Let's dig into the relative performance of e.l.f. (NYSE:ELF) and its peers as we unravel the now-completed Q4 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 Q4; on average, revenues beat analyst consensus estimates by 4% while next quarter's revenue guidance was 13.4% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but personal care stocks held their ground better than others, with share prices down 1.7% on average since the previous earnings results.
e.l.f. (NYSE:ELF)
e.l.f. Beauty (NYSE:ELF), which stands for ‘eyes, lips, face’, offers high-quality beauty products at accessible price points.
e.l.f. reported revenues of $270.9 million, up 84.9% year on year, topping analyst expectations by 13.4%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.
e.l.f. achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The stock is up 10.6% since the results and currently trades at $191.69.
Is now the time to buy e.l.f.? Access our full analysis of the earnings results here, it's free.
Best Q4: 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 $90.26 million, up 10.3% year on year, outperforming analyst expectations by 7.3%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue, adjusted EBITDA, and EPS expectations.
The stock is up 29% since the results and currently trades at $4.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $191 million, down 43.4% year on year, exceeding analyst expectations by 3.7%. 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 24.4% since the results and currently trades at $37.
Read our full analysis of Medifast's results here.
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 $328.7 million, up 5.8% year on year, surpassing analyst expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' earnings estimates. Sales outlook for the upcoming year was also weaker than expected.
The stock is down 12.2% since the results and currently trades at $135.11.
Read our full, actionable report on Inter Parfums here, it's free.
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 $221.1 million, down 3% year on year, surpassing analyst expectations by 4.1%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
The stock is down 2.4% since the results and currently trades at $46.47.
Read our full, actionable report on USANA here, it's free.
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