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The 6 Need-to-know Hair Launches of Spring — From Color Wow's Hopeful Next Cult-favorite to the First Curly-hair Curling Iron
The 6 Need-to-know Hair Launches of Spring — From Color Wow's Hopeful Next Cult-favorite to the First Curly-hair Curling Iron

Yahoo

time08-04-2025

  • Business
  • Yahoo

The 6 Need-to-know Hair Launches of Spring — From Color Wow's Hopeful Next Cult-favorite to the First Curly-hair Curling Iron

While beauty's post-pandemic growth may be tempering overall, hair care is still up — and likely to stay up. In 2024, the category grew 9 percent in the prestige market and 3 percent on the mass side, and Circana's senior vice president and beauty industry adviser Larissa Jensen anticipates hair will see a double-digit sales surge in the prestige market this year. More from WWD OGX Taps Shay Mitchell as Brand Ambassador EXCLUSIVE: Serena Williams Talks Wyn Beauty's One-year Anniversary and Shopify Partnership Ahead of Two-day Pop-up Event in Los Angeles Brazilian Body Care Brand Gente Beauty Secures Investment From Webster Capital Certain sectors — styling and scalp care, for instance — are particularly poised for further growth, but momentum is all around. Here, WWD spotlights six standout hair launches this spring — from Color Wow's hopeful next cult-favorite to Curlsmith's inaugural curly-hair curling iron. $29 at Founder Tracee Ellis Ross is bolstering Pattern Beauty's scalp-care suite with its first scrub. Made with pink Himalayan sea salt, cucumber, ginger root and fenugreek, the offering is meant to exfoliate dead skin cells and product buildup, also reducing scalp itchiness as a result. The brand did not specify sales expectations for the launch, though industry sources estimate the scrub, which debuts at Sephora before entering Ulta, Macy's and could do between $2 million and $5 million in first-year sales. $30 at Sephora, Color Wow has created a cult-favorite before, and with its next humidity-proof offering (and some Beyoncé-adjacent positioning), it's looking to do it again. Best known for its $28 Dream Coat treatment spray, one of which is sold every 4.4 seconds, the brand is debuting its second and heaviest-duty hairspray yet. Tested in 60 percent humidity conditions, the Texas Hold 'Em spray was found by the brand to deliver 82 percent style retention eight hours after use, on average. It also claims to feature 50 percent less alcohol than other aerosol hairsprays, while requiring less product for more hold. Or in the brand's words, 'less wetter — holds better.' $11.99 each at Target Comprised of eight styling products each priced at $11.99, Tresemmé's A-list collection aims to offer luxury-inspired hair care offerings at an affordable price point. The line includes a smoothing cream; priming, texturizing and shine sprays; a styling stick, bonding oil and even a hair fragrance — which marks a vanilla- and sandalwood-infused first for the Unilever-owned brand. The line also debuts a new, elevated 'T' monogram for Tresemmé as part of its luxury-inspired bid. $189 at Sephora, Designed specifically for use on natural curls, this Curl Reviving Wand features four interchangeable attachments meant to enhance one's natural curl pattern across varying hair types — from loose waves to ultra-tight coils. Suitable for a second- or third-day refresh, the tool offers 13 temperature settings ranging from 220 to 400 degrees Farenheit. Industry sources estimate Curlsmith's sales to be around $50 million annually. $17.99 at Mass market curly-care darling The Doux, which according to Circana holds the number-one position among textured-hair mousses with its $16.99 Mousse Def foam, is introducing an innovative format. Bonita Bubble Balm Foaming Pomade, $17.99, is a cream-to-mousse styler meant for lightweight, medium hold. Suggested as a prep step for braiding or twist-outs, or for loose-curl definition, the pomade is formulated with versatility in mind. Available at Target, Walmart, CVS Pharmacy, Sally Beauty and more, The Doux reports 72 percent year-over-year growth. $25 to $35 at Ulta Beauty, Amazon Powered by a patented squalane-and-omega-9 pairing, this four-step regimen from Wella Professionals aims to smooth strands and fight frizz for up to three days. The collection entails a shampoo, conditioner, a hair mask and a hero Miracle Oil Serum, which claims to nourish strands while creating a protective barrier against environmental aggravators. Best of WWD The 2025 100 Greatest Hair Products of All Time The Best Hairstyles in Grammys History: Rihanna, Lady Gaga and More A Look Back at Grammys Best Hair on the Red Carpet: Taylor Swift, Zendaya and More Photos

