What caused IPAR's Q2 earnings to exceed forecasts in 2024?

Inter Parfums (IPAR) reported a net income of $46.6 million and total revenue of $342.23 million for Q2 2024, with a diluted EPS of $1.14. Despite a slight decrease in the diluted EPS growth rate to 0.05% compared to the previous year, IPAR's Q2 earnings exceeded forecasts, as indicated by the strong buy consensus rating with an average analyst price target of $167.57. The key factors contributing to IPAR's strong performance are as follows:

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|IPAR|IPAR.O|Interparfums|2023 Q3|24.059515544965006|31.201018319772377|27.692307692307683|185|
|IPAR|IPAR.O|Interparfums|2023 Q4|-51.385196999232086|5.775963035895852||185|
|IPAR|IPAR.O|Interparfums|2024 Q1|-24.827946070965197|3.9265630062587618|-24.4047619047619|185|
|IPAR|IPAR.O|Interparfums|2024 Q2|9.595935838938804|10.666334674237818|4.587155963302736|185|

1. **Strong Brand Performances and New Product Launches**: The relaunch of popular brands like Lacoste and Roberto Cavalli significantly contributed to the revenue growth. Inter Parfums' strategic investments in marketing and advertising, such as the $48.3 million spent in Q1 2024, paid off, enhancing brand visibility and driving sales.
2. **Market Conditions and Sales Growth**: The global fragrance market is described as "still buoyant," which benefited Inter Parfums' sales growth close to 16% in Q2, reaching 209.9 million euros. This overall positive market environment likely contributed to the company's strong revenue performance.

In conclusion, Inter Parfums' Q2 2024 earnings exceeded forecasts due to strong brand performances, new product launches, and favorable market conditions, despite increased advertising and promotional spending.