As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the personal care industry, including The Honest Company (NASDAQ:HNST) 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 12 personal care stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 4.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.7% since the latest earnings results.
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 $93.46 million, flat year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“For our second quarter 2025, we were able to drive profitability improvement, gross margin expansion and revenue growth, resulting in positive net income for the second consecutive quarter,” said Chief Executive Officer, Carla Vernón.
Unsurprisingly, the stock is down 18% since reporting and currently trades at $3.72.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: USANA (NYSE:USNA)
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products.
USANA reported revenues of $235.8 million, up 10.8% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA and EPS estimates.
USANA scored the fastest revenue growth and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 35% since reporting. It currently trades at $20.51.
Is now the time to buy USANA? 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 19.4% since the results and currently trades at $20.16.
Read our full analysis of Edgewell Personal Care’s results here.
e.l.f. Beauty (NYSE:ELF)
Short for "eyes, lips, face", e.l.f. Beauty (NYSE:ELF) is a developer of high-quality beauty products at accessible price points.
e.l.f. Beauty reported revenues of $353.7 million, up 9% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is up 21.5% since reporting and currently trades at $134.13.
Read our full, actionable report on e.l.f. Beauty here, it’s free for active Edge members.
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 met 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.
The stock is down 18.8% since reporting and currently trades at $96.
Read our full, actionable report on Inter Parfums here, it’s free for active Edge members.
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.
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