are recognized while advertising and promotional expenses
ments require the payment of a fee to customers based on
are accrued at the time these costs are incurred.
their attainment of pre-established sales levels. These fees
In addition, the Company is exposed to certain concentra-
have been recorded as a reduction of net sales.
tion risk. Most of our prestige fragrance brands are licensed
Advertising and Promotion
Advertising and promotional costs are expensed as incurred
and recorded as a component of cost of goods sold (in the case
of free goods given to customers) or selling, general and ad-
from unaffiliated third parties, and our business is dependent
upon the continuation and renewal of such licenses.
Income Taxes
The Company accounts for income taxes using an asset and liability
ministrative expenses. Advertising and promotional costs in-
approach that requires the recognition of deferred tax assets and
cluded in selling, general and administrative expenses were
liabilities for the expected future tax consequences of events that
$171.8 million, $91.7 million and $144.6 million for 2021, 2020
have been recognized in its financial statements or tax returns.
and 2019, respectively. Costs relating to purchase with pur-
The net deferred tax assets assume sufficient future earnings for
chase and gift with purchase promotions that are reflected in
their realization, as well as the continued application of currently
cost of sales aggregated $37.6 million, $26.4 million and $38.9
enacted tax rates. Included in net deferred tax assets is a valuation
million in 2021, 2020 and 2019, respectively.
allowance for deferred tax assets, where management believes
Package Development Costs
Package development costs associated with new products and re-
it is more-likely-than-not that the deferred tax assets will not be
realized in the relevant jurisdiction. If the Company determines
that a deferred tax asset will not be realizable, an adjustment to the
designs of existing product packaging are expensed as incurred.
deferred tax asset will result in a reduction of net earnings at that
Operating Leases
The Company leases its offices and warehouses, vehicles, and
time. Accrued interest and penalties are included within the relat-
ed tax asset or liability in the accompanying financial statements.
certain office equipment, substantially all of which are classi-
fied as operating leases. The Company currently has no materi-
al financing leases. The Company determines if an arrangement
Issuance of Common Stock
by Consolidated Subsidiary
The difference between the Company’s share of the proceeds
is a lease at inception. Operating lease assets and obligations
received by the subsidiary and the carrying amount of the por-
are recognized at the lease commencement date based on the
tion of the Company’s investment deemed sold, is reflected as
present value of lease payments over the lease term.
an equity adjustment in the consolidated balance sheets.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT 82
Treasury Stock
The Board of Directors may authorize share repurchases of the
Business significantly improved in the second half of 2020
and continued to improve throughout 2021, as retail stores re-
Company’s common stock (Share Repurchase Authorizations).
opened, and consumers increased online purchasing. While we
Share repurchases under Share Repurchase Authorizations may
expect this trend to continue, as the luxury fragrance industry
be made through open market transactions, negotiated purchase or
has shown continued resilience, the introduction of variants of
otherwise, at times and in such amounts within the parameters au-
COVID-19 in various parts of the world has caused the tempo-
thorized by the Board. Shares repurchased under Share Repurchase
rary re-implementation of governmental restrictions to pre-
Authorizations are held in treasury for general corporate purposes,
vent further spread of the virus. In addition, international air
including issuances under various employee stock option plans.
travel has remained curtailed in many jurisdictions due to both
Treasury shares are accounted for under the cost method and re-
governmental restrictions and consumer health concerns.
ported as a reduction of equity. Share Repurchase Authorizations
While COVID-19 has significantly restricted international trav-
may be suspended, limited or terminated at any time without notice.
el in the near-term, we continue to believe that global travel
retail will once again be a growth opportunity for the long-
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (“FASB”)
term. Lastly, the improved economy has put significant strains
on our supply chain causing disruptions affecting the procure-
issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic
ment of components, the ability to transport goods, and relat-
326): Measurement of Credit Losses on Financial Instruments”,
ed cost increases. These disruptions have come at a time when
as updated in 2019 and 2020, which require a financial asset mea-
demand for our product lines has never been stronger or more
sured at amortized cost basis to be presented at the net amount
sustained. We have been addressing this issue since the begin-
expected to be collected. The new rules eliminate the probable
ning of 2021, by ordering well in advance of need and in larg-
initial recognition threshold and, instead, reflect an entity’s current
er quantities. Going forward, we aim to carry more inventory
estimate of all expected credit losses. The new rules took effect for
overall, source the same components from multiple suppliers
the Company in the first quarter of 2020 and there was no material
and when possible, manufacture products closer to where
impact on our consolidated financial statements.
they are sold. We do not expect the supply chain bottlenecks
There are no other recent accounting pronouncements is-
to begin lifting until later in 2022. Therefore, despite recent
sued but not yet adopted that would have a material effect on
business improvement, the impact of the COVID-19 pandemic
our consolidated financial statements.
may have a material adverse effect on our results of our oper-
ations, financial position and cash flows through at least the
Reclassifications
Certain prior year’s amounts in the accompanying consolidated
end of 2022.
statements of cash flows have been reclassified to conform to
current period presentation.
