Looking back on personal care stocks’ Q1 earnings, we examine this quarter’s best and worst performers, 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 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.
Luckily, personal care stocks have performed well with share prices up 10.6% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 5.7%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“Our first quarter results demonstrate our solid start to 2025, with double-digit revenue growth, gross margin expansion, and positive net income in the period reflecting the continued strength of our strategy and disciplined execution of our team,” said Chief Executive Officer, Carla Vernón.
The Honest Company scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 4.2% since reporting and currently trades at $4.99.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results 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, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 12.2% since reporting. It currently trades at $67.20.
Is now the time to buy Estée Lauder? 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 6.6% since the results and currently trades at $28.06.
Read our full analysis of Edgewell Personal Care’s results here.
Medifast (NYSE: MED)
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE: MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Medifast reported revenues of $115.7 million, down 33.8% year on year. This result missed analysts’ expectations by 0.6%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Medifast had the slowest revenue growth among its peers. The stock is up 10.2% since reporting and currently trades at $13.86.
Read our full, actionable report on Medifast here, it’s free.
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 surpassed analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.
The stock is up 20.8% since reporting and currently trades at $133.34.
Read our full, actionable report on Inter Parfums here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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