Introducing Beauty New York: A Bold New Vision for the Future of Beauty
Introducing Beauty New York: A Bold New Vision for the Future of Beauty

Associated Press

time13-03-2025

  • Business
  • Associated Press

Introducing Beauty New York: A Bold New Vision for the Future of Beauty

NEW YORK CITY, NY / ACCESS Newswire / March 13, 2025 / The beauty industry is about to experience a groundbreaking event like no other. Beauty New York, a multi-day celebration of beauty and innovation, is coming to New York City. From October 15-18, 2025, this immersive event will unite beauty consumers, industry leaders, influencers, and beauty brands for a transformative experience in the beauty capital of the world. Rooted in New York City's iconic beauty legacy, Beauty New York will be a dynamic platform that inspires, educates, and empowers the beauty industry. This isn't just another event-it's a transformative opportunity to drive growth, elevate the beauty business, and shape the future of the industry. Positioned to become a landmark moment in the beauty world, Beauty New York will showcase the power of creativity, innovation, and community in a market that has generated billions in revenue, fueling both the economy and job growth. 'New York City is the largest beauty market in the U.S. on both a dollar and unit basis, and it is growing at a faster rate than total beauty,' says Larissa Jensen, global beauty industry advisor at market research company Circana. Sales of beauty products in New York City totaled over $8.3 billion dollars in 2024, an increase of 5 percent. 'The success of this market is industry-wide, with both mass and prestige retail posting unit growth, which is a strong indicator of the consumer demand in this dynamic city,' says Jensen. (Source: Circana Complete Consumer) Beauty New York will feature an exciting mix of brand activations, cutting-edge product showcases, hands-on masterclasses, thought-provoking leadership forums, and a glittering black-tie gala. Consumers are at the heart of this event, where they can engage directly with brands, explore the latest trends, and fuel the innovation that continues to propel the beauty sector to new heights. 'Beauty New York is a celebration of the energy, diversity, and brilliance that defines the beauty industry,' says Liza Rapay, Vice President, Head of Cosmoprof North America and Founder of Beauty New York. 'New York City is the perfect backdrop for this transformative event-an iconic hub where visionaries from around the world can gather. We're creating a space that amplifies voices from all corners of the industry, from emerging brands to established leaders, and helping to propel the entire business forward with the collective power of innovation and collaboration. Most importantly, we're bringing beauty directly to the consumers who drive this industry, offering them a first-hand experience of the trends, brands, and innovations shaping the future.' For the industry leaders, the festivities will kick off with the Beauty New York Gala on October 15th at the stunning Hall des Lumières, an unforgettable evening celebrating the creativity and innovation shaping the future of the beauty industry. On October 16th, the Beauty New York Voices & Visionaries Forum will bring together the brightest minds from both within and outside the beauty industry featuring curated discussions that will inspire new perspectives and set the course for the future of beauty. On October 17th-18th, the Beauty New York Experience, designed with beauty consumers in mind, will take place at an iconic downtown venue, showcasing the latest beauty innovations. Consumers will have the opportunity to explore immersive displays from both established and emerging brands, attend educational masterclasses, and connect directly with brands for personalized experiences and exclusive insights. Beauty New York is more than just a celebration-it's a pivotal event that will help elevate the beauty industry as a whole, creating new opportunities for connection, growth, and innovation across all areas of the business. Don't miss your chance to be part of New York City's beauty week. Tickets will go on sale in June 2025. For more information, early access, and special offers, visit or stay up to date with the latest news on social @beautynewyorkofficial. About Beauty New York Beauty New York is a groundbreaking, multi-day event coming to the heart of the beauty world-New York City. From October 15th-18th, 2025, this transformative experience will unite beauty consumers, industry leaders, influencers, and beauty brands for the biggest week in beauty. Rooted in New York City's iconic beauty legacy, Beauty New York is more than just an event-it's a dynamic platform that inspires, educates, and empowers the entire beauty community. With an exciting mix of brand activations, cutting-edge product showcases, hands-on masterclasses, thought-provoking forums, and a glittering gala, Beauty New York is designed to drive growth, elevate the beauty industry, and shape its future. At the heart of Beauty New York is the consumer, offering them a unique opportunity to connect directly with the brands shaping the future of beauty. From discovering new trends to gaining exclusive insights, Beauty New York will be a space where creativity, collaboration, and innovation thrive. Founded by Liza Rapay, Beauty New York serves as a reflection of her vision to create a more inclusive and vibrant future for the beauty industry. Beauty New York is organized by USA Beauty LLC, a joint venture between Informa Markets, BolognaFiere and the Professional Beauty Association. DKC

