Beauty and Cosmetics Retailer Stocks Q3 Teardown: Sally Beauty (NYSE:SBH) Vs The Rest

Looking back on beauty and cosmetics retailer stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Sally Beauty (NYSE:SBH) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.

Luckily, beauty and cosmetics retailer stocks have performed well with share prices up 10.4% 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 $947.1 million, up 1.3% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Sally Beauty scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 1.5% since reporting and currently trades at $14.90.

Is now the time to buy Sally Beauty? Access our full analysis of the earnings results 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 $2.86 billion, up 12.9% year on year, outperforming analysts’ expectations by 5.2%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA and revenue estimates.

Ulta delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.9% since reporting. It currently trades at $589.14.

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

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 $1.59 billion, flat year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.

Bath and Body Works delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 7.4% since the results and currently trades at $19.48.

Read our full analysis of Bath and Body Works’s results here.

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 $221.7 million, up 15.2% year on year. This result lagged analysts’ expectations by 1.2%. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations.

Warby Parker delivered the fastest revenue growth among its peers. The company reported 2.66 million active customers, up 9.5% year on year. The stock is up 37.6% since reporting and currently trades at $26.21.

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

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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