Personal Care Stocks Q2 Results: Benchmarking Nu Skin (NYSE:NUS)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Nu Skin (NYSE:NUS) and the best and worst performers in the personal care industry.

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 Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 14.6% below.

After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.

Amidst this news, personal care stocks have had a rough stretch. On average, share prices are down 11.3% since the latest earnings results.

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 $439.1 million, down 12.2% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a mixed quarter for the company with underwhelming earnings guidance for the next quarter.

Unsurprisingly, the stock is down 39.2% since reporting and currently trades at $6.30.

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

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 $93.05 million, up 10.1% year on year, outperforming analysts’ expectations by 6.8%. The business had an exceptional quarter with an impressive beat of analysts’ earnings 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 22.7% since reporting. It currently trades at $3.98.

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

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 $90.59 million, down 22.9% year on year, falling short of analysts’ expectations by 8.1%. It was a softer quarter as it posted a miss of analysts’ operating margin estimates.

BeautyHealth delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19.4% since the results and currently trades at $1.54.

Read our full analysis of BeautyHealth’s results here.

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 $110.6 million, down 5.1% year on year. This result missed analysts’ expectations by 1.6%. Overall, it was a slower quarter as it also produced a miss of analysts’ earnings estimates.

The stock is down 11.5% since reporting and currently trades at $12.92.

Read our full, actionable report on Nature's Sunshine here, it’s free.

With a portfolio boasting many household brands, Coty (NYSE:COTY) is a beauty products powerhouse with offerings in cosmetics, fragrances, and skincare.

Coty reported revenues of $1.36 billion, flat year on year. This result was in line with analysts’ expectations. Zooming out, it was a slower quarter as it produced a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.

The stock is down 14% since reporting and currently trades at $8.19.

Read our full, actionable report on Coty here, it’s free.

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