IPAR

Forward Looking Information Statements in this report which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums’ annual report on Form 10-K for the fiscal year ended December 31, 2025, and the reports Interparfums files from time to time with the Securities and Exchange Commission (“SEC”). Interparfums does not intend to and undertakes no duty to update the information contained in this report. Overview We operate in the fragrance business, and manufacture, market and distribute a wide array of prestige fragrances and fragrance related products. We manage our business in two segments, European based operations and United States based operations. Certain prestige fragrance products are produced and marketed by our European based operations through our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company as 28% of Interparfums SA shares trade on the Euronext. We produce and distribute fragrance products through our European based operations primarily under license agreements with brand owners, and European based fragrance product sales represented approximately 70% and 72% of net sales for the six months ended June 30, 2026 and 2025. We have built a portfolio of prestige brands, which include Annick Goutal, Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Longchamp, Moncler, Montblanc, Off-White, Rochas, Solférino and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world. Through our United States based operations, we also produce and distribute fragrance and fragrance related products. United States based operations represented 30% and 28% of net sales for the six months ended June 30, 2026 and 2025, respectively. These fragrance products are sold primarily pursuant to license or other agreements with the owners of the Abercrombie & Fitch, Anna Sui, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta and Roberto Cavalli 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 Coach, Jimmy Choo, Montblanc, GUESS, Lacoste, Donna Karan/DKNY, and Ferragamo brand names. As a percentage of net sales for the six months ended June 30, 2026 and 2025, product sales for the Company’s largest brands represented 81% and 77%, respectively, with a split by brand as follows: Six Months Ended June 30, 2026 2025 Coach 19 % 17 % Jimmy Choo 18 % 17 % Montblanc 16 % 15 % GUESS 11 % 10 % Lacoste 7 % 8 % Donna Karan/DKNY 7 % 6 % Ferragamo 3 % 3 % Page 18 INTERPARFUMS, INC. AND SUBSIDIARIES For the six months ended June 30, 2026, Macy's, our top retail customer, accounted for approximately 10% of net sales. No one customer represented 10% or more of net sales for the six months ended June 30, 2025. 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 directly to retailers in France, the United States, and Italy. We grow our business in two distinct ways. First, we grow by adding new brands to our portfolio, through new licenses or other arrangements, or outright acquisitions of brands. Second, we grow through the introduction of new products and by supporting new and established products through advertising, merchandising and sampling, as well as phasing out underperforming products, so that we can devote greater resources to those products with greater potential. The economics of developing, producing, launching and supporting products influence our sales and operating performance each year. The introduction of new products may have some cannibalizing effect on sales of existing products, which we take into account in our business planning. Our business is not capital intensive, and it is important to note that we do not own manufacturing facilities. We act as a general contractor and source the components we need from our suppliers. These components are received and stored directly at our third party fillers or received at one of our distribution centers. For those components received at one of our distribution centers, based upon production needs, the components are subsequently sent to one of several third party fillers, which manufacture the finished product for us and then deliver them to one of our distribution centers. As with any global business, many aspects of our operations are subject to influences outside our control. We believe we have a strong and well diversified brand portfolio with global reach and potential. As part of our strategy, we plan to continue to make investments behind fast-growing markets and channels to grow market share. Our reported net sales are impacted by changes in foreign currency exchange rates as approximately 50% of net sales of our European based operations are denominated in U.S. dollars, while almost all costs of our European based operations are incurred in euro. We address certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates. Recent Important Events Please see our discussion of Recent Important Events, which is incorporated by reference to Note 2 to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Discussion of Critical Accounting Policies Information regarding our critical accounting policies can be found in our 2025 Annual Report on Form 10-K filed with the SEC. Page 19 INTERPARFUMS, INC. AND SUBSIDIARIES Results of Operations Three and Six Months Ended June 30, 2026 as Compared to the Three and Six Months Ended June 30, 2025 Net Sales: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 % Change 2026 2025 % Change European based product sales $ 231.1 $ 240.5 (4) % $ 483.3 $ 488.4 (1) % United