Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at 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 11 personal care stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 5.5% below.
Thankfully, share prices of the companies have been resilient as they are up 6.7% on average 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 $338.8 million, up 4.6% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.
The stock is up 18.7% since reporting and currently trades at $131.
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 $97.25 million, up 12.8% year on year, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The Honest Company pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $4.97.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $580.7 million, down 3.1% year on year, falling short of analysts’ expectations by 1.8%. It was a slower quarter as it posted a miss of analysts’ organic revenue estimates and full-year EBITDA guidance missing analysts’ expectations.
Edgewell Personal Care delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.8% since the results and currently trades at $27.38.
Read our full analysis of Edgewell Personal Care’s results here.
Olaplex (NASDAQ: OLPX)
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Olaplex reported revenues of $96.98 million, down 1.9% year on year. This result beat analysts’ expectations by 3.9%. It was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is down 9% since reporting and currently trades at $1.20.
Read our full, actionable report on Olaplex here, it’s free.
Estée Lauder (NYSE: EL)
Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.
Estée Lauder reported revenues of $3.55 billion, down 9.9% year on year. This print topped analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 6.4% since reporting and currently trades at $63.70.
Read our full, actionable report on Estée Lauder here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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