Reflecting On Beauty and Cosmetics Retailer Stocks’ Q1 Earnings: Sally Beauty (NYSE:SBH)

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sally Beauty (NYSE:SBH) and the rest of the beauty and cosmetics retailer stocks fared in Q1.

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 mixed Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.

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 $883.1 million, down 2.8% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ gross margin estimates.

Sally Beauty delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 6.1% since reporting and currently trades at $8.67.

Is now the time to buy Sally Beauty? Access our full analysis of the earnings results here, it’s free.

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 $2.85 billion, up 4.5% year on year, outperforming analysts’ expectations by 1.9%. The business had a strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.

Ulta scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $467.38.

Is now the time to buy Ulta? Access our full analysis of the earnings results here, it’s free.