States based product sales 112.8 95.8 18 % 208.9 190.1 10 % Eliminations (2.9) (2.4) n/a (6.3) (5.7) n/a $ 341.0 $ 333.9 2 % $ 685.9 $ 672.8 2 % *n/a = not applicable Net sales for the three months ended June 30, 2026 increased 2% from three months ended June 30, 2025. The average dollar/euro exchange rate for the current second quarter was 1.16 compared to 1.13 in the second quarter of 2025, resulting in a positive foreign exchange impact on net sales of 1% in the three months ended June 30, 2026 as compared to the prior year period. Net sales for the six months ended June 30, 2026 increased 2% as compared to the six months ended June 30, 2025. The average dollar/euro exchange rate for the first six months of 2026 was 1.17 compared to 1.09 in the first six months of 2025, resulting in a positive foreign exchange impact on net sales of 3% in the six months ended June 30, 2026 as compared to the prior year period. The diversity of our overall brand portfolio again showed its strength as we saw strong growth from several of our larger brands which helped offset softness in other brands and geographies. The war in the Middle East, which again weighed on our results, represented a headwind of 3% in the second quarter and 2% for the first six months of the year. Excluding this effect, organic sales increased 4% in the second quarter of 2026 and 1% for the first six months of the year. For European based operations, sales in the three months ended June 30, 2026 decreased 4%, compared to the corresponding period of the prior year, which included an organic decline of 5% partially offset by a 1% positive foreign exchange impact. Net sales in six months ended June 30, 2026 decreased 1%, compared to the corresponding period in the prior year, despite a 3% positive foreign exchange impact. Jimmy Choo sales grew 23% in the second quarter of 2026 and 8% in the first six months of 2026. The brand’s fragrances have continued to gain traction, particularly in the United States. This growth was driven by the continued success of the I Want Choo women’s franchise, launched in 2021, combined with the successful debut of the Jimmy Choo Man Parfum line launched earlier in 2026. Coach fragrance sales declined 8%, in the second quarter of 2026, following a 42% increase in the prior year period. The brand’s sales rose 10% in the first half of 2026 compared to the prior year period driven by strong performance in the United States, its primary market, continued demand across most existing lines, and by the launch of new extensions in the Coach Women and Coach Man franchises earlier in 2026. Montblanc sales remained flat in the second quarter of 2026 and increased 6% in the first six months of 2026 compared to the prior year periods, driven by favorable exchange rates and the ongoing success of the Montblanc Explorer Extreme line and the strength of the Legend franchise, which was enhanced in the first quarter of 2026 with the launch of Montblanc Legend Elixir. We plan to launch a third franchise in 2027, reflecting the Company’s commitment to the brand’s growth through innovation. Fragrance sales of Lacoste declined 19% and 16% in the second quarter of 2026 and the first half of 2026 against a high base in the prior year periods in which sales grew 59% and 44%, respectively, driven by a series of highly successful innovation programs in 2025. Challenges in the Eastern Europe continued to impact the brand’s performance in 2026. We remain confident in the brand's medium and long-term potential ahead of several major initiatives planned for 2027 and 2028. For United States based operations, sales in the three months ended June 30, 2026 increased 18% compared to the corresponding period of the prior year, which included a 1% positive foreign exchange impact, reflecting organic growth of 17% off a high base in 2025. The strong second quarter resulted in an increase in sales in the six months ended June 30, 2026 of 10% compared to the prior year period. This included 8% organic growth and a 2% favorable foreign exchange impact. GUESS fragrance sales rose 10% and 11% in the second quarter and first half of 2026, respectively, compared to the prior year periods. This growth was driven by the ongoing success of the Iconic franchise, supported by the second quarter launch of Iconic Blue, the newest men’s extension within the franchise. Second quarter growth was also supported by the launch of the newest Amore extension, Amore Napoli. Donna Karan/DKNY fragrance sales increased 28% and 12% in the second quarter and first half of 2026, respectively, compared to the prior year periods. The Brand’s sales growth reflected healthy consumer demand across product categories, fragrance franchises, and strengthening momentum across e-commerce channels. Ferragamo fragrance sales increased 41% and 17% in the second quarter and first half of 2026, respectively, compared to the prior year periods. This growth, helped by a weaker prior period comparison, was primarily driven by overall strength of the Signorina line supported by the successful launch of Signorina Romantica, and the Ferragamo line, supported by the launch of Ferragamo Sublime Leather. However, Roberto Cavalli fragrance sales declined 9% in the second quarter of 2026 against a very high base of 23% growth in the prior year period and a challenging macro-economic environment in the Middle East which is the brand’s largest market. Despite