Is Estée Lauder (EL) the Best Beauty Stock to Buy According to Hedge Funds?
Is Estée Lauder (EL) the Best Beauty Stock to Buy According to Hedge Funds?

Yahoo

time06-02-2025

  • Business
  • Yahoo

Is Estée Lauder (EL) the Best Beauty Stock to Buy According to Hedge Funds?

We recently published a list of 12 Best Beauty Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Estée Lauder Companies Inc. (NYSE:EL) stands against other best beauty stocks to buy according to hedge funds. According to a report by McKinsey, in 2023, the global beauty market expanded by 10%, reaching $446 billion in retail sales, mostly due to price hikes rather than volume advances. North America and Europe grew steadily, but the Middle East & Africa (18%) and Latin America (17%) grew at the quickest rates, with China trailing behind at 3% because of poor consumer sentiment. The market is expected to reach $590 billion by 2028 at a compound annual growth rate (CAGR) of 6%, with growing markets and Asia-Pacific driving development. Skincare (44% of the market) had stable growth, while fragrance (14%) was the category with the quickest rate of growth, driven by luxury niche brands. Beauty businesses must employ premiumization, innovation, and skin care-infused cosmetics to transition from price-driven to volume-driven growth to maintain momentum, especially in high-growing markets like the Middle East and India. A significant contributor to the American economy, the beauty industry generated $94.36 billion in sales in 2023 and employed 4.6 million people in manufacturing, retail, and distribution. Costs increased by 6.5% due to inflation, which affected customer spending patterns and raised demand for reasonably priced 'dupes.' In 2023, e-commerce beauty sales reached $21.3 billion, a reflection of changing consumer preferences. Despite economic downturns, consumers continue to make little luxury purchases, a phenomenon known as the 'lipstick effect.' Private equity investors show their confidence in the potential of the beauty industry by continuing to invest in scalable beauty brands. Disruptions in the supply chain have pushed up near-shoring initiatives, which have helped create jobs in the United States. DC Advisory states that 'the beauty sector's adaptability ensures long-term relevance and economic impact.' Recently, as the holiday season approached, the U.S. beauty business was still doing well, with mass market sales up 2% year over year and the prestige market expanding 7% to $22.8 billion, according to Circana. Lipcare sales increased 21% in dollars and 23% in units, due to high demand for tinted balms and oils. As a result of consumers' price sensitivity, mid-range skincare brands are expanding six times faster than luxury skincare. Sales of fragrances surged 14%, with premium brands up 15%, while prestige hair care climbed 8%, driven by style and scalp care items. According to 29% of customers, the Christmas season is a critical time to purchase beauty presents. Larissa Jensen, global beauty industry advisor at Circana stated: 'Prestige beauty epitomizes the indulgence in little luxuries and acts as an indicator of the consumer mindset for the beauty industry overall,' 'This holiday season, its resiliency will be tested. There has been some pullback in spending throughout 2024, but big increases in prestige beauty spend from higher-income households with children under 18-years-old indicate parents are indulging Gen Alpha with these products. The social media virality of this new generation of beauty enthusiasts shows no sign of slowing and could be a pivotal holiday growth driver.' The increasing integration of artificial intelligence (AI) appears to have affected every business, and the beauty industry is no different. AI