What Inter Parfums, Inc. told the SEC could break it.

Inter Parfums produces and distributes fragrances almost entirely under finite-term license agreements with fashion-house brand owners. Revenue is concentrated in a handful of licensed brands — Jimmy Choo (17%), Coach (15%), Montblanc (15%) and GUESS (12%) together are roughly 59% of net sales — and each license has a fixed expiration date subject to renewal at the brand owner's discretion. Non-renewal, renegotiation on worse terms, or loss of a major license (e.g., if a brand owner takes fragrance in-house or moves to a competitor) would cause a large, abrupt revenue loss. The brand owners are captured as license edges; this risk reflects the aggregate concentration and renewal dependence. A high licensed-brand concentration/renewal exposure.

“Jimmy Choo 17 % 17 % 17 % Coach 15 % 14 % 15 % Montblanc 15 % 15 % 17 % GUESS 12 % 12 % 12 % Donna Karan/DKNY 7 % 7 % 7 % Lacoste 7 % 6 % — % Ferragamo 4 % 5 % 5 %”

Inter Parfums produces in France, the U.S. and Italy (and occasionally uses third-party manufacturers in China, Poland and Turkey) and ships globally, exposing it to trade policy. Tariffs raised its costs by $12.8 million in 2025 (~0.9% of sales, driving most of the year's gross-margin erosion), reflecting the Feb 2025 25% tariffs on Mexico/Canada and 10% on China; after a Supreme Court ruling struck down the IEEPA tariffs, a new global 15% tariff was instituted. Further tariff expansion or retaliation by China, Mexico or Canada could disrupt its established supply chain and raise COGS, forcing price increases that may dampen demand. A specific, quantified tariff/trade-policy exposure.

“Overall, tariffs resulted in $12.8 million in higher costs in 2025 or 0.9% of sales.”