this challenging macro environment, sales in the six month ended June 30, 2026 increased 8% compared to the prior year period, driven by new extensions launched earlier this year across multiple franchises as well as the ongoing success of last year’s blockbuster launch of Serpentine. With a rich lineup of fragrance extensions planned, we remain optimistic about the remainder of 2026. Looking ahead to 2027, we continue to be optimistic by the enhanced offerings within our current portfolio of brands, the introduction of new fragrances from recently acquired brands and licenses, and the selective pursuit of incremental brand opportunities. We have a series of blockbuster launches planned for 2027 and 2028, and with the proven strength of our business model, we remain well positioned to continue growing as we navigate a dynamic operating environment. Page 20 INTERPARFUMS, INC. AND SUBSIDIARIES Net Sales to Customers by Region (In millions) Six Months Ended June 30, 2026 2025 North America $ 257.5 $ 245.4 Western Europe 170.2 176.1 Asia/Pacific 104.5 91.8 Central and South America 73.0 63.6 Eastern Europe 42.5 45.8 Middle East and Africa 38.2 50.1 $ 685.9 $ 672.8 In the six months ended June 30, 2026, net sales in our largest market, North America, rose 5% as compared to the prior year period, driven by continued market growth, the launch of several extensions, particularly for Coach, as well as successful marketing and advertising investments, while sales in Western Europe declined 3% due to slower consumer demand. Our sales in Asia/Pacific increased by 14% driven by brand initiatives with Coach and Montblanc and expansion of GUESS in Australia and New Zealand. Our new affiliate in Korea is off to a strong start, and after sluggish sales over the past few years, the business is growing again in the first half of 2026. Central and South America net sales increased 15% due to the success of women’s and men’s Coach franchises and the strength of the Montblanc Legend line. Our net sales in Eastern Europe decreased 7% in the six months ended June 30, 2026 as compared to the prior year period driven by operational difficulties in certain countries, which disproportionately impacted Lanvin and Lacoste. The war in the Middle East has again led to a significant decline in our sales in the Middle East and Africa Region that was down 24%, weighting significantly on our overall results. Gross Profit Margin (in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 European based operations Net sales $ 231.1 $ 240.5 $ 483.3 $ 488.4 Cost of sales 75.2 76.1 157.3 161.5 Gross margin $ 155.9 $ 164.4 $ 326.0 $ 326.9 Gross margin as a % of net sales 67.4 % 68.3 % 67.4 % 66.9 % United States based operations Net sales $ 112.8 $ 95.8 $ 208.9 $ 190.1 Cost of sales 43.3 37.6 82.8 76.6 Gross margin $ 69.5 $ 58.2 $ 126.1 $ 113.5 Gross margin as a % of net sales 61.6 % 60.7 % 60.3 % 59.7 % The Company’s gross profit margin as a percentage of net sales was 65.5% and 65.3% for the three and six months ended June 30, 2026 as compared to 66.2% and 65.0% for the corresponding period of the prior year. The increase was the result of favorable segment, brand and channel mix as well as lower than expected destruction costs. These were partially offset by tariff impacts which represented a net expense of $8.2 million in the six months ended June 30, 2026 as compared to the prior year period. Furthermore, as of June 30, 2026, the company has received $8.7 million in IEEPA tariff refunds, of which $6.9 million have been recognized as a non-recurring reduction in cost of sales. Overall, the Company is expecting approximately $17.6 million in refunds. For European based operations, gross profit margin as a percentage of net sales was 67.4% for the three and six months ended June 30, 2026, as compared to 68.3% and 66.9% for the corresponding period of the prior year, respectively. The decrease in the three months ended June 30, 2026 was the result of unfavorable brand and channel mix, as well as higher costs related to tariffs, partially offset by one time tariff refunds. The increase in the six months ended June 30, 2026 was the result of favorable brand and channel mix, lower destruction costs, as well as $2.7 million of IEEPA tariff refunds. These were partially offset by tariffs, which represented an additional expense of $4.5 million in the six months ended June 30, 2026 as compared to the prior year period. Page 21 INTERPARFUMS, INC. AND SUBSIDIARIES For United States based operations, gross profit margin as a percentage of net sales was 61.6% and 60.3% for the three and six months ended June 30, 2026 respectively, as compared to 60.7% and 59.7% for the corresponding period of the prior year. Tariff refunds representing $4.2 million as well as lower levels of destructions helped offset unfavorable channel and product mix impacts as well as higher ongoing tariff costs. Generally, we do not bill customers for shipping and handling costs, which are included in selling, general and administrative expenses in the consolidated statements of income. As such, our Company’s gross profit may not be comparable to other companies, which may include these expenses as a component of cost of goods sold. Selling, General and Administrative Expenses (in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 European based operations Selling, general and administrative expenses $ 124.6 $ 115.9 $ 229.1 $ 211.9 