What Happened?
Shares of skincare company BeautyHealth (NASDAQ: SKIN) jumped 3.2% in the afternoon session after the release of a favorable Consumer Price Index (CPI) report, which showed inflation cooling more than anticipated. The July report from the Bureau of Labor Statistics indicated a year-over-year inflation rate of 2.7%, just below the 2.8% economists had forecast. This suggests that price pressures on consumers may be easing. Particularly beneficial for the sector was the news that the food index remained flat, with grocery prices even declining by 0.1% month-over-month. This development is seen as a positive for the profitability of food, beverage, and personal care companies, as lower input costs and increased consumer purchasing power could boost sales.
A Federal Reserve official's comments on the same day, noting that consumer spending fundamentals remain solid, further bolstered investor confidence in the sector's resilience.
After the initial pop the shares cooled down to $2.26, up 2.2% from previous close.
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What Is The Market Telling Us
BeautyHealth’s shares are extremely volatile and have had 73 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 4 days ago when the stock gained 20.6% on the news that the company reported second-quarter financial results that significantly beat analyst expectations on profitability and raised its full-year outlook. The company posted earnings per share of $0.03, decisively beating analyst estimates of a $0.05 loss, while revenue of $78.2 million also topped forecasts. Although total sales decreased by 13.7% compared to the previous year, investors were encouraged by a significant improvement in profitability, with adjusted EBITDA of $13.9 million significantly exceeding the consensus estimate of $3.59 million. The strong results were driven by a notable increase in gross profit margin, which expanded by 17.6 percentage points year on year. Bolstered by this performance, Beauty Health raised its full-year guidance for both net sales and adjusted EBITDA, signaling confidence in its ongoing strategy.
BeautyHealth is up 40.7% since the beginning of the year, and at $2.26 per share, it is trading close to its 52-week high of $2.28 from July 2025.
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