Wrapping up Q1 earnings, we look at the numbers and key takeaways for the personal care stocks, including Nu Skin (NYSE:NUS) 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 13 personal care stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was 7.5% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, 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.
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%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts' expectations and a miss of analysts' gross margin estimates.
![Nu Skin Total Revenue](https://news-assets.stockstory.org/chart-images/Nu-Skin-Total-Revenue_2024-07-26-080515_gsrf.png)
The stock is down 13.4% since reporting and currently trades at $10.75.
Read our full report on Nu Skin 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](https://news-assets.stockstory.org/chart-images/The-Honest-Company-Total-Revenue_2024-07-26-080520_hbay.png)
The market seems happy with the results as the stock is up 37.1% since reporting. It currently trades at $4.03.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $212.9 million, down 10.6% year on year, falling short of analysts' expectations by 3.7%. It was a weak quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts' earnings estimates.
USANA had the weakest performance against analyst estimates in the group. As expected, the stock is down 8.7% since the results and currently trades at $41.85.
Read our full analysis of USANA's results here.
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 $321.1 million, up 71.4% year on year, surpassing analysts' expectations by 9.8%. Overall, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
e.l.f. delivered the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update among its peers. The stock is up 9.6% since reporting and currently trades at $170.55.
Read our full, actionable report on e.l.f. here, it's free.
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. More broadly, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates but revenue guidance for next quarter missing analysts' expectations.
The stock is down 47.9% since reporting and currently trades at $1.87.
Read our full, actionable report on BeautyHealth here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.