is already changing the way beauty brands function, and its impact is only going to increase. According to a survey by Perfect Corp., 77% of experts in the beauty industry think that conversational AI agents—like chatbots and virtual assistants—offer unparalleled possibilities for customizing encounters. These tools enable accurate answers to questions, individualized product recommendations, and immediate, round-the-clock customer support. A close-up of a customer's hands selecting beauty products from an online retailer. We sifted through holdings of beauty ETFs and online rankings to form an initial list of 20 beauty stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 900 hedge funds in Q3 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 49 One of the Best Beauty Stocks, Estée Lauder Companies Inc. (NYSE:EL) is the top supplier of high-end beauty products. The company has maintained its preferred vendor status on both physical and digital platforms and strengthened its competitive position with market-leading brands in skin care, cosmetics, and fragrances. Skincare accounts for 51% of the company's Q2 2024 sales, followed by makeup (29%), fragrance (16%), and hair care (4%). The revenue of the beauty behemoth, which operates in over 150 countries, is split as follows: The Americas account for 30%, Europe, the Middle East, and Africa (including retail travel) for 39%, and Asia-Pacific for 31%. Estée Lauder Companies Inc. (NYSE:EL)'s brands include La Mer, Bumble & Bumble, and Aveda. The company has found an expanding customer base for its high-end skincare products, but it has recently battled with a slowdown in China, forcing it to cut its dividend. In Q1 of 2025, Clinique's net sales rose by double digits globally, with growth across all regions. The company benefited from continued strength in the lip subcategory, led by the Clinique Pop and Almost Lipstick product franchises, and new product innovation. Additionally, Estée Lauder Companies Inc. (NYSE:EL) launched in Amazon's U.S. Premium Beauty store in the third quarter of 2024. Le Labo's net sales rose by double digits, mostly due to the Classic Collection's ongoing popularity and the yearly City Exclusive event, which also featured new product innovation. The company also profited from targeted improved consumer reach, including direct-to-consumer, worldwide. Estée Lauder Companies Inc. (NYSE:EL) achieved a 200-point increase in market share in a single quarter, gaining market share in prestige beauty in Mainland China and becoming the top fragrance company in Japan. In the first quarter of fiscal 2025, the company's retail sales increased by double digits, which led to gains in the share of prestige beauty over the previous year. D. E. Shaw's was the largest stakeholder in the company among the funds in Insider Monkey's database at the end of Q3 2024. It owns 3.43 million shares worth $341.49 million as of Q3. Appleseed Fund stated the following regarding The Estée Lauder Companies Inc. (NYSE:EL) in its Q3 2024 : 'Appleseed Fund added four new names to the portfolio in the past six months: The Estée Lauder Companies Inc. (NYSE:EL), Willis Lease Finance (WLFC), Diana Shipping (DSX) and Gravity (GRVY). Estée Lauder is one of the world's largest producers of cosmetics products, and valuation has become very attractive as this premier beauty company is suffering from a post-COVID-19 hangover.' Overall, EL ranks 4th on our list of best beauty stocks to buy according to hedge funds. While we acknowledge the potential for EL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

Is Kenvue Inc. (KVUE) One of the Best Beauty Stocks to Buy According to Hedge Funds?
Is Kenvue Inc. (KVUE) One of the Best Beauty Stocks to Buy According to Hedge Funds?

