Interparfums, Inc.

Greetings and welcome to the Interpol Fund's first quarter 2025 conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Karen Daly, Vice President at the Equity Group and Interpump Foom's Investor Relations Representative. Please go ahead, Karen.

Thank you, Kevin. Joining us on the call today will be Chairman and Chief Executive Officer Jean Madar and Chief Financial Officer Michelle Atwood. On behalf of the company, I would like to note that this conference call may contain forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from projected results. These factors may be found in the company's filings with the Securities and Exchange Commission under the headings forward-looking statements and risk factors. Forward-looking statements speak only as of the date on which they are made, and Interparfums undertakes no obligation to update the information discussed. As a reminder, Interparfums consolidated results include two business segments. European-based operations through Interparfums SA, the company's 72% owned French subsidiary, and United States-based operations. It's now my pleasure to turn the call over to Jean Madar. Jean?

Thank you, Karin. Good morning, everyone, and thank you for joining us on today's call. We started the year on a strong note with our reported net sales increasing by 5% or 7% on a like-for-like basis. Three of our top brands, Coach, Jimmy Choo, and Donna Karan DTNY, performed exceptionally well, as did our newest brands, Lacoste and Cavalli, in their second year under our management. We also launched several compelling fragrances that contributed to our results. And we have many more scents to unveil for the balance of the year. Our prestige brand portfolio, robust distribution network, and agile business model have positioned us well to deliver strong and encouraging results. The flexibility of our supply chain allows us to respond swiftly during challenging periods to minimize potential disruptions and to consistently maintain our service level and competitive position. Fragrance stands out within the beauty industry for its resilience, driven by strong brand loyalty and its appeal as an accessible luxury, especially appreciated during times when consumers are more selective with their spending. Our top brands continue to drive growth at our European-based operations. Jimmy Choo's legacy franchises, I Want You and Jimmy Choo Man, which included the introduction of Jimmy Choo Man Extreme, performed exceptionally well. The new Coach Men extension, Men Eau de Parfum, with NBA superstar Jason Tatum as the new face of Coach fragrances, drove Coach growth. Heightened demand for lacrosse fragrance continued in early 2025 as well. As for Montblanc, sales are down compared to the prior year period as a result of the timing of innovation, but we are confident that the brand will achieve more favorable comparisons for the balance of the year with the upcoming launch of Explorer Extreme as a catalyst. For our United States-based operations, net sales rose 3% on a like-for-like basis, on top of 11% organic sales growth during the 2024 first quarter. Donacaran DKNY fragrance sales rose by 5%, resulting from the continued strength of our Kashmir Mist franchise. Although we continue to expect sales gain in the full year, fragrance sales declined slightly during the quarter given the high bar set in the prior year period when the brand grew by 21%. With consumer demand for high quality and concentrated scents showing no signs of lifting up, We continue to roll out new fragrances that appeal to their preferences, including the recent launches of Ferragamo Fiamma, our first blockbuster launch for the brand, which debuted at the very end of March, expressing the modern femininity in Ferragamo's first place, Florence, Italy. And we also notice Lacoste Launch, L1212 Silver, and Silver Rose. We will also introduce a new blockbuster for Roberto Cavalli in June called Certain Time. We have a strong lineup of fragrance extensions for many brands, including all our largest brands, Jimmy Choo, Montblanc, Coach, Guess, Donna Karan, Ferragamo, and Lacoste. Plus, we will be adding a new extension for Kate Spade, Rochas, Lagerfeld, and Van Cleef families. As we look ahead, We are continuing to strategically refine our brand portfolio to build an exceptional group of brands that further solidifies our position in the prestige and luxury categories. that sometimes calls for exiting the license agreements with some of our smaller or underperforming brands. These brands represent a small portion of our overall portfolio, and our focus is on offsetting their exit by continuing to grow our existing portfolio while adding new, high-potential brands that better align with our long-term growth strategy. This is already in the works as we are preparing to launch our own brand called Solferino in July. And as we mentioned on our last call, we will assume full ownership of all Off-White brand names and register trademarks in 2026. In addition, we announced the acquisition of the Annick Guttal brand in March, which is also set to officially join our portfolio in 2026. Planning is already well underway for both Off-White and Guttal, with exciting developments to be unveiled in the months ahead. As a testament to the strength of our brand partnership, we renewed our coach license for another five years through June, 2031. Before I turn it over to Michel, I would like to briefly mention a few key operational updates. In terms of our omni-channel capabilities, we sell directly to many retailers in key markets such as France, the United States, and Italy. This direct model delivers higher margins compared to wholesale distribution, though our wholesale partners remain essential for achieving broader market reach and will continue to be a vital part of our strategy. E-commerce, as you know, is an increasingly important and fast-growing part of our business. driven by the ongoing digital shift in consumer behavior, with strong performance and expanding our presence on Amazon, while platforms like Divabox and TikTok Shop continue to gain traction, powered by the reach and engagement of our content creators and influencers across social media platforms. Regarding our supply chain, streamlining our operation is more critical than ever, and as mentioned also on our previous call, we are making significant progress in transitioning out of our own operated facility in Dayton, New Jersey. By the second half of 2025, we expect to fully utilize third-party logistics companies for packing, shipping, warehousing, and order fulfillment. This strategic shift will reduce overhead costs and enhance our agility, enabling us to better respond to consumer needs and market dynamics. The key area of interest is, of course, tariff. Me and Michel will answer some of your questions later. We are actively scenario planning and beginning to implement strategies to mitigate the potential impact of a recent tariff on our business through three key interventions. Firstly, we are looking to try to better align our supply chain footprint to the countries where the products are sold. This means producing in Europe fragrances that sell in Europe, producing in the US fragrances that sell in the US. Some of these changes will be quick, while others will take, of course, more time. Secondly, we are identifying alternative sourcing for some of the parts, components like plastic and metal that we still purchase from China and need to import into the U.S. Thirdly, we are considering implementing mid-single-digit price increases on select brands and regions this summer, aligned with but less aggressive and broader industry trends as a way to offset the additional costs we will inevitably not be able to fully mitigate. Our game plan is clear, but we will adjust our executions once we have more certainty of how tariffs will evolve after this 90-day moratorium. Overall, we do not view these factors as posing a material risk to the company. While we navigate the current macro environment, the global fragrance market remains strong and we are well positioned to deliver on our goals for the year. We are focused on making continued progress on all fronts of our business, from sales and earnings to ESG scores. Among these objectives is to improve our MSCI score. We have steadily been improving and recently moved up to a BBBB rating We also have line of sight to BBB, BBB, which we target to get with the next major rating update. I will now turn it over to Michel for a review of our financial results. Michel?