Beauty Health stock soars 30% on plans of cutting costs

Beauty Health Co (NASDAQ: SKIN) jumped 30% after announcing cost cuts and a new stock buyback programme on Tuesday.

Beauty Health stock up on buyback plans

The California-based company that owns “Hydrafacial” plans on repurchasing $100 million worth of its shares, as per a press release today.

Beauty Health expects to cut its yearly costs by more than $20 million in the first phase of the transformation programme that it announced this morning. According to its Chief Executive Officer – Andrew Stanleick:

The transformation programme is an important step towards delivering our long-term growth and profitability targets in 2025 and beyond.

Beauty Health stock is still down close to 50% versus its year-to-date high. Following today’s rally, though, the market cap of this skincare products company is approaching the billion-dollar territory again.

Beauty Health is committed to profitability

Beauty Health forecasts the second phase of transformation that is expected to focus on driving manufacturing efficiencies to lower its annual costs by another $15 million.

All in all, the two-phase plan will cut costs and streamline operations to boost profitability. CEO Stanleick also said in today’s press release:

The actions announced today reflect our commitment to creating shareholder value.

The Nasdaq-listed firm will update on the aforementioned programme in November. Last month, it reported financial results for the second quarter that came in a bit ahead of Street estimates. Wall Street currently has a consensus “overweight” rating on Beauty Health stock.