Unpacking Q2 Earnings: Inter Parfums (NASDAQ:IPAR) In The Context Of Other Personal Care Stocks
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the personal care industry, including Inter Parfums (NASDAQ:IPAR) 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 slower Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 14.6% below.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some personal care stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.
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 $342.2 million, up 10.7% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ gross margin estimates but full-year revenue guidance missing analysts’ expectations.
Unsurprisingly, the stock is down 4.4% since reporting and currently trades at $124.57.
Is now the time to buy Inter Parfums? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $93.05 million, up 10.1% year on year, outperforming analysts’ expectations by 6.8%. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a solid 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 28.5% since reporting. It currently trades at $4.17.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $90.6 million, down 22.9% year on year, falling short of analysts’ expectations by 8.1%. It was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations.
BeautyHealth posted the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 31.8% since the results and currently trades at $1.70.
Read our full analysis of BeautyHealth’s results here.
Herbalife (NYSE:HLF)
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Herbalife reported revenues of $1.28 billion, down 2.5% year on year, falling short of analysts’ expectations by 3.6%. Overall, it was a weaker quarter for the company with a miss of analysts’ organic revenue growth estimates.
The stock is down 30.9% since reporting and currently trades at $8.48.
Read our full, actionable report on Herbalife 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 $647.8 million, flat year on year, in line with analysts’ expectations. Taking a step back, it was a mixed quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ organic revenue growth estimates.
The stock is up 6.3% since reporting and currently trades at $40.
Read our full, actionable report on Edgewell Personal Care here, it’s free.
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