Selling, general and administrative expenses as a percent of net sales 53.9 % 48.2 % 47.4 % 43.4 % United States based operations Selling, general and administrative expenses $ 50.0 $ 46.0 $ 96.0 $ 90.9 Selling, general and administrative expenses as a percent of net sales 44.2 % 48.0 % 46.0 % 47.8 % The Company’s selling, general and administrative expenses as a percentage of net sales were 51.2% and 47.4% for the three and six months ended June 30, 2026 as compared to 48.5% and 45.0% for the three and six months ended June 30, 2025. The increase in selling, general and administrative expenses as a percentage of net sales in both the quarter and six month period resulted from marketing investments in brands, royalty costs growing ahead of sales driven by unfavorable brand mix as well higher logistics costs related to supply chain transitions and channel mix. For European based operations, selling, general and administrative expenses increased 7.5% and increased 8.1% for the three and six months ended June 30, 2026, respectively as compared to the corresponding period of the prior year, and represented 53.9% and 47.4% of net sales for the three and six months ended June 30, 2026, as compared to 48.2% and 43.4% for the three and six months ended June 30, 2025. The increase in expenses for both periods was largely driven by higher marketing expenses due to the timing of product launches in the second quarter of 2026 as well as investments behind the brands. Royalty costs also grew ahead of sales driven by unfavorable brand mix. Employee related costs expanded as we are building up our Korean subsidiary, and we also saw higher logistics costs related to increased warehouse fees and supply chain transitions. For United States based operations, selling, general and administrative expenses increased 8.6% and increased 5.6% for the three and six months ended June 30, 2026, respectively, as compared to the corresponding period of the prior year, below sales increases, and represented 44.2% and 46.0% of net sales for the three and six months ended June 30, 2026, as compared to 48.0% and 47.8% for the three and six months ended June 30, 2025. Despite higher selling, general and administrative investments overall, the decrease as a percentage of net sales in the three and six month periods were driven by productivity gains behind the accelerated sales growth, which were partially offset by unfavorable brand mix on royalty expenses. Promotion and advertising included in selling, general and administrative expenses aggregated $77.2 million and $128.8 million for the three and six months ended June 30, 2026, respectively, as compared to $68.8 million and $120.4 million for the corresponding period of the prior year and represented 22.6% and 18.8% of net sales for the three and six months ended June 30, 2026, respectively, as compared to 20.6% and 17.9% for the corresponding period of the prior year. Promotion and advertising are integral parts of our industry, and we continue to invest heavily to support new product launches, new brands and to build brand awareness. We believe that our promotion and advertising efforts have a beneficial effect on sales, and as such, the Company is focused on increasing promotional and advertising spending to support the continued success of our brands. We are reinvesting the tariff refunds in order to protect our top line growth and set ourselves up for a successful 2027, as such, we anticipate that on a full year basis, promotion and advertising expenditures will approach our long term target of approximately 21% of net sales. Page 22 INTERPARFUMS, INC. AND SUBSIDIARIES Royalty expense included in selling, general and administrative expenses aggregated $30.9 million and $62.8 million for the three and six months ended June 30, 2026, respectively, as compared to $27.7 million and $55.8 million for the corresponding period of the prior year. Royalty expense represented 9.1% and 9.2% of net sales for the three and six months ended June 30, 2026 as compared to 8.3% of net sales for the corresponding periods of the prior year. This increase was primarily driven by unfavorable brand mix. Income from Operations As a result of the above analysis regarding net sales, gross profit margins and selling, general and administrative expenses, our operating margins aggregated 14.4% and 17.9% for the three and six months ended June 30, 2026, respectively, as compared to 17.7% and 20.0% for the corresponding period of the prior year. Other Income and Expense Overall, other income and expense for the six months ended June 30, 2026, was a gain of $0.4 million as compared to a loss of $6.7 million in the corresponding prior year period. The main drivers of the change are discussed in more detail below. These include the positive impact of the change in foreign currency where we recognized a loss of only $0.2 million in the first half of 2026 compared to a loss of $2.4 million in the first half of 2025. Additionally, we had a gain on interest income related to cash and cash equivalents and short-term investments of $4.4 million and a reduction in interest expense on borrowings of $0.5 million. Interest expense is primarily related to the financing of brand and licensing acquisitions, as well as our headquarters in Paris. Long-term debt including current maturities aggregated $142.8 million and $176.0 million as of June 30, 2026 and December 31, 2025, respectively. Interest expense was $2.6 million in the six months ended June 30, 2026 compared to $3.1 million in the prior year period. We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Approximately 50% of net sales of our European based operations are denominated in U.S. dollars. Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements. Such gains and losses were immaterial in the three and six months ended June 30, 2026 and 2025. Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities. Interest income was $3.0 million in the six months ended June 30, 2026 compared to $2.6 million in the prior year period. Additionally, we recognized gains on marketable equity securities of $0.1 million in the six months ended June 30, 2026 compared a loss of $3.4 million in the six months ended June 30, 2025. Income Taxes Our consolidated effective tax rate was 24.2% and 24.3% for the six months ended June 30, 2026 and 2025, respectively. The Company's effective income tax rate is primarily affected by the geographic mix of earnings among jurisdictions with different statutory tax rates, the benefit associated with the Foreign-Derived Intangible Income ("FDII") deduction, excess tax benefits related to stock-based compensation, state income taxes, and other permanent differences recognized during the period. These items collectively result in the Company's effective tax rate differing from the U.S. federal statutory rate. The company does not have a jurisdictional tax forecast but uses a forecasted tax rate by segment to validate the quarterly effective tax rate. The effective tax rate for our European based operations remained flat at 25.4% for both the six months ended June 30, 2026 and 2025. The effective tax rate for United States based operations was 20.4% for the six months ended June 30, 2026, as compared to 18.8% for the corresponding period of the prior year. Our effective tax rate for United States based operations differs from the 21% statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign-derived deduction-eligible income, slightly offset by state and local taxes. Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate. We also did not have any material discreet tax items this quarter nor significant changes in uncertain tax positions, valuation allowances, tax examinations, or enacted law changes. The Company was notified in June 2026 by the Internal Revenue Service that the Company will undergo an audit for the 2024 tax year. Page 23 INTERPARFUMS, INC. AND SUBSIDIARIES Net Income Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousand USD) Net income attributable to European based operations $ 22,788 $ 32,745 $ 72,649 $ 80,864 Net income attributable to United States based operations 15,457 9,555 23,879 18,223 Eliminations (1,363) (1,103) (2,943) (2,487) Net income 36,882 41,197 93,585 96,600 Less: Net income attributable to the noncontrolling interest 6,395 9,209 19,732 22,120 Net income attributable to Interparfums, Inc. $ 30,487 $ 31,988 $ 73,853 $ 74,480 Net income attributable to Interparfums, Inc. was $30.5 million and $73.9 million for the three and six months ended June 30, 2026, respectively, as compared to $32.0 million and $74.5 million for the corresponding period of the prior year. Net income attributable to European based operations was $22.8 million and $72.6 million for the three and six months ended June 30, 2026, as compared to $32.7 million and $80.9 million for the corresponding period of the prior year, while net income attributable to United States based operations increased to $15.5 million and $23.9 million for the three and six months ended June 30, 2026, as compared to $9.6 million and $18.2 million for the corresponding period of the prior year. The fluctuations in net income for both European based operations and United States based operations are directly related to the previous discussions pertaining to changes in sales, gross margin, and selling, general and administrative expenses. The noncontrolling interest arises from our 72% owned subsidiary in Paris, Interparfums SA, which is also a publicly traded company, as 28% of Interparfums SA shares trade on the Euronext. Net income attributable to the noncontrolling interest is directly related to the profitability of our European based operations and aggregated 28% of European based operations net income for both the six months ended June 30, 2026 and 2025. Net profit margins attributable to Interparfums, Inc. for the six months ended June 30, 2026 and 2025 aggregated 10.8% and 11.1%, respectively. Liquidity and Capital Resources Our conservative financial tradition has enabled us to amass significant cash balances. As of June 30, 2026, we had $211.3 million in cash, cash equivalents and short-term investments, the majority of which are held in euros by our European based operations and is readily convertible into U.S. dollars. We have not experienced 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 June 30, 2026, working capital aggregated $664 million. Approximately 74% of the Company’s total assets are held by European based operations, and approximately $280 million of trademarks, licenses and other intangible assets are also held by European based operations. The Company is party to a number of licenses 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 2049. In connection with most of these license agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments. See Item 8. Financial Statements and Supplementary Data – Note 11 – Commitments in our 2025 annual report on Form 10-K, which is incorporated by reference herein. Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2025, 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 January 2026, we entered into long-term global licensing agreements for the creation, development and distribution of fragrances and fragrance related products under the David Beckham and Nautica brands, effective April 1, 2028 and January 1, 2030, respectively. In July 2025, our 72% owned French subsidiary, Interparfums SA, signed an exclusive fragrance license agreement with Longchamp running through December 31, 2036. Our rights under these licenses are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The first launch under our Longchamp license is expected in 2027. In June 2025, our 72% owned French subsidiary, Interparfums SA, acquired all intellectual property rights relating to Maison Goutal held by Amorepacific Europe, which was operating the Annick Goutal brand under an existing license agreement that expired on December 31, 2025, when Interparfums SA began commercial use of the fragrance brand. Additionally, in June 2025, we renewed the Coach license agreement for an additional five-year term, extending the license through June 30, 2031. Page 24 INTERPARFUMS, INC. AND SUBSIDIARIES Cash provided by operating activities aggregated $45.7 million for the six months ended June 30, 2026 compared to $4.5 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, working capital items used $61.7 million in cash from operating activities, as compared to $108.9 million in the 2025 period. From a cash flow perspective, accounts receivables are down 3% from year end 2025. The balance is reasonable based on 2026 sales levels and seasonality of the business. Days' sales outstanding decreased slightly to 73 days, from 74 days in the corresponding period of the prior year, driven by changes in our channel mix. We continue to see strong collection activity and do not anticipate any issues with collections of accounts receivable. From a cash flow perspective, inventory levels as of June 30, 2026 increased 9% from year end 2025 driven by the seasonality of the business. Despite foreign exchange headwinds, our inventories are down significantly year over year with $376 million at June 30, 2026 compared to $425 million at June 30, 2025, translating to a reduction of 34 days inventory on hand as we continue to drive inventory efficiencies and work to increase conversion of raw materials into finished goods. Operating cash flow also benefited in the six months ended June 30 2026 from the receipt of $8.7 million of IEEPA tariff refunds. The Company has paid an additional $8.9 million of IEEPA tariffs which were not yet refunded at June 30, 2026, of which $8 million was received in July 2026. Cash flows used in investing activities in 2026 are comprised of the net effect of purchases and sales of short-term investments. These investments consist of certificates of deposit with maturities greater than six months, marketable equity securities and other contracts. In March 2025, the Company paid approximately $19.7 million for the purchase of the Annick Goutal trademark. Our business is not capital intensive as we do not own any manufacturing facilities. On a full year basis, what we spend on tools and molds fluctuates depending on our new product development and is typically not material. Capital expenditures also include amounts for office fixtures, computer equipment, and industrial equipment needed at our distribution centers. Cash flows used in financing activities in 2026 predominately reflect repayments of debt and payments of dividends to stockholders. Our short-term financing requirements are expected to be met by available cash on hand at June 30, 2026, and by short-term credit lines provided by domestic and foreign banks. The principal credit facilities for 2026 consist of $45 million in unsecured revolving lines of credit provided by a consortium of domestic commercial banks and approximately $9.1 million (€8 million) in credit lines provided by a consortium of international financial institutions. There was $2.8 million of short-term borrowings outstanding pursuant to these facilities as of June 30, 2026 and $9.4 million outstanding as of June 30, 2025. In February 2025, our Board of Directors authorized an annual dividend to $3.20 per share, and in 2026 our Board of Directors maintained the annual dividend at $3.20 per share. The next quarterly cash dividend of $0.80 per share is payable on September 30, 2026 to shareholders of record on September 15, 2026. We believe that funds provided by or used in operations can be supplemented by our present cash position and available credit facilities, so that they will provide us with sufficient resources to meet all present and reasonably foreseeable future operating needs. Inflation rates in the United States and foreign countries in which we operate did not have a significant impact on operating results for the six months ended June 30, 2026; however, we have already started to see the impacts of tariffs on our cost structure and had adjusted our pricing accordingly in 2025. We continue to monitor for potential inflationary impacts as our suppliers potentially adjust their pricing as well. Page 25 INTERPARFUMS, INC. AND SUBSIDIARIES