Let’s dig into the relative performance of Nu Skin (NYSE:NUS) 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 10.6% below.
Luckily, personal care stocks have performed well with share prices up 14.7% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 2.5%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
“During the third quarter, we achieved results within our previous guidance range with challenges in the core business partially offset by continued strong growth in our Rhyz segment,” said Ryan Napierski, Nu Skin president and CEO.
Interestingly, the stock is up 18.5% since reporting and currently trades at $7.63.
Read our full report on Nu Skin 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 an impressive beat of analysts’ EPS and EBITDA estimates.
The Honest Company delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 73.5% since reporting. It currently trades at $8.33.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 3.3%. It was a softer quarter as it posted a significant miss of analysts’ organic revenue and EBITDA estimates.
Interestingly, the stock is up 4.9% since the results and currently trades at $38.13.
Read our full analysis of Edgewell Personal Care’s results here.
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 topped analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Nature's Sunshine delivered the highest full-year guidance raise among its peers. The stock is up 23.1% since reporting and currently trades at $16.99.
Read our full, actionable report on Nature's Sunshine here, it’s free.
Medifast (NYSE:MED)
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Medifast reported revenues of $140.2 million, down 40.6% year on year. This number surpassed analysts’ expectations by 1.5%. It was a strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations.
Medifast had the slowest revenue growth among its peers. The stock is up 5.6% since reporting and currently trades at $19.84.
Read our full, actionable report on Medifast 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 Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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