Beauty and Cosmetics Retailer Stocks Q2 In Review: Bath and Body Works (NYSE:BBWI) Vs Peers

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Bath and Body Works (NYSE:BBWI) and its peers.

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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

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 $1.55 billion, up 1.5% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EBITDA estimates.

Bath and Body Works delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 17.1% since reporting and currently trades at $26.14.

Read our full report on Bath and Body Works here, it’s free for active Edge members.

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 $2.79 billion, up 9.3% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Ulta delivered 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 2.3% since reporting. It currently trades at $518.30.

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

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 $214.5 million, up 13.9% year on year, exceeding analysts’ expectations by 0.7%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Warby Parker delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 12.7% since the results and currently trades at $21.21.

Read our full analysis of Warby Parker’s results here.

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 $933.3 million, flat year on year. This result was in line with analysts’ expectations. It was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Sally Beauty had the slowest revenue growth among its peers. The stock is up 54.7% since reporting and currently trades at $15.42.

Read our full, actionable report on Sally Beauty here, it’s free for active Edge members.

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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