By Katherine Hamilton

Shares of Interparfums declined after the company said it expects tariffs and other macroeconomic factors to weigh on its business next year.

The stock retreated 4.5% to $81.94 in after-hours trading Tuesday. Shares hit a 52-week low of $83.13 in the market session and have lost 35% of their value this year.

The perfume distributor, which serves brands such as Coach and Jimmy Choo, expects sales to modestly increase in 2026, as broader macroeconomic challenges and inventory destocking are set to continue next year, Chief Executive Jean Madar said.

Interparfums expects earnings to be $4.85 a share for the year, which would be a 5% decline from its 2025 earnings per share outlook of $5.12. It expects sales of $1.48 billion, a 1% increase from its projected sales for 2025 of $1.48 billion.

Weighing on earnings are tariffs and investments Interparfums is making to develop its new brands Off-White and Longchamp. The company also had a one-time tax gain in 2025, making the year-over-year comparison more challenging.

Interparfums is already looking ahead and aiming to lay the foundation for a better performance 2027. It anticipates macro headwinds will subside late next year and plans to begin distributing some of its new brands in 2027.

"While current market dynamics largely influence a conservative outlook for 2026, we expect 2027 to be a very strong year as we ramp up the distribution of our newest brands," Madar said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

November 18, 2025 18:07 ET (23:07 GMT)

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