Welcome to Interparfum 2026 conference call and webcast. At this time, all participants are on a listen-only mode. Question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. I would now like to turn the conference over to your host, Mr. Devin Sullivan. Thank you. You may begin.

Thank you, Rob. And good morning, everyone. Joining us on the call today will be Chairman and Chief Executive Officer Jean Madar and Chief Financial Officer Michel Atwood. As a reminder, 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. 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 is now my pleasure to turn the call over to Jean Madar. Jean, please go ahead.

Thank you Devin and good morning everyone and thank you for joining us on today's call. We are very pleased with our performance at the midpoint of the year, which reflects the appeal of our global brand portfolio and the strength of our underlying business, and also the disciplined execution, and also the continued dedication of our team. Despite the challenges that persist in our business and industry, these results gives me confidence in our ability to deliver on our full-year objectives and continue on the path towards creating long-term value for our shareholders. So we delivered a 2% sales growth in both the second quarter and first half of 2026, supported by strong performance from several of our leading firms, and a strong rebound in our United States-based operation of an admittedly weak corporation. Excluding the world-related headwinds, organic sales advanced 4% in the quarter and 1% year-to-date. And we maintained a robust financial position while continuing to invest in product initiatives that position us well for the balance of the year and beyond. Consolidated sales growth in the first half of the year reflects strong brand execution and service performance in select regions, partially offset by macro and regional headwinds. North America, our largest market, was up 5%, propelled by a health category, a steady cadence of new extensions, established from coach, and marketing investments that are clearly paying off. Asia-Pacific was highlighted, up 14%, As initiatives supporting Côtes and Mont Blanc took hold, guests extended its footprint in Australia and New Zealand, and our new Korean affiliate got off to an excellent start after several years of uneven results in the region. We are also encouraged that consumers across Asia and the Pacific are increasingly embracing the fragrance category, and we are moving quickly to capture that opportunity. In India, for example, we recently teamed up with a new distributor to bring Coop, Blanc and Jimmy Choo, and all of our other brands, back to one of the world's fastest growing beauty market. Also, South America rose by 15% behind the continued success of Coach for Women and Men and Montblanc Legend Line. Partially offsetting growth from this geography, a few regions declined in the first half. Western Europe slipped 3% on softer consumer demand. Eastern Europe was down 7% amid operational difficulties in certain markets, which weighed most heavily on long-term costs. And of course, Middle East and Africa fell 24% as the war in the region continued to weigh on our results. Even with these pressures, our diversified footprint allowed us to grow overall, which speaks to the resilience of our model. Looking at our brands, momentum in the first half was broad and several of our largest properties finished the second quarter with real strength. Coach grew 10% in the first half, driven by strong performance in the U.S., its primary market, driven by continued demand across most existing lines, and by the launch of new extensions in the Coach women and Coach men franchises earlier in 2026. Montblanc advanced 6% in the first half of 2026 due to favorable exchange rates, and the ongoing success of the Montblanc Explorer Extreme line and the strength of a legend franchise. With sales holding firm in the second quarter and the first franchise arriving in 2027, we see plenty of runway ahead for this brand. Next, Jimmy Choo was up 8% for the half year, capped by an impressive 23% jump in the second quarter. The brand's fragrances are winning over more and more customers, particularly in the U.S., thanks to the enduring popularity of I Want Choo and the very successful debut for Jimmy Choo Man Parfum.