Yahoo

time05-02-2025

  • Business
  • Yahoo

Is Kenvue Inc. (KVUE) One of the Best Beauty Stocks to Buy According to Hedge Funds?

We recently published a list of 12 Best Beauty Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Kenvue Inc. (NYSE:KVUE) stands against other best beauty stocks to buy according to hedge funds. According to a report by McKinsey, in 2023, the global beauty market expanded by 10%, reaching $446 billion in retail sales, mostly due to price hikes rather than volume advances. North America and Europe grew steadily, but the Middle East & Africa (18%) and Latin America (17%) grew at the quickest rates, with China trailing behind at 3% because of poor consumer sentiment. The market is expected to reach $590 billion by 2028 at a compound annual growth rate (CAGR) of 6%, with growing markets and Asia-Pacific driving development. Skincare (44% of the market) had stable growth, while fragrance (14%) was the category with the quickest rate of growth, driven by luxury niche brands. Beauty businesses must employ premiumization, innovation, and skin care-infused cosmetics to transition from price-driven to volume-driven growth to maintain momentum, especially in high-growing markets like the Middle East and India. A significant contributor to the American economy, the beauty industry generated $94.36 billion in sales in 2023 and employed 4.6 million people in manufacturing, retail, and distribution. Costs increased by 6.5% due to inflation, which affected customer spending patterns and raised demand for reasonably priced 'dupes.' In 2023, e-commerce beauty sales reached $21.3 billion, a reflection of changing consumer preferences. Despite economic downturns, consumers continue to make little luxury purchases, a phenomenon known as the 'lipstick effect.' Private equity investors show their confidence in the potential of the beauty industry by continuing to invest in scalable beauty brands. Disruptions in the supply chain have pushed up near-shoring initiatives, which have helped create jobs in the United States. DC Advisory states that 'the beauty sector's adaptability ensures long-term relevance and economic impact.' Recently, as the holiday season approached, the U.S. beauty business was still doing well, with mass market sales up 2% year over year and the prestige market expanding 7% to $22.8 billion, according to Circana. Lipcare sales increased 21% in dollars and 23% in units, due to high demand for tinted balms and oils. As a result of consumers' price sensitivity, mid-range skincare brands are expanding six times faster than luxury skincare. Sales of fragrances surged 14%, with premium brands up 15%, while prestige hair care climbed 8%, driven by style and scalp care items. According to 29% of customers, the Christmas season is a critical time to purchase beauty presents. Larissa Jensen, global beauty industry advisor at Circana stated: 'Prestige beauty epitomizes the indulgence in little luxuries and acts as an indicator of the consumer mindset for the beauty industry overall,' 'This holiday season, its resiliency will be tested. There has been some pullback in spending throughout 2024, but big increases in prestige beauty spend from higher-income households with children under 18-years-old indicate parents are indulging Gen Alpha with these products. The social media virality of this new generation of beauty enthusiasts shows no sign of slowing and could be a pivotal holiday growth driver.' The increasing integration of artificial intelligence (AI) appears to have affected every business, and the beauty industry is no different. AI is already changing the way beauty brands function, and its impact is only going to increase. According to a survey by Perfect Corp., 77% of experts in the beauty industry think that conversational AI agents—like chatbots and virtual assistants—offer unparalleled possibilities for customizing encounters. These tools enable accurate answers to questions, individualized product recommendations, and immediate, round-the-clock customer support. A pharmacist at a local store, stocking shelves with products from the consumer health company. We sifted through holdings of beauty ETFs and online rankings to form an initial list of 20 beauty stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 900 hedge funds in Q3 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 46 One of the Best Beauty Stocks, Kenvue Inc. (NYSE:KVUE) is the world's largest pure-play consumer health company by revenue, with $15 billion in annual revenue. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The company, formerly the consumer division of Johnson & Johnson, spun out and went public in May 2023. Analysts anticipate that Kenvue would prioritize expanding its 15 priority brands—including Tylenol, Nicorette, Listerine, and Zyrtec—to fuel future growth, given its ability to use funds and make investments as a stand-alone company. Many of the most well-known brands in the industry are included in its portfolio, including Johnson's, Neutrogena, Listerine, Tylenol, and Aveeno. A number of the firm's brands are the global leaders in their respective segments because of their tremendous brand power, despite operating in a fragmented business with fierce competition and constantly shifting customer tastes. The Self Care division of Kenvue Inc. (NYSE:KVUE) maintained its market share gain in Q3 2024, showing broad-based growth bolstered by 2.5% value realization through carry-over pricing measures. Volume decreased, though, which was somewhat countered by increases in Essential Health. Although demand was still low, Skin Health & Beauty observed early signs of recovery, which affected overall performance. Value realization was increased by pricing changes, while volume weakness had an adverse effect. Despite these obstacles, the firm is nevertheless dedicated to long-term, profitable growth, using its Vue Forward strategy to improve its market position through efficiency measures and brand reinvestments. Natixis Global Asset Management's was the largest stakeholder in the company from among the funds in Insider Monkey's database at the end of Q3 2024. It owns 31.46 million shares worth $727.66 million as of Q3. Overall, KVUE ranks 5th on our list of best beauty stocks to buy according to hedge funds. While we acknowledge the potential for KVUE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KVUE but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