(2) Impact of COVID-19 Pandemic
(3) Recent Agreements
Salvatore Ferragamo
In October 2021, we closed on a transaction agreement with
Salvatore Ferragamo S.p.A., whereby an exclusive and world-
A novel strain of coronavirus (“COVID-19”) surfaced in late 2019
wide license was granted for the production and distribution
and has spread around the world, including to the United States
of Ferragamo brand perfumes. Our rights under this license
and France. In March 2020, the World Health Organization de-
are subject to certain minimum advertising expenditures and
clared COVID-19 a pandemic.
royalty payments as are customary in our industry. The license
In response to the COVID-19 pandemic various national, state,
became effective in October 2021 and will last for 10 years with
and local governments where we, our suppliers, and our custom-
a 5-year optional term, subject to certain conditions.
ers operate initially issued decrees prohibiting certain businesses
With respect to the management and coordination of activ-
from continuing to operate and certain classes of workers from
ities related to the license agreement, the Company operates
reporting to work. In all jurisdictions in which we operate we have
through a wholly-owned Italian subsidiary based in Florence,
been following guidance from authorities and health officials.
that was acquired from Salvatore Ferragamo on October 1,
The effects of the COVID-19 pandemic on the beauty industry
2021. The acquisition together with the license agreement was
began in early March 2020. Retail store closings, event cancel-
accounted for as an asset acquisition. The following table sum-
lations and a shutdown of international air travel brought our
marizes the estimated fair values of the assets acquired and
sales to a virtual standstill and caused a significant unfavorable
liabilities assumed on October 1, 2021. All amounts have been
impact on our results of operations in 2020.
translated to U.S. dollars at the October 1, 2021 exchange rate.
notes to consolidated financial statements
(in thousands, except share and per share data)
83
$ in thousands
Inventories
Trademarks and licenses
Other assets
Assets acquired
Liabilities assumed
$17,805
$15,880
$3,033
36,718
(958)
$35,760
Land and Building Acquisition
Headquarters in Paris
In April 2021, Interparfums SA, completed the acquisition of its
headquarters at 10 rue de Solférino in the 7th arrondissement
of Paris from the property developer. This is an office complex
combining three buildings connected by two inner courtyards,
and consists of approximately 40,000 total sq. ft.
The $142 million purchase price includes the complete reno-
Emanuel Ungaro
In October 2021, we also entered into a 10-year exclusive glob-
vation of the site. As of December 31, 2021, $136.1 million of the
purchase price, including approximately $3.1 million of acquisi-
al licensing agreement a with a 5-year optional term subject
tion costs, is included in property, equipment and leasehold im-
to certain conditions, with Emanuel Ungaro Italia S.r.l, for the
provements on the accompanying balance sheet as of December
creation, development and distribution of fragrances and fra-
31, 2021. Approximately $8.8 million of cash held in escrow is
grance-related products, under the Emanuel Ungaro brand.
included in other assets on the accompanying balance sheet as
Our rights under this license are subject to certain minimum
of December 31, 2021. In addition, the Company borrowed $17.0
advertising expenditures and royalty payments as are custom-
million pursuant to a short-term loan equal to the VAT credit,
ary in our industry.
and in July 2021, the $17.0 million VAT credit was reimbursed by
the French Tax Authorities and the loan was repaid.
Donna Karan and DKNY
In September 2021, we entered into a long-term global li-
The acquisition was financed by a 10-year €120 million (ap-
proximately $136 million) bank loan which bears interest at
censing agreement for the creation, development and distri-
one-month Euribor plus 0.75%. Approximately €80 million of
bution of fragrances and fragrance-related products under
the variable rate debt was swapped for fixed interest rate debt
the Donna Karan and DKNY brands. Our rights under this
with a maximum interest rate of 2%.
license are subject to certain minimum advertising expendi-
tures and royalty payments as are customary in our industry.
With this agreement, we are gaining several well-established
Anna Sui Corp.
In January 2021, we renewed our license agreement with Anna
and valuable fragrance franchises, most notably Donna
Sui Corp. for the creation, development and distribution of fra-
Karan Cashmere Mist and DKNY Be Delicious, as well as a
grance products through December 31, 2026, without any mate-
significant loyal consumer base around the world. In con-
rial changes in terms and conditions. Our initial 10-year license
nection with the grant of license, we issued 65,342 shares of
agreement with Anna Sui Corp. was signed in 2011. The renewal
Inter Parfums, Inc. common stock valued at $5.0 million to
agreement also allows for an additional 5-year term through
the licensor. The exclusive license is effective July 1, 2022,
2031 at the option of the Company.
and we are planning to launch new fragrances under these
brands in 2023.
Rochas Fashion
Effective January 1, 2021, we entered into a new license agree-
French Tax Settlement
The French authorities had considered that the existence of IP
ment modifying our Rochas fashion business model. The new
agreement calls for a reduction in royalties to be received. As a
Suisse, a wholly-owned subsidiary of Interparfums SA, does
result, in the first quarter of 2021, we took a $2.4 million impair-
not, in and of itself, constitute a permanent establishment and
ment charge on our Rochas fashion trademark. The new license
therefore Interparfums SA should pay French taxes on all or
also contains an option for the licensee to buy-out the Rochas
part of the profits of that entity.
fashion trademarks in June 2025 at its then fair market value.
In June 2021, a global settlement agreement was reached
with the French Tax Authorities, whereby Interparfums SA paid
in December 2021, €2.5 million (approximately $2.9 million)
S.T. Dupont
In January 2021, we renewed our license agreement with S.T.
effectively lowering the Lanvin brand royalty rate charged by
Dupont for the creation, development and distribution of fra-
IP Suisse for the periods from 2017 through 2020. Interpar-
grance products through December 31, 2022, without any mate-
fums SA also agreed to apply the lower rate in 2021 through
rial changes in terms and conditions. Our initial 11-year license
2025 and to transfer the Lanvin brand from IP Suisse to Inter-
agreement with S.T. Dupont was signed in June 1997 and had
parfums SA by December 31, 2025.
previously been extended through December 31, 2021.
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
84
(4) Inventories
Year Ended December 31,
Raw materials and
component parts
Finished goods
Overhead included in inventory aggregated $3.7 million and $5.4
million as of December 31, 2021 and 2020, respectively. Included
2021
2020
in inventories is an inventory reserve, which represents the
$111,312
87,602
$198,914
$66,492
92,330
$158,822
difference between the cost of the inventory and its estimated
realizable value, based upon sales forecasts and the physical
condition of the inventories. In addition, and as necessary, spe-
cific reserves for future known or anticipated events may be es-
tablished. Inventory reserves aggregated $15.8 million and $9.4
million as of December 31, 2021 and 2020, respectively.
