As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at personal care stocks, starting with BeautyHealth (NASDAQ: SKIN).

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 12 personal care stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 4.3% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8% since the latest earnings results.

Best 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 $78.19 million, down 13.7% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

“Momentum continued to build in the second quarter, as BeautyHealth delivered another strong performance aligned with our strategic transformation goals,” said BeautyHealth CEO Marla Beck.

BeautyHealth delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 15% since reporting and currently trades at $1.36.

Is now the time to buy BeautyHealth? Access our full analysis of the earnings results here, it’s free for active Edge members.

Nature's Sunshine (NASDAQ: NATR)

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Nature's Sunshine reported revenues of $114.8 million, up 3.8% year on year, outperforming analysts’ expectations by 2.2%. The business had a very strong quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $14.30.

Is now the time to buy Nature's Sunshine? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: 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 $627.2 million, down 3.2% year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates.

Edgewell Personal Care delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.7% since the results and currently trades at $20.09.

Read our full analysis of Edgewell Personal Care’s results here.

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 $333.9 million, down 2.4% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also logged full-year revenue guidance beating analysts’ expectations but a significant miss of analysts’ gross margin estimates.

Inter Parfums scored the highest full-year guidance raise among its peers. The stock is down 17.1% since reporting and currently trades at $98.01.

Read our full, actionable report on Inter Parfums here, it’s free for active Edge members.

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 $3.41 billion, down 11.9% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is up 9.5% since reporting and currently trades at $98.60.

Read our full, actionable report on Estée Lauder here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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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