Is Bath & Body Works (BBWI) Among the Best Beauty Stocks to Buy According to Hedge Funds?
Is Bath & Body Works (BBWI) Among the Best Beauty Stocks to Buy According to Hedge Funds?

Yahoo

time05-02-2025

  • Business
  • Yahoo

Is Bath & Body Works (BBWI) Among the Best Beauty Stocks to Buy According to Hedge Funds?

We recently published a list of 12 Best Beauty Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Bath & Body Works, Inc. (NYSE:BBWI) stands against other best beauty stocks to buy according to hedge funds. According to a report by McKinsey, in 2023, the global beauty market expanded by 10%, reaching $446 billion in retail sales, mostly due to price hikes rather than volume advances. North America and Europe grew steadily, but the Middle East & Africa (18%) and Latin America (17%) grew at the quickest rates, with China trailing behind at 3% because of poor consumer sentiment. The market is expected to reach $590 billion by 2028 at a compound annual growth rate (CAGR) of 6%, with growing markets and Asia-Pacific driving development. Skincare (44% of the market) had stable growth, while fragrance (14%) was the category with the quickest rate of growth, driven by luxury niche brands. Beauty businesses must employ premiumization, innovation, and skin care-infused cosmetics to transition from price-driven to volume-driven growth to maintain momentum, especially in high-growing markets like the Middle East and India. A significant contributor to the American economy, the beauty industry generated $94.36 billion in sales in 2023 and employed 4.6 million people in manufacturing, retail, and distribution. Costs increased by 6.5% due to inflation, which affected customer spending patterns and raised demand for reasonably priced 'dupes.' In 2023, e-commerce beauty sales reached $21.3 billion, a reflection of changing consumer preferences. Despite economic downturns, consumers continue to make little luxury purchases, a phenomenon known as the 'lipstick effect.' Private equity investors show their confidence in the potential of the beauty industry by continuing to invest in scalable beauty brands. Disruptions in the supply chain have pushed up near-shoring initiatives, which have helped create jobs in the United States. DC Advisory states that 'the beauty sector's adaptability ensures long-term relevance and economic impact.' Recently, as the holiday season approached, the U.S. beauty business was still doing well, with mass market sales up 2% year over year and the prestige market expanding 7% to $22.8 billion, according to Circana. Lipcare sales increased 21% in dollars and 23% in units, due to high demand for tinted balms and oils. As a result of consumers' price sensitivity, mid-range skincare brands are expanding six times faster than luxury skincare. Sales of fragrances surged 14%, with premium brands up 15%, while prestige hair care climbed 8%, driven by style and scalp care items. According to 29% of customers, the Christmas season is a critical time to purchase beauty presents. Larissa Jensen, global beauty industry advisor at Circana stated: 'Prestige beauty epitomizes the indulgence in little luxuries and acts as an indicator of the consumer mindset for the beauty industry overall,' 'This holiday season, its resiliency will be tested. There has been some pullback in spending throughout 2024, but big increases in prestige beauty spend from higher-income households with children under 18-years-old indicate parents are indulging Gen Alpha with these products. The social media virality of this new generation of beauty enthusiasts shows no sign of slowing and could be a pivotal holiday growth driver.' The increasing integration of