Let’s dig into the relative performance of Medifast (NYSE:MED) and its peers as we unravel the now-completed Q1 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 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.
Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results.
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 print fell short of analysts’ expectations by 0.6%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
"In today's health and wellness landscape, more people than ever are seeking guidance not just for weight loss but for learning how to lead a healthier lifestyle," said Dan Chard, CEO of Medifast.
Medifast delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 6.6% since reporting and currently trades at $13.41.
Read our full report on Medifast here, it’s free.
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, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The Honest Company achieved the fastest revenue growth among its peers. The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $4.89.
Is now the time to buy The Honest Company? 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 8.8% since the results and currently trades at $27.40.
Read our full analysis of Edgewell Personal Care’s results here.
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 beat analysts’ expectations by 2.8%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is up 17.8% since reporting and currently trades at $130.
Read our full, actionable report on Inter Parfums 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 $249.5 million, up 9.5% year on year. This result topped analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and full-year revenue guidance beating analysts’ expectations.
USANA achieved the highest full-year guidance raise among its peers. The stock is up 21.4% since reporting and currently trades at $29.42.
Read our full, actionable report on USANA here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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