Let’s dig into the relative performance of Nature's Sunshine (NASDAQ: NATR) and its peers as we unravel the now-completed Q3 personal care earnings season.
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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was 16.1% below.
Thankfully, share prices of the companies have been resilient as they are up 6.6% on average since the latest earnings results.
Nature's Sunshine (NASDAQ: NATR)
Started on a kitchen table in Utah, Nature’s Sunshine Products (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Nature's Sunshine reported revenues of $114.6 million, up 3.1% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“The third quarter delivered the highest sales volume this year, with $114.6 million in sales, up 4% versus prior year on a local currency basis. The strong performance was driven by robust customer growth in Japan and Taiwan, continued progress in Korea, and strong execution and customer activation in Central Europe.” said Terrence Moorehead, CEO of Nature’s Sunshine.
Nature's Sunshine achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 15.9% since reporting and currently trades at $16.
Is now the time to buy Nature's Sunshine? Access our full analysis of the earnings results here, it’s free.
Best Q3: The Honest Company (NASDAQ: HNST)
Co-founded by actress Jessica Alba, The Honest Company (NASDAQ: HNST) sells diapers and wipes, skin care products, and household cleaning products.
The Honest Company reported revenues of $99.24 million, up 15.2% year on year, outperforming analysts’ expectations by 6.9%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The Honest Company pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 35.6% since reporting. It currently trades at $6.51.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Nu Skin (NYSE: NUS)
With person-to-person marketing and sales rather than selling through retail stores, Nu Skin (NYSE: NUS) is a personal care and dietary supplements company that engages in direct selling.
Nu Skin reported revenues of $430.1 million, down 13.8% year on year, falling short of analysts’ expectations by 2.5%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 8.5% since the results and currently trades at $6.99.
Read our full analysis of Nu Skin’s results here.
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 $517.6 million, down 3.1% year on year. This number came in 3.3% below analysts' expectations. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ organic revenue and EBITDA estimates.
The stock is down 3.8% since reporting and currently trades at $34.97.
Read our full, actionable report on Edgewell Personal Care 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 $424.6 million, up 15.4% year on year. This print surpassed analysts’ expectations by 2.7%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
The stock is up 2% since reporting and currently trades at $130.72.
Read our full, actionable report on Inter Parfums here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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