(5) Fair Value of Financial Instruments
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are catego-
rized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine
fair value.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021
Quoted Prices in
Significant
Significant
Active Markets for Other Observable
Unobservable
Total
Identical Assets Inputs Inputs
(Level 3)
(Level 2)
(Level 1)
Assets:
Short-term investments
Foreign currency forward exchange contracts
accounted for using hedge accounting
Foreign currency forward exchange contracts
not accounted for using hedge accounting
Interest rate swaps
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2020
$160,014
$-
$160,014
$-
1,982
63
(234)
$1,811
-
-
-
-
1,982
63
(234)
$1,811
-
-
-
-
Quoted Prices in
Significant
Significant
Active Markets for Other Observable
Unobservable
Total
Identical Assets Inputs Inputs
(Level 3)
(Level 2)
(Level 1)
Assets:
Short-term investments
$126,627
$-
$126,627
Foreign currency forward exchange contracts
not accounted for using hedge accounting
253
$126,880
-
-
253
$126,880
$-
-
-
The carrying amount of cash and cash equivalents including money market funds, short-term investments including marketable
equity securities, accounts receivable, other receivables, accounts payable and accrued expenses approximates fair value due to
the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the variable
interest rates on the Company’s indebtedness approximate current market rates.
notes to consolidated financial statements
(in thousands, except share and per share data)
85
Foreign currency forward exchange contracts are valued
At December 31, 2021, the Company had foreign currency
based on quotations from financial institutions and the value of
contracts in the form of forward exchange contracts with no-
interest rate swaps are the discounted net present value of the
tional amounts of approximately U.S. $64.5 million and GB £3.5
swaps using third party quotes from financial institutions.
million, which all have maturities of less than one year.
(6) Derivative Financial Instruments
(7) Property, Equipment and Leasehold Improvements
The Company enters into foreign currency forward exchange
Year Ended December 31,
2021 2020
contracts to hedge exposure related to receivables denomi-
Land and Building
nated in a foreign currency and occasionally to manage risks
(construction in progress)
related to future sales expected to be denominated in a for-
Equipment
eign currency. Before entering into a derivative transaction
Leasehold Improvements
for hedging purposes, it is determined that a high degree of
initial effectiveness exists between the change in value of the
Less accumulated
$136,131
$52,036
2,082
190,249
-
$51,060
1,989
53,049
hedged item and the change in the value of the derivative in-
strument from movement in exchange rates. High effective-
depreciation and amortization
40,897 33,469
$149,352 $19,580
ness means that the change in the cash flows of the derivative
instrument will effectively offset the change in the cash flows
Depreciation and amortization expense was $4.4 million, $3.8
of the hedged item. The effectiveness of each hedged item is
million and $3.7 million in 2021, 2020, and 2019, respectively.
measured throughout the hedged period and is based on the
dollar offset methodology and excludes the portion of the
(8) Trademarks, Licenses and Other Intangible Assets
fair value of the foreign currency forward exchange contract
attributable to the change in spot-forward difference which
is reported in current period earnings. Any hedge ineffective-
ness is also recognized as a gain or loss on foreign currency in
Gross Accumulated Net Book
2021 Amount Amortization Value
Trademarks
the income statement. For hedge contracts that are no longer
(indefinite lives) $119,712
$-
$119,712
deemed highly effective, hedge accounting is discontinued, and
Trademarks
gains and losses accumulated in other comprehensive income
(finite lives)
43,820
68
43,752
are reclassified to earnings. If it is probable that the forecasted
Licenses
transaction will no longer occur, then any gains or losses ac-
(finite lives)
109,682
62,286
47,396
cumulated in other comprehensive income are reclassified to
Other intangible assets
current-period earnings.
Gains and losses in derivatives designated as hedges are
accumulated in other comprehensive income (loss) and gains
and losses in derivatives not designated as hedges are included
(finite lives)
Subtotal
Total
17,775
171,277
$290,989
14,588
76,942
$76,942
3,187
94,335
$214,047
in (gain) loss on foreign currency on the accompanying income
statements. Such gains and losses were immaterial in each of
the years in the three-year period ended December 31, 2021. For
Gross Accumulated Net Book
2020 Amount Amortization Value
Trademarks
the year ended December 31, 2021, interest expense includes a
(indefinite lives) $131,962
$-
$131,962
gain of $0.2 million, resulting from an interest rate swap.
Trademarks
All derivative instruments are reported as either assets or
(finite lives)
47,477
74
47,403
liabilities on the balance sheet measured at fair value. The val-
Licenses
uation of interest rate swap is included in long-term debt on
(finite lives)
93,248
62,262
30,986
the accompanying balance sheets. The valuation of foreign cur-
Other intangible assets
rency forward exchange contracts at December 31, 2021 and
(finite lives)
December 31, 2020, resulted in an asset and is included in other
current assets on the accompanying balance sheets.
Subtotal
Total
18,194
158,919
14,437
76,773
3,757
82,146
$290,881
$76,773
$214,108
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
86
Amortization expense was $5.9 million, $5.3 million and $5.0
chase, Lanvin was granted the right to repurchase the brand
million in 2021, 2020 and 2019, respectively. Amortization
names and trademarks on July 1, 2027 for €70 million (ap-
expense is expected to approximate $5.4 million in 2022,
proximately $79 million) (residual value) in accordance with
$4.4 million in 2023, $4.2 million in 2024, 2025 and 2026. The
an amendment signed in 2021. Because the residual value of
weighted average amortization period for trademarks, licens-
the intangible asset exceeds its carrying value, the asset is
es and other intangible assets with finite lives are 18 years, 15
not being amortized.
years and 2 years, respectively, and 14 years on average.
