Interparfums Shares Plunge 10% Midday After Forecast Revision
The licensed perfume specialist experienced a sharp downturn this Wednesday in the Paris session, falling by 10.06% to settle at 23.96 euros at midday. This drop occurred after the group announced before opening that it expects about 890 million euros in revenue in 2025 at current rates, or 900 million at constant rates, thus revising down for the second time its initial target. The global perfume market, which has modestly grown this year, weighs on the group's outlook, which holds licenses for brands such as Coach, Lacoste, and Jimmy Choo. More concerning, Interparfums has refrained from providing formal forecasts for 2026 due to deteriorating market conditions, tariff pressures, and an investment cycle expected to impact short-term profitability.
Significant Drop Amid Market Challenges
Falling nearly 10% to 23.96 euros around noon, Interparfums thus recorded one of the sharpest declines in the SBF 120, with only 0.17% of capital traded during the session. The stock thus fell to its lowest level in several months, breaking through its support threshold of 26.64 euros established the previous day. This new downgrade is part of a persistent downward trend, with the stock showing a cumulative decline of 13.5% over seven days and 25.13% over three months. Over a year, the underperformance reaches 33.44%, in stark contrast to the 9.35% increase of the CAC 40 over the same period, which also ended slightly down by 0.11% this Wednesday.
The perfume manufacturer has reduced its previously announced 2025 revenue target from about 900 million euros to about 890 million euros, a 1% reduction that comes unusually late in the fiscal year, reflecting a more unfavorable year-end environment than expected, particularly as retailers in key markets continue to reduce their inventories. According to the group, 2026 sales will be impacted by a likely still deteriorated economic and geopolitical environment, a negative euro-dollar parity amounting to about twenty million euros, and an unfavorable comparison base with the end of the Boucheron license contract on December 31, 2025.
Looking Ahead to 2026 and Beyond
Interparfums expects 2026 to be a "forward-looking" year, with line extensions on its current brands and preparations for the first launches for Off-White and Longchamp in 2027, but "the multiplicity of parameters, both favorable and unfavorable" prevents the group from establishing sales forecasts for 2026. Philippe Benacin, CEO, acknowledged that "after several years of very strong growth and a revenue nearly doubled in four years, 2025 sees its growth slowing down", adding that the company is preparing for a very dynamic 2027 with several major launches. Management attributes the pressure on profitability to the postponement of exceptional tax gains recorded in 2025, the impact of tariffs, and investments to support new brands, mainly Off-White and Longchamp, which will not contribute significantly before the start of their distribution in 2027.
Despite the slowdown in revenues, Interparfums remains confident in its ability to maintain an EBIT margin close to 20% for 2025, relying on the flexibility of its operational model characterized by outsourced production and limited fixed costs. Kepler Cheuvreux maintains its "hold" recommendation, expecting the stock to remain under pressure with limited catalysts and a continued discount.
Technical Deterioration on the Charts
Technically, the situation is significantly worsening. The RSI has plunged to 19, an extreme oversold level indicating intense selling pressure, which could signal a short-term exhaustion of the bearish movement, although this signal must be confirmed. The stock is now trading well below its 50-session moving average, established at 28.63 euros, and even further from its MM200 at 34.47 euros, clearly indicating a bearish underlying trend.
The MACD displays a deteriorated configuration, with a MACD line at -0.48 and a signal line at -0.30, while the negative histogram at -0.18 confirms the continuation of the selling momentum. The Money Flow Index (MFI) at -0.39 highlights the persistence of significant capital outflows. The breach of the support at 26.64 euros now opens the way to testing new lows, the next potential support zone being around 24 euros. Conversely, a return above 26.64 euros, now resistance, would be necessary to consider a technical stabilization, with the major resistance remaining set at 30.20 euros.
