Wrapping up Q2 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 12 personal care stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 4.5% below.

While some personal care stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% 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 $114.8 million, up 3.8% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

“We delivered another strong quarter, with net sales of $115 million and adjusted EBITDA of $11 million, up 4% and 8%, respectively, year-over-year,” said Terrence Moorehead, CEO of Nature’s Sunshine.

Interestingly, the stock is up 7.9% since reporting and currently trades at $15.

Is now the time to buy Nature's Sunshine? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: USANA (NYSE: USNA)

Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE: USNA) manufactures and sells nutritional, personal care, and skincare products.

USANA reported revenues of $235.8 million, up 10.8% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA and EPS estimates.

USANA achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.9% since reporting. It currently trades at $26.51.

Is now the time to buy USANA? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Edgewell Personal Care (NYSE: EPC)

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.

Edgewell Personal Care reported revenues of $627.2 million, down 3.2% year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates.

Edgewell Personal Care delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19% since the results and currently trades at $20.27.

Read our full analysis of Edgewell Personal Care’s results here.

Herbalife (NYSE: HLF)

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Herbalife reported revenues of $1.26 billion, down 1.7% year on year. This number lagged analysts' expectations by 1%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is down 1.2% since reporting and currently trades at $9.15.

Read our full, actionable report on Herbalife here, it’s free for active Edge members.

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 $3.41 billion, down 11.9% year on year. This result met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is up 6.7% since reporting and currently trades at $96.01.

Read our full, actionable report on Estée Lauder here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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