Unpacking Q2 Earnings: Nature's Sunshine (NASDAQ:NATR) In The Context Of Other Personal Care Stocks

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the personal care stocks, including Nature's Sunshine (NASDAQ:NATR) 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 personal care stocks have had a rough stretch. On average, share prices are down 9.4% since the latest earnings results.

Nature's Sunshine (NASDAQ:NATR)

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 print fell short of analysts’ expectations by 1.6%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.

“In the second quarter of 2024, we continued to make progress on our global growth strategies, addressing near-term challenges, while driving change and creating new opportunities for the future,” said Terrence Moorehead, Chief Executive Officer of Nature’s Sunshine.

Unsurprisingly, the stock is down 10.3% since reporting and currently trades at $13.09.

Read our full report on Nature's Sunshine 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%. The business had an exceptional quarter with an impressive beat of analysts’ earnings and gross margin estimates.

The Honest Company scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 27.9% since reporting. It currently trades at $4.15.

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 disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations.

BeautyHealth delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 7.8% since the results and currently trades at $1.39.

Read our full analysis of BeautyHealth’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 $324.5 million, up 50% year on year. This number topped analysts’ expectations by 6.6%. It was a strong quarter as it also produced an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ operating margin estimates.

e.l.f. scored the fastest revenue growth among its peers. The stock is down 41.4% since reporting and currently trades at $110.12.

Read our full, actionable report on e.l.f. here, it’s free.

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. This result missed analysts’ expectations by 3.6%. It was a slower quarter as it also logged a miss of analysts’ organic revenue growth estimates and a miss of analysts’ gross margin estimates.

The stock is down 41.2% since reporting and currently trades at $7.21.

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

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