The Company reviews intangible assets with indefinite
(9) Accrued Expenses
lives for impairment whenever events or changes in circum-
Accrued expenses consist of the following:
stances indicate that the carrying amount may not be recov-
erable. There was an impairment charge for trademarks with
Year Ended December 31,
indefinite useful lives of $2.4 million in 2021 relating to our
Advertising liabilities
Rochas fashion business. The fair values used in our evalu-
Salary (including bonus
ations are estimated based upon discounted future cash flow
and related taxes)
projections using a weighted average cost of capital of 7.47%,
Royalties
6.99%, and 7.94% as of December 31, 2021, 2020 and 2019, re-
Due vendors (not yet invoiced)
spectively. The cash flow projections are based upon a num-
Retirement reserves
ber of assumptions, including, future sales levels and future
Refund (return) liability
cost of goods and operating expense levels, as well as eco-
Other
nomic conditions, changes to our business model or chang-
es in consumer acceptance of our products which are more
2021 2020
$12,164
$31,215
19,993
19,154
45,707
10,234
5,128
5,246
$136,677
14,605
16,966
31,698
11,889
3,616
4,691
$95,629
subjective in nature. The Company believes that the assump-
(10) Loans Payable – Banks
tions it has made in projecting future cash flows for the evalu-
Loans payable – banks consist of the following:
ations described above are reasonable and currently no other
The Company and its domestic subsidiaries have available a
impairment indicators exist for our indefinite-lived assets.
$20 million unsecured revolving line of credit due on demand,
However, if future actual results do not meet our expecta-
which bears interest at the daily Secured Overnight Financing
tions, the Company may be required to record an impairment
Rate (“SOFR”) plus 2% (the SOFR was 0.05% as of December 31,
charge, the amount of which could be material to our results
2021). The line of credit which has a maturity date of December
of operations.
16, 2022, is expected to be renewed on an annual basis. Bor-
The cost of trademarks, licenses and other intangible
rowings outstanding pursuant to lines of credit were zero as of
assets with finite lives is being amortized by the straight-
December 31, 2021 and 2020.
line method over the term of the respective license or the
The Company’s foreign subsidiaries have available credit
intangible assets estimated useful life which range from
lines, including several bank overdraft facilities totaling ap-
three to twenty years. If the residual value of a finite life in-
proximately $28 million. These credit lines bear interest at
tangible asset exceeds its carr ying value, then the asset is
EURIBOR plus between 0.5% and 0.8% (EURIBOR was minus
not amortized. The Company reviews intangible assets with
0.570% at December 31, 2021). Borrowings outstanding pursu-
finite lives for impairment whenever events or changes in
ant to these bank overdraft facilities were zero as of December
circumstances indicate that the carr ying amount may not be
31, 2021 and 2020.
recoverable.
As there were no borrowings outstanding as of December
Trademarks (finite lives) primarily represent Lanvin brand
31, 2021 and 2010, there is no weighted average interest rate on
names and trademarks and in connection with their pur-
short-term borrowings as of December 31, 2021 and 2020.
notes to consolidated financial statements
(in thousands, except share and per share data)
87
(11) Long-term Debt
Long-term debt consists of the following:
Year Ended December 31
2021
$135.9 million payable in 120 equal monthly installments of $1.1 million
beginning in April 2021, bearing interest at one-month Euribor plus 0.75% $124,375
$15.0 million payable in 14 equal annual installments of $1.1 million
beginning in January 2021 including interest imputed at 4.1% per annum
$17 million payable in 10 equal annual installments of $1.7 million
beginning in October 2021 including interest imputed at 2.0% per annum
$13.4 million term loan amended such that the loan was repaid in February 2021
plus interest at 0.85% per annum
Less current maturities
Total
10,569
13,869
-
$148,813
15,911
$132,902
2020
$-
11,208
-
13,498
$24,706
14,570
$10,136
In April 2021, to finance the acquisition of Interparfums SA’s future corporate headquarters, the Company entered into a $135.9
million (€120 million) ten-year credit agreement. Approximately $90.6 million (€80.0 million) of the variable rate debt was swapped
for variable interest rate debt with maximum rate of 2% per annum. The swap is a derivative instrument and is therefore recorded
at fair value and changes in fair value are reflected in the accompanying consolidated statements of income.
Maturities of long-term debt subsequent to December 31, 2021 are approximately $15.9 million in 2022 and $16.4 million per
year thereafter through 2033.
(12) Commitments
Leases
In determining lease asset value, the Company considers fixed
or variable payment terms, prepayments, incentives, and op-
tions to extend or terminate, depending on the lease. Renewal,
termination or purchase options affect the lease term used for
determining lease asset value only if the option is reasonably
certain to be exercised. The Company generally uses its incre-
2021 are as follows:
(in thousands)
2022
2023
2024
2025
2026
Maturities of lease liabilities subsequent to December 31,
mental borrowing rate based on information available at the
Thereafter
lease commencement date for the location in which the lease
$37,912
is held in determining the present value of lease payments.
Less imputed interest (based on 3,0%
As of December 31, 2021, the weighted average remaining
weighted-average discount rate) (2,679)
lease term was 6.1 years and the weighted average discount
$35,233
rate used to determine the operating lease liability was 2.5%.
