Beauty Health Stock Jumps on Earnings. Its CEO Says There’s No Sign of a Slowdown.

Beauty Health sells the HydraFacial system.

Hai Ngo/BuisnessWire

Shares of Beauty Health Co. jumped more than 8% in early trading, boosted by the beauty and skincare company’s strong second-quarter revenue and higher guidance. Its CEO says the company isn’t seeing any slowdown in demand, despite more widespread worries about consumer spending.

Beauty Health (ticker: SKIN), which sells the HydraFacial system, said revenue for the quarter ended June 30 was $103.5 million, far above the $83.9 million analysts were expecting.

The company said net sales rose double digits in percent terms in each region during the quarter, while the number of HydraFacial systems—the machinery for its signature three-step noninvasive hydradermabrasion skincare treatment—jumped by more than 85%, to more than 23,000.

Beauty Health raised its full fiscal year guidance for net sales by $10 million to a range of $340 million to $350 million; consensus calls for sales of $337.4 million.

“So far we’ve seen no slow down at all in our momentum,” Chief Executive Officer Andrew Stanleick told Barron’s.

Stanleick said that the market for beauty and health has proven very resilient during tougher economic times. He added that even during the Great Financial Crisis—when Beauty Health was a privately held company—it still recorded growth. With the HydraFacial priced at $150 to start, it may still be a luxury item for many, but more easily accessible than other high-end beauty treatments.

Indeed, the company is in “daily contact with thousands of providers every day, and they’re seeing no slowdown,” outside of extreme situations like lockdowns in Asia. “The business is extremely robust, and that’s given us the confidence” to raise the full-year outlook.

The CEO highlighted Beauty Health’s recurring revenue model, from its growing installed base of HydraFacial systems—as well as increasing demand for Syndeo, its new HydraFacial delivery system.

He also notes that men, which make up about 20% of Beauty Health’s business, continue to be a growing part of the company’s customer base. It’s part of the so-called “Zoom boom,” he says: “Like it or not, our faces are now our digital business cards.”

The stock climbed 8.1% to $16.50 in recent trading.

Write to Teresa Rivas at teresa.rivas@barrons.com

Author: Health Watch Minute

Health Watch Minute Provides the latest health information, from around the globe.