Henkel Moves for Shampoo Maker Olaplex, Bloomberg Says, Citing Sources

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how personal care stocks fared in Q3, starting with Nature's Sunshine .

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 12 personal care stocks we track reported a strong Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.2% above.

In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results.

Best Q3: Nature's Sunshine

Started on a kitchen table in Utah, Nature’s Sunshine manufactures and sells nutritional and personal care products.

Nature's Sunshine reported revenues of $128.3 million, up 12% year on year. This print exceeded analysts’ expectations by 6.7%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

“The momentum in our business continued to accelerate in the third quarter, with record net sales of $128 million and adjusted EBITDA of $15 million, representing year-over-year growth of 12% and 42%, respectively,” said Shane Jones, CFO of Nature’s Sunshine.

Nature's Sunshine scored the biggest analyst estimates beat of the whole group. The stock is up 57.5% since reporting and currently trades at $21.58.

BeautyHealth

Operating in the emerging beauty health category, the appropriately named BeautyHealth is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.

BeautyHealth reported revenues of $70.66 million, down 10.3% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

BeautyHealth pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 7.8% since reporting. It currently trades at $1.39.

Weakest Q3: Edgewell Personal Care

Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care sells personal care products in the skin and sun care, shave, and feminine care categories.

Edgewell Personal Care reported revenues of $537.2 million, up 3.8% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 9.8% since the results and currently trades at $17.05.

Read our full analysis of Edgewell Personal Care’s results here.

Inter Parfums

With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums manufactures and distributes fragrances worldwide.

Inter Parfums reported revenues of $429.6 million, up 1.2% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is down 5.8% since reporting and currently trades at $85.99.

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

Olaplex

Rising to fame on TikTok because of its “bond building" hair products, Olaplex offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.

Olaplex reported revenues of $114.6 million, down 3.8% year on year. This print topped analysts’ expectations by 4.2%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 27.4% since reporting and currently trades at $1.35.

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

Check out the companies making headlines yesterday:

Broadcom : Fabless chip and software maker Broadcom fell by 5.4% on Wednesday after it continued a multi-day slide as management warned that its fast-growing artificial intelligence (AI) business would negatively impact gross profit margins. See our full article here.

Olaplex : Hair care company Olaplex fell by 8.7% on Wednesday after its CEO, Amanda Baldwin, sold 398,560 shares of company stock, a transaction valued at $474,286. See our full article here.

Paycom : HR software provider Paycom rose by 3% on Wednesday after BTIG initiated coverage on the software company with a "Buy" rating and set a price target of $195. See our full article here.

Tilray : Cannabis company Tilray Brands fell by 5.2% on Wednesday after the stock gave back some of its recent gains, which were fueled by reports that the U.S. administration was considering reclassifying marijuana. See our full article here.

Workiva : Cloud reporting platform Workiva rose by 2.6% on Wednesday after investment firm BTIG initiated coverage on the company with a "Buy" rating and a $105 price target. See our full article here.

What Happened?

Shares of hair care company Olaplex fell 8.7% in the afternoon session after its CEO, Amanda Baldwin, sold 398,560 shares of company stock, a transaction valued at $474,286. 

Large stock sales by high-level executives can raise concerns among investors about a company's future outlook and are often viewed as a sign of weakening confidence. The decline marked a sharp reversal from the previous day's trading session, when the stock had climbed. That earlier gain was connected to positive sentiment spreading through the beauty sector after an analyst report forecasted a stronger year for the industry. However, the news of the insider sale appeared to outweigh the broader market optimism.

What Is The Market Telling Us

Olaplex’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 8.4% on the news that positive sentiment spread through the beauty sector following a bullish analyst note on the industry's outlook. 

The optimism stemmed from a Bank of America report that forecasted a stronger year for the beauty market in 2026. The bank expected industry revenue growth to accelerate to 4.9%, which was double the growth rate of 2025. This upbeat view was based on an anticipated recovery in the Chinese market and continued supportive trends in the U.S. While the report named a competitor as a top pick, its positive projection for the entire sector likely boosted investor confidence in other beauty-related companies like Olaplex.

Olaplex is down 22.8% since the beginning of the year, and at $1.31 per share, it is trading 35.1% below its 52-week high of $2.01 from December 2024. Investors who bought $1,000 worth of Olaplex’s shares at the IPO in September 2021 would now be looking at an investment worth $53.27.

What Happened?

Shares of hair care company Olaplex jumped 8.4% in the afternoon session after positive sentiment spread through the beauty sector following a bullish analyst note on the industry's outlook. 

The optimism stemmed from a Bank of America report that forecasted a stronger year for the beauty market in 2026. The bank expected industry revenue growth to accelerate to 4.9%, which was double the growth rate of 2025. This upbeat view was based on an anticipated recovery in the Chinese market and continued supportive trends in the U.S. While the report named a competitor as a top pick, its positive projection for the entire sector likely boosted investor confidence in other beauty-related companies like Olaplex.

The shares closed the day at $1.44, up 9.5% from previous close.

Is now the time to buy Olaplex? Access our full analysis report here.

What Is The Market Telling Us

Olaplex’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 3.2% on the news that the stock appeared to give back some of its recent gains following a strong prior performance. 

The move followed a notable run-up. On the last trading day, the stock price gained almost 6%, and over the previous two weeks, it had risen more than 21%. With no major company news released to drive the price, the decline seemed to be a technical correction or investors taking profits after the recent surge. This view was supported by a generally neutral sentiment based on technical indicators, which suggested a lack of strong directional conviction from traders.

Olaplex is down 15.1% since the beginning of the year, and at $1.44 per share, it is trading 31.3% below its 52-week high of $2.09 from December 2024. Investors who bought $1,000 worth of Olaplex’s shares at the IPO in September 2021 would now be looking at an investment worth $58.57.

What Happened?

Shares of hair care company Olaplex fell 3.2% in the morning session after the stock appeared to give back some of its recent gains following a strong prior performance. 

The move followed a notable run-up. On the last trading day, the stock price gained almost 6%, and over the previous two weeks, it had risen more than 21%. With no major company news released to drive the price, the decline seemed to be a technical correction or investors taking profits after the recent surge. This view was supported by a generally neutral sentiment based on technical indicators, which suggested a lack of strong directional conviction from traders.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Olaplex? Access our full analysis report here.

What Is The Market Telling Us

Olaplex’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 4.5% on the news that the stock appeared to rebound on technical factors, moving higher without any clear positive news catalyst. 

This gain occurred against a backdrop of recent underperformance, as the company's shares had sunk by 18.4% over the previous six months. The hair care brand's financial results also showed signs of weakness. Over the last three years, Olaplex's sales fell at a 17.3% annual rate. During that same period, its earnings per share declined by 50.8% each year, indicating the company struggled with its cost structure as demand shrank. In the previous year, its free cash flow margin also dropped. Given the lack of a fundamental driver, the day's price increase seemed to be a technical move.

Olaplex is down 28.1% since the beginning of the year, and at $1.22 per share, it is trading 44% below its 52-week high of $2.17 from December 2024. Investors who bought $1,000 worth of Olaplex’s shares at the IPO in September 2021 would now be looking at an investment worth $49.59.