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 Q2.
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 Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $935.5 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
Sally Beauty achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 10.1% since reporting and currently trades at $16.48.
Is now the time to buy Sally Beauty? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $3.04 billion, up 8.9% year on year, outperforming analysts’ expectations by 1.8%. The business had a strong quarter with a beat of analysts’ EPS estimates and full-year EPS guidance meeting analysts’ expectations.
Ulta delivered the biggest analyst estimate beat among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $548.53.
Is now the time to buy Ulta? Access our full analysis of the earnings results here, it’s free.
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 $1.51 billion, down 2.3% year on year, exceeding analysts’ expectations by 1.2%. It was a satisfactory quarter as it also posted a beat of analysts’ EPS estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Bath and Body Works delivered the slowest revenue growth of the whole group. As expected, the stock is down 8.5% since the results and currently trades at $16.09.
Read our full analysis of Bath and Body Works’s results here.
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 $235.5 million, up 9.8% year on year. This number came in 1% below analysts’ expectations. Zooming out, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.
Warby Parker achieved the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 2.71 million active customers, up 4.2% year on year. The stock is down 6% since reporting and currently trades at $27.52.
Read our full, actionable report on Warby Parker here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