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The largest US-based brand rose 11% in the first half, including 10% in the second quarter. The iconic franchise keeps delivering, now altered by iconic blue for men, and the newest Amore extension, Amore Napoli, which was launched in the second quarter. The brand's reach keeps widening as well. Today, for instance, guests stand among the top 15 fragrance brands in Australia. Let's talk about Ferragamo. Ferragamo sales jumped by 41% in the second quarter, bringing first-class growth to 17%. Growth was geographically broad, with the Fiorina and Ferragamo lines performing very well, elevated by their latest launches introduced in late 2025. We rolled out a commercial innovation program across the brand's franchise in May, which further enhanced the brand's growth, including our newest extension Fiamma Assoluta, which has seen very positive feedback so far. During the second quarter, Chinese singer and actor Carrie Wang joined the Ferragamo family as the brand's global fragrance ambassador. As mentioned earlier, Asia Pacific is increasingly embracing fragrance. We are hopeful that Carrie's association with Ferragamo will further elevate the brand in this burgeoning market. Donna Cara-Diquiero climbed 12% in the first half, punctuated by a 28% increase in the second quarter, with healthy demand across categories and franchises and e-commerce becoming an increasing detergent gene for the brand's growth. The Kashmir Miz deal remains a fixture on TikTok, Shope and Amazon. Roberto Perali grew 8% in the first half, fueled by this year's introduction across several franchises, among them the unisex scent Marvellous Cypress, and several other fragrances launched earlier this year. Serpentine continues to be a massive success for the brand globally. The war in the Middle East is certainly impacting this brand, and Cavalry is our largest brand in the region. Notwithstanding the world's impact, our conviction and excitement the trajectory of a brand remains strong. A few brands faced Deeper conversions. Lacrosse came in 16% below last year, when a string of heat launches lifted first-half sales by 44%, and conditions in Eastern Europe added pressure. We introduced L12-12 Bleu for men during the second quarter, and with major initiatives lined up for 2027 and 2028, we believe the brand's best performance lies ahead. Recognition keeps coming for our fragrance as well. The La Blanca from Oscar de la Renta took home the Best Eau de Parfum at the Marie Claire Fragrance Awards 2026 and Sagamo Signorina Romantica was honored as the Best Sensual Gourmand Fragrance at the Who, What, Where Fragrance Awards 2026. Consumers like these celebrate the artistry of our team and partners and add to the desirability of our portfolio. Even as consumers remain increasingly selective about how they allocate their products, the United States fragrance was once again the fastest growing beauty category in the first half. owing to its status as an affordable indulgence and daily form of self-expression. The market has normalized after several years of exceptional growth, but the opportunity remains attractive. For us, the opportunity is very clear. We share with brands that have personality, quality, and global reach. Across our portfolio, we have many ways to speak to consumers and that diversity is one of our greatest strengths. Beyond success and innovation from our core brands so far this year, we also made significant strides in developing and expanding our newest portfolio brands. is rebuilding momentum in high-end fragrance, with existing consulates having resumed distribution and reopening of Paris boutiques. We are also preparing the launch of new fragrances in 2027. Lastly, newly created Holy Oran Solferino, extended to 100 total point of sales at the end of first half this year and we plan to launch an 11th fragrance to the initial collection in the second half of this year. And we are also preparing for the first launches of new fragrances for Longchamp and Off-White in 2027. Longchamp has the potential to become our next 100 million brand, and Off-White represents another step for us into the high-end category. Here, the top of that is the extraordinary rise of digital commerce, which has been a growth driver for us in the second quarter, highlighting Amazon and TikTok Shop. Amazon now sells more beauty and many more. We will stay ahead of the curve to identify Evolving behaviors continuously adapt how, where, and when we engage. So we meet consumers not just where they are, but where they are heading. Consumers are also making personal layering scents, assembling fragrance wardrobes and turning to AI-powered recommendations to guide discovery. However, they choose to find us on social media, on the major marketplaces or in stores. We are meeting them with storytelling that carries across every channel and delivers an immersive, consistent brand experience. Ultimately, this business is about inspiring desire, offering consumers an entry point in the world of an iconic fashion house or celebrity. And we work every day to keep the desire burning across each of our brands. Travel retail remained a steady contributor, once again accounting for roughly 7% of total net sales, in line with prior periods. New York is where the tunnel is strongest today, with conditions softer elsewhere, including, of course, the Middle East, and we see steady growth ahead of this business. I will be touching on tariffs given the newest round implemented under Section 301. As a reminder, our manufacturing is based primarily in Europe, and the rates we face under this latest wave are largely in line with what we were operating under, so we don't expect to see meaningful changes to our cost structure moving forward. We are not standing still. We are increasingly working to position our distributors closer to the point of sale, which shortens supply lines and helps mitigate tariff impacts while keeping our brands close to the consumer. We are also working on cost-saving initiatives to help

Okay, please remain on the line. Okay, our speaker is back with us. You can continue. I'm so sorry.

I don't know if you lost me, but anyway, I'm at the end of my comments. So I think that while the environment remains anything but demonstrating that we can do more than manage food turbulence, we can grow through it. The fragrance category remains resilient. Our brands are performing and on track to believe on our goals this year. We remain cautiously optimistic about the balance of 26, mindful of all