Wrapping up Q4 earnings, we look at the numbers and key takeaways for the personal care stocks, including Nature's Sunshine (NASDAQ: NATR) and its peers.
While personal care products products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products.
The 13 personal care stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 6.9% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 21.2% since the latest earnings results.
Nature's Sunshine (NASDAQ: NATR)
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Nature's Sunshine reported revenues of $118.2 million, up 8.5% year on year. This print exceeded analysts’ expectations by 8.1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
“The fourth quarter was one of our strongest quarters ever, with revenue of $118 million, reflecting growth of 8.5% year-over-year and 10% on a constant currency basis,” said Terrence Moorehead, CEO of Nature’s Sunshine.
The stock is down 19.2% since reporting and currently trades at $11.82.
Read our full report on Nature's Sunshine here, it’s free.
Best Q4: Olaplex (NASDAQ: OLPX)
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Olaplex reported revenues of $100.7 million, down 9.8% year on year, outperforming analysts’ expectations by 14.4%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Olaplex achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 10.9% since reporting. It currently trades at $1.22.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Coty (NYSE: COTY)
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Coty reported revenues of $1.67 billion, down 3.3% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ organic revenue estimates.
Coty delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 32.1% since the results and currently trades at $4.60.
Read our full analysis of Coty’s results here.
Estée Lauder (NYSE: EL)
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Estée Lauder reported revenues of $4.00 billion, down 6.4% year on year. This number topped analysts’ expectations by 0.7%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 34% since reporting and currently trades at $54.62.
Read our full, actionable report on Estée Lauder here, it’s free.
Inter Parfums (NASDAQ: IPAR)
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ: IPAR) manufactures and distributes fragrances worldwide.
Inter Parfums reported revenues of $361.5 million, up 10% year on year. This print was in line with analysts’ expectations. More broadly, it was a slower quarter as it logged a miss of analysts’ adjusted operating income and EPS estimates.
The stock is down 22.7% since reporting and currently trades at $107.48.
Read our full, actionable report on Inter Parfums here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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