Rental expense related to operating leases was $8.2 million,
$6.2 million, and $7.5 million for the years ended December 31,
License Agreements
The Company is party to a number of license and other agreements
2021, 2020 and 2019, respectively. Operating lease payments in-
for the use of trademarks and rights in connection with the manu-
cluded in operating cash flows totaled $7.5 million and noncash
facture and sale of its products expiring at various dates through
additions to operating lease assets totaled $12.2 million.
2033. In connection with certain of these license agreements, the
$6,541
6,776
5,787
4,704
4,087
10,017
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
88
Company is subject to minimum annual advertising commitments,
million, $1.7 million and $1.4 million in 2021, 2020 and 2019,
minimum annual royalties and other commitments as follows:
respectively. Compensation cost, net of estimated forfeitures,
2022
2023
2024
2025
2026
Thereafter
is recognized on a straight-line basis over the requisite service
$191,422
period for the entire award. Forfeitures are estimated based
206,241
202,774
199,770
136,776
702,780
$1,639,763
on historic trends. It is generally the Company’s policy to issue
new shares upon exercise of stock options.
The following table sets forth information with respect to
nonvested options for 2021:
Weighted Average Grant Date
Number of Shares Fair Value
Future advertising commitments are estimated based on
Nonvested options
planned future sales for the license terms that were in effect
– beginning of year
at December 31, 2021, without consideration for potential re-
Nonvested options granted
newal periods. The above figures do not reflect the fact that our
Nonvested options vested
353,790
9,000
$12.96
$11.35
distributors share our advertising obligations. Royalty expense
or forfeited
(153,280) $12.19
included in selling, general, and administrative expenses, ag-
Nonvested options
gregated $69.0 million, $41.1 million and $53.0 million, in 2021,
-end of year
209,510 $13.45
2020 and 2019, respectively, and represented 7.8%, 7.6% and
7.4% of net sales for the years ended December 31, 2021, 2020
The effect of share-based payment expenses decreased
and 2019, respectively.
income statement line items as follows:
(13) Equity
Share-Based Payments:
Year Ended December 31,
2021
2020 2019
Income before
The Company maintains a stock option program for key em-
income taxes
$2,850
$3,030
$3,390
ployees, executives and directors. The plans, all of which have
Net Income attributable
been approved by shareholder vote, provide for the granting of
to Inter Parfums, Inc.
1,880
2,040
2,060
both nonqualified and incentive options. Options granted under
Diluted earnings per share
the plans typically have a six-year term and vest over a four to
attributable to
five-year period. The fair value of shares vested aggregated $1.4
Inter Parfums, Inc.
0.06
0.06
0.07
The following table summarizes stock option activity and related information for the years ended December 31, 2021, 2020 and 2019:
Year Ended December 31, 2021 2020 2019
Weighted Average Weighted Average Weighted Average
Options Exercise Price
Options Exercise Price
Options Exercise Price
Shares under option-
beginning of year
Options granted
Options exercised
Options forfeited
Shares under option-
713,210
9,000
(156,490)
(40,820)
$52.74
62.18
34.46
62.57
815,800
9,000
(95,570)
(16,020)
$49.89
69.11
28.99
58.38
776,171
194,050
(130,891)
(23,530)
$41.33
72.89
34.06
45.48
end of year
524,900
$57.58
713,210
$52.74
815,800
$49.89
notes to consolidated financial statements
(in thousands, except share and per share data)
89
At December 31, 2021, options for 612,535 shares were available for future grant under the plans. The aggregate intrinsic value
of options outstanding is $25.9 million as of December 31, 2021 and unrecognized compensation cost related to stock options out-
standing aggregated $2.9 million, which will be recognized over the next five years.
The weighted average fair values of options granted by Inter Parfums, Inc. during 2021, 2020 and 2019 were $11.35, $12.16 and
$14.14 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value.
The assumptions used in the Black-Scholes pricing model are set forth in the following table:
Year Ended December 31,
Weighted average expected stock-price volatility
Weighted average expected option life
Weighted average risk-free interest rate
Weighted average dividend yield
2021
25%
5.0 yrs
0.4%
1.6%
2020
25%
5.0 yrs
1.4%
2.5%
2019
25%
5.0 yrs
1.7%
2.0%
Expected volatility is estimated based on historic volatility of the Company’s common stock. The expected term of the option is
estimated based on historic data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of
the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors would
maintain its current payout ratio as a percentage of earnings.
Proceeds, tax benefits and intrinsic value related to stock options exercised were as follows:
Year Ended December 31,
Proceeds from stock options exercised
Tax benefits
Intrinsic value of stock options exercised
2021
$5,393
$1,300
$7,800
2020
$2,771
$400
$2,873
2019
$4,458
$690
$4,520
The following table summarizes additional stock option information as of December 31, 2021:
Options Outstanding
Weighted Average
Exercice Price Options Outstanding Contractual Life Options Exercisable
$32.83 - $33.95
$40.15 - $46.90
$65.18 - $69.11
$73.09
Totals
81,190
123,130
164,940
155,640
524,900
0.99 years
1.94 years
3.03 years
4.00 years
2.75 years
81,190
90,790
84,790
58,620
315,390
As of December 31, 2021, the weighted average exercise price of options exercisable was $52.23 and the weighted average re-
maining contractual life of options exercisable is 2.35 years. The aggregate intrinsic value of options exercisable at December 31,
2021 is $17.2 million.
In December 2018, Interparfums SA approved a plan to grant an aggregate of 26,600 shares of its stock to employees with no
performance condition requirement, and an aggregate of 133,000 shares to officers and managers, subject to certain corporate
performance conditions. The shares, subject to adjustment for stock splits, will be distributed in June 2022.
In March 2020, due to the potential impact on future net sales and operating results resulting from the COVID-19 pandemic,
the estimated number of shares to be distributed, after forfeited shares, was reduced from 142,571 to 82,162. As the Company had
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
90
already purchased shares in contemplation of the higher anticipated distribution, shares purchased in excess of the reduced antic-
ipated distribution were transferred to treasury shares at the Interparfums SA level.
