Interparfums’ stock plunged by 9 percent on Wednesday after the fragrance maker trimmed its 2025 earnings outlook for a second time this year.

Interparfums, with European and US operations based in Paris and New York respectively, predicts flat sales growth of less than one percent, or $1.47 billion in net sales, for the 2026 fiscal year. The company had previously estimated sales of around $1.51 billion. Diluted EPS is expected to decline by 5 percent, falling from $5.12 per share to $4.85.

For the muted outlook, Interparfums chairman and chief executive officer Jean Madar cited the impact of one-time tax gains, tariffs and ongoing investments into its newest acquired brands Off-White and Longchamp. “The investments we are making in 2026 will set our future brands up for success and serve our core brands with a strong pipeline of blockbuster launches in 2027,” said Madar in a statement.

The company, which develops fragrances for luxury names such as Coach, Roberto Cavalli and Jimmy Choo, had reported a sales dip of 2 percent in its second quarter earnings earlier this year.

Madar added that the brand expects macroeconomic headwinds to subside by the end of the 2026 fiscal year, sharing that the brand is optimistic about accelerating “profitable growth” into 2027.

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Interparfums Sales Decline Due to Pressure in the US

The fragrance manufacturer and distributor cited a perfect storm of macroeconomic headwinds, tariffs and the discontinuation of its Dunhill license for its mixed results.