Let’s dig into the relative performance of The Honest Company (NASDAQ: HNST) and its peers as we unravel the now-completed Q4 personal care earnings season.
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 7.9% 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 $99.84 million, up 10.6% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“Our Q4 and full year 2024 financial results demonstrate that our strategy, which focuses on the disciplined execution of our Transformation Pillars of Brand Maximization, Margin Enhancement and Operating Discipline, is working. In 2024, we achieved record results ahead of our outlook with revenue growth of 10% and first full year positive adjusted EBITDA as a public company. We also achieved gross margin of 38%, an expansion of 900 basis points compared to last year,” said Chief Executive Officer, Carla Vernón.
The stock is down 10.3% since reporting and currently trades at $5.10.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results 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 scored the biggest analyst estimates beat 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 5.8% since reporting. It currently trades at $1.29.
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.
Coty reported revenues of $1.67 billion, down 3.3% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ organic revenue estimates.
Coty delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 18% since the results and currently trades at $5.55.
Read our full analysis of Coty’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 $119 million, down 37.7% year on year. This number beat analysts’ expectations by 4.2%. Taking a step back, it was a slower quarter as it produced revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Medifast had the slowest revenue growth among its peers. The stock is down 14.9% since reporting and currently trades at $13.73.
Read our full, actionable report on Medifast here, it’s free.
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 $213.6 million, down 3.4% year on year. This print topped analysts’ expectations by 2.3%. It was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is down 17.8% since reporting and currently trades at $26.26.
Read our full, actionable report on USANA here, it’s free.
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