The fair value of the grant had been determined based on the quoted stock price of Interparfums SA shares as reported by the
NYSE Euronext on the date of grant. The original cost of the grant was approximately $4.4 million, and the March 2020 revaluation
resulted in a reduction of the cost, to approximately $2.5 million.
In June 2020, the performance conditions were modified affecting 96 employees. As of December 31, 2021, the number of
shares to be distributed, after forfeited shares, increased to 172,343. The increase in shares anticipated to be distributed were
transferred from treasury shares at the Interparfums SA level. The modification resulted in a revised cost of the grant to ap-
proximately $4.6 million.
In order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed or to be distributed pursuant to
these plans are pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA.
All share purchases and issuances have been classified as equity transactions on the accompanying balance sheet.
Dividends
In October 2019, our Board of Directors authorized a 20% increase in the annual dividend to $1.32 per share on an annual basis.
In April 2020, as a result of the uncertainties raised by the COVID-19 pandemic, the Board of Directors authorized a temporary
suspension of the annual cash dividend. In February 2021, the Board of Directors authorized a reinstatement of an annual divi-
dend of $1.00 payable quarterly. In February 2022, the Board of Directors authorized a 100% increase in the annual dividend to
$2.00 per share. The next quarterly cash dividend of $0.50 per share is payable on March 31, 2022 to shareholders of record on
March 15, 2022.
(14) Net Income Attributable to Inter Parfums, Inc. Common Shareholders
Net income attributable to Inter Parfums, Inc. per common share (“basic EPS”) is computed by dividing net income attributable to
Inter Parfums, Inc. by the weighted average number of shares outstanding. Net income attributable to Inter Parfums, Inc. per share
assuming dilution (“diluted EPS”), is computed using the weighted average number of shares outstanding, plus the incremental
shares outstanding assuming the exercise of dilutive stock options using the treasury stock method.
The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows:
Year Ended December 31,
Numerator for diluted earnings per share
Denominator:
Weighted average shares
Effect of dilutive securities: stock options
Denominator for diluted earnings per share
Earnings per share:
Net income attributable to Inter Parfums, Inc.
common shareholders:
Basic
Diluted
2021
$87,411
2020 2019
$60,249
$38,219
31,676,796
158,612
31,835,408
31,536,659
117,885
31,654,544
31,451,093
237,607
31,688,700
$2.76
$2.75
$1.21
$1.21
$1.92
$1.90
Not included in the above computations is the effect of anti-dilutive potential common shares, which consist of outstanding op-
tions to purchase 175,000, 450,000, and 183,000 shares of common stock for 2021, 2020, and 2019, respectively.
notes to consolidated financial statements
(in thousands, except share and per share data)
91
(15) Segments and Geographical Areas
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 assets are located,
and operations are primarily conducted, in France. Both European and United States operations primarily represent the sale of
prestige brand name fragrances.
Information on the Company’s operations by segments is as follows:
Year Ended December 31,
Net sales:
2021
2020
2019
United States
Europe
$216,559
663,290
Eliminations of intercompany sales (333)
$879,516
$117,489
422,947
(1,427)
$539,009
$173,522
542,226
(2,234)
$713,514
Net income attributable to Inter Parfums, Inc.:
United States
Europe
Eliminations
Depreciation and amortization expense
including impairment loss:
United States
Europe
Interest and investment income:
United States
$29,359
57,869
183
$87,411
$3,835
8,863
$12,698
$3
3,526
$7,942
30,241
36
$38,219
$3,354
5,713
$9,067
$19,365
40,840
44
$60,249
$3,088
5,641
$8,729
$24
$345
3,501
Europe
Eliminations (126) (130) (153)
$3,693
2,971
$2,865
$3,403
Interest expense:
United States
Europe
Eliminations
Income tax expense:
United States
Europe
Eliminations
$636
2,315
(126)
$2,825
$673
$604
1,496
1,626
(130) (153)
$2,146
$1,970
$1,590
$3,945
$5,336
35,607 17,782 25,101
30
49
$40,992
9
$19,381
$29,076
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
92
Segments and Geographical Areas continued
Year Ended December 31,
Total assets:
United States
Europe
Eliminations
Additions to long-lived assets:
United States
Europe
Total long-lived assets:
United States
Europe
Deferred tax assets:
United States
Europe
Eliminations
2021
2020
2019
$247,703
931,735
(34,074)
$1,145,364
$2,711
138,563
$141,274
$63,094
334,033
$397,127
$870
7,066
-
$7,936
$166,180
$141,316
758,812
670,657
(9,983) (8,005)
$828,832
$890,145
$1,004
11,259
$12,263
$40,656
217,766
$258,422
$886
7,106
49
$8,041
$5,851
5,643
$11,494
$44,473
196,976
$241,449
$705
7,241
58
$8,004
United States export sales were approximately $126.2 million, $71.5 million and $112.0 million in 2021, 2020 and 2019, respective-
ly. Consolidated net sales to customers by region are as follows:
Year Ended December 31,
North America
Europe
Asia
Middle East
Central and South America
Other
Consolidated net sales to customers in major countries are as follows:
Year Ended December 31,
United States
France
Russia
United Kingdom
(16) Income Taxes
2021
$354,100
271,600
128,000
61,000
56,400
8,400
$879,500
2021
$351,300
$44,000
$43,400
$38,500
2020
$193,500
180,200
79,700
46,800
32,500
6,300
2019
$235,500
240,800
110,900
72,600
46,200
7,500
$539,000
$713,500
2020
$187,300
$37,600
$14,100
$24,600
2019
$225,300
$43,500
$36,800
$35,800
The Company and its subsidiaries file income tax returns in the U.S. federal, and various states and foreign jurisdictions.
