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 Q3. Today, we are looking at beauty and cosmetics retailer stocks, starting with Bath and Body Works (NYSE:BBWI).
Beauty and cosmetics retailers understand that beauty is in the eye of the beholder, but a little lipstick, nail polish, and glowing skin also help the cause. These stores—which mostly cater to consumers but can also garner the attention of salon pros—aim to be a one-stop personal care and beauty products shop with many brands across many categories. E-commerce is changing how consumers buy cosmetics, so these retailers are constantly evolving to meet the customer where and how they want to shop.
The 4 beauty and cosmetics retailer stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 0.5% below.
Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.
Bath and Body Works (NYSE:BBWI)
Spun off from L Brands in 2020, Bath & Body Works (NYSE:BBWI) is a personal care and home fragrance retailer where consumers can find specialty shower gels, scented candles for the home, and lotions.
Bath and Body Works reported revenues of $1.61 billion, up 3.1% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with EPS guidance for next quarter topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.
Gina Boswell, CEO of Bath & Body Works, commented, “Our strong results exceeded the high end of our net sales and earnings per diluted share guidance. As a result, we are raising our full-year guidance to fully reflect this outperformance.”
Bath and Body Works scored the biggest analyst estimates beat of the whole group. The stock is up 15.5% since reporting and currently trades at $35.48.
Is now the time to buy Bath and Body Works? Access our full analysis of the earnings results here, it’s free.
Best Q3: Ulta (NASDAQ:ULTA)
Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.
Ulta reported revenues of $2.53 billion, up 1.7% year on year, outperforming analysts’ expectations by 1.2%. The business had a strong quarter with a solid beat of analysts’ EBITDA and EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.2% since reporting. It currently trades at $380.
Is now the time to buy Ulta? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: Sally Beauty (NYSE:SBH)
Catering to both everyday consumers as well as salon professionals, Sally Beauty (NYSE:SBH) is a retailer that sells salon-quality beauty products such as makeup and haircare products.
Sally Beauty reported revenues of $935 million, up 1.5% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a decent beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.
Sally Beauty delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.4% since the results and currently trades at $9.59.
Read our full analysis of Sally Beauty’s results here.
Warby Parker (NYSE:WRBY)
Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Warby Parker reported revenues of $192.4 million, up 13.3% year on year. This print beat analysts’ expectations by 1.3%. It was a strong quarter as it also logged a decent beat of analysts’ EPS and EBITDA estimates.
Warby Parker pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 40.2% since reporting and currently trades at $26.58.
Read our full, actionable report on Warby Parker here, it’s free.
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