Inter Parfums Stock Tumbles on Weak Sales and Slashed Profit Outlook

Shares of Inter Parfums (IPAR) plunged in Tuesday trading after the fragrance maker reported a decline in first-half sales and sharply reduced its profitability guidance, signaling persistent challenges for the remainder of the year. The stock dropped 8.7% to trade at €23.80 on the Paris stock exchange, approaching its 52-week low.

Disappointing Half-Year Results

The sell-off was triggered by the company's first-half 2026 sales results, which were released before the market open. The report revealed figures that fell short of market expectations, leading to a broad-based decline in the stock.

Key figures from the report include:

• First-half revenue: A decline of 7.3% on a reported basis.
• Constant currency sales: A contraction of 3.7%.

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Inter Parfums noted that the ongoing conflict in the Middle East created a 2% headwind to its first-half revenues. Sales in Western Europe were particularly weak, collapsing by 17% in reported terms.

Profitability and Outlook Cut

Compounding the revenue miss, Inter Parfums issued a stark warning on profitability. Management now expects the operating margin for the first half of 2026 to be between 19% and 20%, a significant deterioration from the 23.2% margin recorded in the same period of 2025.

For the full year, the company guided to a "moderate" revenue decline, forecasting sales in the range of €850 million to €870 million. This implies an approximate 3% contraction at constant exchange rates compared to 2025, underscoring investor concerns that the company's current transitional phase may be more prolonged than previously anticipated.