Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Warby Parker (NYSE:WRBY) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 0.5% below.
Luckily, beauty and cosmetics retailer stocks have performed well with share prices up 13% on average since the latest earnings results.
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 exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EPS and EBITDA estimates.
“We’re particularly encouraged by the momentum we’re seeing in early Q4. As we close out the year, we’re focused on continuing to capture market share, bring new customers to the brand, and deliver on our commitment to accelerate growth and improve profitability year over year,” said Co-Founder and Co-CEO Dave Gilboa.
Warby Parker pulled off the fastest revenue growth and highest full-year guidance raise of the whole group. The stock is up 44.7% since reporting and currently trades at $27.43.
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.
The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $398.50.
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.
Sally Beauty delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 16.8% since the results and currently trades at $10.42.
Read our full analysis of Sally Beauty’s results here.
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 topped analysts’ expectations by 2.1%. It was a strong quarter as it also put up EPS guidance for next quarter topping analysts’ expectations and a decent beat of analysts’ EBITDA estimates.
Bath and Body Works pulled off the biggest analyst estimates beat among its peers. The stock is up 22.4% since reporting and currently trades at $37.59.
Read our full, actionable report on Bath and Body Works here, it’s free.
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