Stocks Plummet Amid Inflation Fears, Edgewell, Herbalife, Inter Parfums, BeautyHealth Shares Fall

Several stocks, including Edgewell Personal Care, Herbalife, Inter Parfums, and BeautyHealth, have fallen amid concerns about inflation and a weakening consumer. The July Producer Price Index showed higher-than-expected inflation, potentially squeezing profit margins and reducing the likelihood of the Federal Reserve cutting interest rates. However, big price drops can present opportunities to buy high-quality stocks. BeautyHealth shares have been volatile, with 73 moves greater than 5% over the last year, but the current move may not fundamentally change the market's perception of the business.

Several stocks, including Edgewell Personal Care (EPC), Herbalife (HLF), Inter Parfums (IPAR), and BeautyHealth (SKIN), have experienced significant drops in the afternoon session following the release of hotter-than-expected inflation data. The July Producer Price Index (PPI) indicated higher-than-expected inflation, which could lead to squeezed profit margins for companies and reduce the likelihood of the Federal Reserve cutting interest rates. This development has sparked concerns among investors about the broader economic outlook and the potential impact on consumer spending.

Edgewell Personal Care, a leading personal care company, saw its shares fall by 3.3%, while Herbalife, another personal care giant, dropped by 3.5%. Inter Parfums, a fragrance company, experienced a 3.1% decline. BeautyHealth, known for its skincare products, saw its shares fall by 6.5%. These declines were driven by market overreactions to the inflation data, which may present opportunities for investors looking to buy high-quality stocks at discounted prices.

BeautyHealth's shares have been particularly volatile, with 73 moves greater than 5% over the last year. The current drop may not fundamentally alter the market's perception of the business, as the company has been navigating macroeconomic headwinds and implementing cost management strategies. BeautyHealth reported strong Q2 2025 results, highlighting growth in consumables revenue and improved margins. The company's shares have been on an upward trajectory, rising from $1.60 to $2.45 since the earnings announcement.

Investors should closely monitor the upcoming quarters for BeautyHealth, as the pace of adoption for new products, the effectiveness of provider engagement programs, and management's ability to mitigate ongoing tariff and macroeconomic headwinds will be critical indicators of the company's performance.

References:
[1] https://finance.yahoo.com/news/edgewell-personal-care-herbalife-inter-203541596.html
[2] https://finance.yahoo.com/news/5-most-interesting-analyst-questions-053322498.html