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Unpacking Q1 Earnings: BeautyHealth (NASDAQ:SKIN) In The Context Of Other Personal Care Stocks


Radek Strnad /
2024/06/06 5:41 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how BeautyHealth (NASDAQ:SKIN) and the rest of the personal care stocks fared in Q1.

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 Q1; on average, revenues beat analyst consensus estimates by 1.1%. while next quarter's revenue guidance was 7.5% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the personal care stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.9% on average since the previous earnings results.

BeautyHealth (NASDAQ:SKIN)

Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.

BeautyHealth reported revenues of $81.4 million, down 5.7% year on year, in line with analysts' expectations. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but revenue guidance for next quarter missing analysts' expectations.

"Our first quarter results demonstrate the progress we are making on our near-term strategic priorities, including sales excellence, operational excellence, and financial discipline,” said BeautyHealth Chief Executive Officer Marla Beck.

BeautyHealth Total Revenue

The stock is down 43.7% since the results and currently trades at $2.02.

Is now the time to buy BeautyHealth? Access our full analysis of the earnings results here, it's free.

Best Q1: 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 $86.22 million, up 3.4% year on year, outperforming analysts' expectations by 3.5%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

The Honest Company Total Revenue

The stock is down 8.5% since the results and currently trades at $2.69.

Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it's free.

Weakest Q1: 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 $174.7 million, down 49.9% year on year, in line with analysts' expectations. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' operating margin estimates.

Medifast had the slowest revenue growth in the group. The stock is down 38% since the results and currently trades at $22.

Read our full analysis of Medifast's results here.

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 $417.3 million, down 13.3% year on year, falling short of analysts' expectations by 3.5%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Nu Skin had the weakest performance against analyst estimates among its peers. The stock is up 8.5% since the results and currently trades at $13.47.

Read our full, actionable report on Nu Skin here, it's free.

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 $3.94 billion, up 5% year on year, in line with analysts' expectations. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is down 16.2% since the results and currently trades at $122.98.

Read our full, actionable report on Estée Lauder here, it's free.

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