The Company assessed its uncertain tax positions and determined that it has no material uncertain tax position at December
31, 2021.
The components of income before income taxes consist of the following:
notes to consolidated financial statements
(in thousands, except share and per share data)
93
Year Ended December 31,
U.S. operations
Foreign operations
2021
$34,742
116,277
2020
$9,577
59,772
81,762
$151,019 $69,349 $105,146
2019
$23,384
Valuation allowances have been provided for deferred tax
assets relating to foreign net operating loss carry-forwards
and reserves acquired in connection with the acquisition of In-
terparfums Italia srl, as future profitable operations from cer-
tain foreign subsidiaries might not be sufficient to realize the
The provision for current and deferred income tax expense
full amount of the deferred tax assets.
(benefit) consists of the following:
No other valuation allowances have been provided as man-
Year Ended December 31,
2021
2020
2019
will be realized in the reduction of future taxable income.
agement believes that it is more likely than not that the asset
Current:
Federal
State and local
Foreign
Deferred:
Federal
State and local
Foreign
Total income
tax expense
$4,825
518
36,164
$1,685
90
17,024
$41,507 $18,799
$3,280
713
27,412
$31,405
4
11
(530)
(515)
(215)
44
753
582
(3)
(22)
(2,304)
(2,329)
The Company estimated of the effect of global intangible
low-taxed income (“GILTI”) and has determined that it has no
tax liability related to GILTI as of December 31, 2021, 2020 and
2019. The Company also estimated the effect of foreign de-
rived intangible income (“FDII”) and recorded a tax benefit of
approximately $0.9 million, $0.3 million and $0.9 million as of
December 31, 2021, 2020 and 2019, respectively.
French Tax Settlement
The French authorities had considered that the existence of IP
Suisse, a wholly-owned subsidiary of Interparfums SA, does
$40,992 $19,381
$29,076
not, in and of itself, constitute a permanent establishment and
therefore Interparfums, SA should pay French taxes on all or
The tax effects of temporary differences that give rise to
part of the profits of that entity. In June 2021, a global settlement
significant portions of the deferred tax assets and deferred tax
agreement was reached with the French Tax Authority whereby
liabilities are as follows:
Interparfums SA paid in December 2021, €2.5 million (approxi-
December 31,
Deferred tax assets:
Foreign net operating loss
carry-forwards
Inventory and accounts receivable
Profit sharing
Stock option compensation
Effect of inventory profit
elimination
Other
Total gross deferred
tax assets, net
Valuation allowance
Net deferred tax assets
Deferred tax liabilities (long-term):
Building expenses
Trademarks and licenses
Unrealized gain on marketable
equity securities
Other
Total deferred tax liabilities
Net deferred tax assets
2021
2020
ty rate charged by IP Suisse for the periods from 2017 through
mately $2.9 million) effectively lowering the Lanvin brand royal-
2020. Interparfums SA also agreed to apply the lower rate in
2021 through 2025 and to transfer the Lanvin brand from IP
Suisse to Interparfums, SA by December 31, 2025.
The Company is no longer subject to U.S. federal, state,
and local income tax examinations by tax authorities for years
$360
1,928
2,936
718
before 2017.
$1,292
4,508
3,787
732
5,112
407
4,443
910
15,838
(3,582)
12,256
11,295
(360)
10,935
Differences between the United States federal statutory in-
come tax rate and the effective income tax rate were as follows:
Year Ended December 31,
Statutory rates
State and local taxes,
2021
21.0%
2020
21.0%
2019
21.0%
net of Federal benefit
0.3
0.2
0.6
Windfall benefit from
(1,082)
(2,551)
-
(2,894)
exercise of stock options (0.9)
Benefit of Foreign Derived
(0.6)
(0.7)
Intangible Income
(0.6)
(0.4)
(0.9)
Effect of foreign taxes greater
-
-
(436)
(251)
(4,320)
$7,936
(2,894)
$8,041
Other
Effective rates
than U.S. statutory rates
7.4
(0.1)
27.1%
7.5
0.2
27.9%
7.5
0.1
27.6%
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
94
notes to consolidated financial statements
(in thousands, except share and per share data)
(17) Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive loss consist of the following:
Year Ended December 31,
Net derivative instruments,beginning of year
Net derivative instrument gain (loss), net of tax
Net derivative instruments end of year
Cumulative translation adjustments,beginning of year
Translation adjustments
Cumulative translation adjustments, end of year
Accumulated other comprehensive loss
(18) Net Income Attributable to Inter Parfums, Inc.
and Transfers from the Noncontrolling Interest
2021
$-
(992)
(992)
(5,997)
(31,443)
(37,440)
$(38,432)
2020
$52
(52)
-
(39,905)
33,908
(5,997)
$(5,997)
2019
$136
(84)
52
(33,786)
(6,119)
(39,905)
$(39,853)
Year Ended December 31,
Net income attributable to Inter Parfums, Inc.
Decrease in Inter Parfums, Inc.’s additional paid-in capital
for subsidiary share transactions
Change from net income attributable to Inter Parfums, Inc.
