Microsoft shares jump after fourth-quarter earnings beat on AI-fueled cloud growth
On Wednesday, Piper Sandler released findings from its 49th semi-annual Teen Survey, which revealed that beauty spending among teens has reached new heights, defying a broader category slowdown. The survey, which included responses from 6,455 teens across 43 states, showed that beauty spend among female teens grew to double digits, with the core beauty wallet expanding by 10% year-over-year to an average of $374. This marks the highest level recorded since the survey's inception in Spring 2007. Fragrance emerged as a particularly strong category, with female annual spend surging 22% year-over-year and male spend jumping 44% year-over-year.Want to capitalize on these beauty industry trends? InvestingPro offers exclusive insights and financial metrics to help investors identify promising opportunities in the beauty sector.
In light of these findings, Piper Sandler has upgraded shares of Bath & Body Works, Inc. (NYSE:BBWI) to Overweight. The firm noted that BBWI, along with Inter Parfums (EPA:IPAR), Inc. (NASDAQ:IPAR), is well-positioned to benefit from the increasing demand in the fragrance category. Inter Parfums, in particular, was highlighted for its pricing power and the strength of its fragrance portfolio, despite the competitive and fragmented market.
The survey also pointed to the shifting landscape of beauty retail, with specialty stores being the preferred shopping destination for teens, although digital offerings are gaining traction. Notably, TikTok has become a top 10 beauty shopping destination for females for the first time, while BBWI has ascended to the third spot after being absent from the top 10 for over six years. With a solid revenue growth of 21.27% in the last twelve months and an attractive dividend yield of 4%, SHB (HM:SHB) shows promising fundamentals in this evolving market landscape.
Coty Inc . (NYSE:COTY) was also mentioned in the survey findings, with its core beauty wallet registering a 10% year-over-year increase. Coty's fragrance brands, which account for over 60% of its total sales, continue to hold significant mindshare among teens, with brands like Burberry (LON:BRBY), Marc Jacobs, and Gucci ranking in the top 20 for females, and Gucci, Nautica, and Burberry for males. However, CoverGirl, one of Coty's cosmetics brands, slipped slightly in the rankings.
The survey's insights into Inter Parfums' performance showed that the brand Coach (NYSE:TPR) climbed in popularity among female fragrance brands, moving up to the 16th spot from 17th in the previous survey. Although Inter Parfums did not have any brands in the top 20 for males, the overall increase in fragrance spend and usage frequency among teens supports the company's growth prospects in this category.
In other recent news, Shaftesbury Capital has seen several notable developments. BofA Securities has adjusted its rating on Shaftesbury Capital, moving the stock from Underperform to Neutral, though it lowered the price target to GBP1.35 from GBP1.50. This adjustment reflects a perceived 19% potential total shareholder return based on the new price objective. Shaftesbury Capital is currently trading at a 5.3% implied capitalization rate and a 45% discount to its estimated Net Disposal Value for 2026, which BofA believes reflects the company's prospects for rent growth and asset value stabilization. Notably, the consensus on Shaftesbury's earnings per share for 2025 has been reduced by 15% over the past six months. BofA's forecasts now sit 7% below the average street estimates for EPS and dividends from 2024 to 2026. This represents a shift from earlier in 2024 when BofA's estimates were 12% and 13% lower than consensus for EPS and dividends, respectively. These updates from BofA Securities highlight a recalibration of expectations for Shaftesbury Capital in light of recent market performance and earnings projections.
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