artificial intelligence (AI) appears to have affected every business, and the beauty industry is no different. AI is already changing the way beauty brands function, and its impact is only going to increase. According to a survey by Perfect Corp., 77% of experts in the beauty industry think that conversational AI agents—like chatbots and virtual assistants—offer unparalleled possibilities for customizing encounters. These tools enable accurate answers to questions, individualized product recommendations, and immediate, round-the-clock customer support. A female customer browsing a variety of body care products in a retail store. We sifted through holdings of beauty ETFs and online rankings to form an initial list of 20 beauty stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 900 hedge funds in Q3 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 36 One of the Best Beauty Stocks, Bath & Body Works, Inc. (NYSE:BBWI) is a business of scented personal care products and specialized home fragrances that goes by the names White Barn, C.O. Bigelow, and Bath & Body Works. It is an established business among consumers seeking fragrances, personal care creams and soaps, candles, air fresheners, house fragrances, and other flavoring items. The leading brand in personal care and home fragrance has 480 franchises internationally, in addition to 1,850 outlets in North America. Third-quarter 2024 net sales for Bath & Body Works, Inc. (NYSE:BBWI) were $1.61 billion, up by 3% YoY from $1.56 billion in Q3 2023. Its targeted implementation of the five E strategy and strategic investments are driving the business toward long-term, profitable growth. Elevating the company's brand and core products, interacting creatively with its core clientele, expanding into new markets and adjacent areas, improving the omnichannel experience, and boosting operational excellence and efficiency are the five E's of its strategy. In fiscal quarter three of 2024, it made progress in each of these areas. In Q3 of 2024, Bath & Body Works, Inc. (NYSE:BBWI)'s $0.49 earnings per diluted share were above the company's forecast. Net income was $106 million, while operating income was $218 million, up from $221 million the previous year. Adjusted earnings per share increased to $0.48 after excluding a one-time gain in 2023. The company raised its projection for fiscal year 2024, predicting a 1.7% to 2.5% fall in full-year net sales and an adjusted EPS of $3.15 to $3.28. A calendar shift is anticipated to cause net sales to drop 4.5% to 6.5% in Q4 2024, with an expected EPS of $1.94 to $2.07. Strong innovation, marketing expenditures, and a dynamic U.S.-based supply chain were highlighted by CEO Gina Boswell as the main sources of momentum as the holiday season approached. Another priority for Bath & Body Works, Inc. (NYSE:BBWI) is store expansion. The conclusion of fiscal Q3 2024 saw the opening of its 500th overseas location in London. Its partner store openings for the year are on schedule, with approximately 50 net new stores. The price objective for Bath & Body Works, Inc. (NYSE:BBWI) was increased by Wells Fargo from $32 to $38. Although Bath & Body Works' inflection is finally beginning to take shape, the company claims that the improved top line comes at the sacrifice of margin. Wells continues, 'All in, better than feared with numbers going up, but the debate probably carries on.' Overall, BBWI ranks 9th on our list of best beauty stocks to buy according to hedge funds. While we acknowledge the potential for BBWI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBWI but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

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