2021
$87,411
2020
$38,219
2019
$60,249
-
-
(5,167)
and transfers from noncontrolling interest
$87,411
$38,219
$55,082
(19) Reconciliation of Cash and Cash Equivalents
to the Statement of Cash Flows
The following table summarizes cash and cash equivalents as of December 31, 2021:
Year Ended December 31,
Cash and cash equivalents per balance sheet
Cash held in escrow included in other assets (see note 3)
Cash and cash equivalents per statement of cash flows
$159,613
8,774
$168,387
corporate and market information
95
the market for our common stock
Our Company’s common stock, $.001 par value per share, is traded
April 2020, as a result of the uncertainties raised by the COVID-19
pandemic, the Board of Directors authorized a temporary suspen-
on The Nasdaq Global Select Market under the symbol “IPAR”. The
sion of the annual cash dividend. In February 2021, our Board of
following table sets forth in dollars, the range of high and low clos-
Directors authorized a reinstatement of an annual dividend of $1.00,
ing prices for the past two fiscal years for our common stock.
payable quarterly. In February 2022, our Board of Directors autho-
High Closing Low Closing
Fiscal 2021 Price Price
75.89
Fourth Quarter
67.55
69.96
59.17
106.90
79.42
77.95
76.75
Second Quarter
Third Quarter
First Quarter
High Closing Low Closing
Fiscal 2020 Price Price
36.63
Fourth Quarter
61.08
rized a 100% increase in the annual dividend to $2.00 per share. The
next quarterly cash dividend of $0.50 per share is payable on March
31, 2022, to shareholders of record on March 15, 2022.
Form 10-K
A copy of the company’s 2021 Annual Report on Form 10-K, as
filed with the Securities and Exchange Commission, is available
without charge to shareholders upon request (except for exhib-
its) To: Inter Parfums, Inc. 551 Fifth Avenue New York, NY 10176
Attention: Corporate Secretary.
Third Quarter
Second Quarter
First Quarter
49.40
51.68
75.00
36.46
37.63
34.20
Corporate Performance Graph
The following graph compares the performance for the periods
indicated in the graph of our common stock with the performance
of the Nasdaq Market Index and the average performance of
As of February 8, 2022, the number of record holders, which
a group of the Company’s peer corporations consisting of: CCA
include brokers and broker nominees, etc., of our common
Industries, Inc., Colgate-Palmolive Co., Estée Lauder Companies,
stock was 32. We believe there are approximately 15,700 bene-
Inc., Inter Parfums, Inc., Kimberly Clark Corp., Natural Health
ficial owners of our common stock.
Trends Corp., Procter & Gamble Co., Revlon, Inc., Stephan Co.,
Dividends
In October 2019, our Board of Directors authorized a 20% increase
sumes that the value of the investment in our common stock and
each index was $100 at the beginning of the period indicated in the
in the annual dividend to $1.32 per share on an annual basis. In
graph, and that all dividends were reinvested.
Summer Infant, Inc. and United Guardian, Inc. The graph as-
COMPARISON 0F 5 YEAR CUMULATIVE TOTAL RETURN*
Among Inter Parfums, Inc., The NASDAQ Composite Index, and a Peer Group
Inter Parfums, Inc.
NASDAQ Composite
Peer Group
*$100 invested on 12/31/16 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.
Below is the list of the data points for each year that corresponds to the lines on the above graph.
Inter Parfums, Inc.
NASDAQ Composite
Peer Group
12/16
100.00
100.00
100.00
12/17
135.07
129.64
117.42
12/18
207.10
125.96
120.74
12/19
233.46
172.17
116.63
12/20
195.51
249.51
160.22
12/21
349.98
304.85
225.46
INTERPARFUMS, INC. 2021 ANNUAL REPORTINTERPARFUMS, INC. 2021 ANNUAL REPORT
96
directors and executive officers
DIRECTORS AND EXECUTIVE OFFICERS
Directors
Jean Madar
Michel Dyens
Frédéric Garcia-Pelayo
Chairman, and Chief Executive Officer,
Directeur Général Délégué
Chief Executive Officer,
Michel Dyens & Co.
and Chairman of the Board of Directors
Executive Vice President
Chief International Officer
Inter Parfums, Inc.
Véronique Gabai-Pinsky
Interparfums SA
Philippe Benacin
President of Startup Specialty
Fragrance Company and Former
President, and Vice Chairman of the
President, Vera Wang Group
Board of Directors, Inter Parfums, Inc.
Chief Executive Officer,
Interparfums SA
Russell Greenberg
Executive Vice President,
and Chief Financial Officer
Inter Parfums, Inc.
Philippe Santi
Executive Vice President
Chief Financial Officer
Interparfums SA
Corporate Information
Inter Parfums, Inc.
551 Fifth Avenue
New York, NY 10176
Gilbert Harrison
Chairman, Harrison Group, Inc.
Tel. (212) 983-2640
Founder and Chairman Emeritus
www.interparfumsinc.com
Financo LLC
Executive Officers
Jean Madar
Chief Executive Officer,
European Operations
Interparfums SA
10 rue de Solferino
75007 Paris, France
and Chairman of the Board of Directors
Tel. (1) 53-77-00-00
Inter Parfums, Inc.
Philippe Benacin
Interparfums Italia, Srl
Piazza della Repubblica, 6
President, and Vice Chairman of the
50123 Firenze, Italy
Francois Heilbronn
Board of Directors, Inter Parfums, Inc.
Managing Partner M.M. Friedrich,
Chief Executive Officer,
Auditors
Heilbronn & Fiszer
Interparfums SA
Robert Bensoussan-Torres
Russell Greenberg
Co-founder of Sirius Equity,
Executive Vice President,
Mazars USA, LLP
135 West 50th Street
New York, NY 10020
a retail and branded luxury goods
and Chief Financial Officer
Transfer Agent
investment company
Inter Parfums, Inc.
American Stock Transfer
Patrick Choël
Philippe Santi
Business Consultant and Former
Executive Vice President
President and Chief Executive Officer
Chief Financial and Legal Officer
Parfums Christian Dior
Interparfums SA
and the LVMH Perfume and
Cosmetics Division
and Trust Company
6201 15th Avenue
Brooklyn, NY 11219