Winners And Losers Of Q4: Nu Skin (NYSE:NUS) Vs The Rest Of The Personal Care Stocks
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the personal care industry, including Nu Skin (NYSE:NUS) 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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.4% since the latest earnings results.
Nu Skin (NYSE:NUS)
With person-to-person marketing and sales rather than selling through retail stores, Nu Skin (NYSE:NUS) is a personal care and dietary supplements company that engages in direct selling.
Nu Skin reported revenues of $445.6 million, down 8.8% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ gross margin estimates.
The stock is down 5% since reporting and currently trades at $6.09.
Read our full report on Nu Skin here, it’s free .
Best Q4: 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 $100.7 million, down 9.8% year on year, outperforming analysts’ expectations by 14.4%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Olaplex achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 7.3% since reporting. It currently trades at $1.27.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it’s free .
Weakest Q4: Coty (NYSE:COTY)
With a portfolio boasting many household brands, Coty (NYSE:COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.