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Susan Anderson, managing director at Canaccord Genuity Susan Anderson, managing director at Canaccord Genuity <\/p>\nSusan Anderson, CFA and managing director at Canaccord Genuity, joins BNN Bloomberg to share her Hot Picks in retail. <\/p>\n
Retail stocks in healthcare, fragrance and beauty are drawing attention as demand stays strong and recent pullbacks create buying opportunities.<\/p>\n
Susan Anderson, managing director at Canaccord Genuity, highlights Prestige Consumer Healthcare, Interparfums and Sally Beauty Holdings as her top retail picks. <\/p>\n
Key TakeawaysDemand in healthcare, fragrance and beauty remains resilient in retail.Pullbacks have created buying opportunities in high-quality consumer names.Growth is supported by innovation, brand extensions and store remodels.Analysts see upside from industry expansion, free cash flow and buybacks.Valuations remain attractive, with potential for multiple expansion.Susan Anderson, managing director at Canaccord Genuity Susan Anderson, managing director at Canaccord Genuity <\/p>\n
Read the full transcript below:<\/p>\n
ANDREW: Time for Hot Picks. We\u2019re branding this as retail, but it\u2019s essentially consumer-facing companies. Our guest\u2019s first idea is Prestige Consumer Healthcare, which she calls a high-margin, high-quality stock. We\u2019re joined by Susan Anderson, managing director at Canaccord Genuity. Susan, great to see you and thanks for joining us. Remind us what Prestige is all about. As far as I know, they take over orphan brands and rejuvenate them. Tell us what you like about the company.<\/p>\n
SUSAN: Prestige is a stable name in the over-the-counter space, with a portfolio of niche brands such as Dramamine and Nyx. These categories face limited competition, and large consumer packaged goods companies don\u2019t usually compete there because the categories are too small to move the revenue needle. Instead, those players focus on mega categories such as cough and cold. PBH has best-in-class margins in the low-30 per cent range and solid free cash flow, which they have used for share buybacks and acquisitions. The stock pulled back on supply chain issues in their eye care business, but those should be fixed in the back half of this fiscal year. They recently bought a Canadian eye care manufacturer to bring some production in-house, reducing future risks. We see this as a high-quality, high-margin, staple-like name with solid free cash flow. The yield is about nine per cent. The stock trades at 13 times next year\u2019s numbers, compared with high teens previously and about 20 times for large-cap personal care players that often have lower margins. We think this is an attractive entry point.<\/p>\n
ANDREW: And these are brands that have been neglected because the big CPG companies find them too small, as you say.<\/p>\n
SUSAN: Exactly. They\u2019re very niche brands. Usage is typically every one to three years, when a consumer has an issue. They\u2019ll go with the brand name over a private label, which is why there\u2019s limited private-label competition.<\/p>\n
ANDREW: That\u2019s interesting. Interparfums \u2014 what do they do, and where\u2019s the attraction?<\/p>\n
SUSAN: They operate in the fragrance category with most products licensed from luxury or lifestyle brands. Fragrance has been one of the strongest performers within beauty, which itself has held up well. The category is expected to grow mid-single digits in the back half of the year. That sets up Interparfums for continued solid growth. Beauty and fragrance usually hold up even in weaker macro environments. Even with high inflation, consumers are still prioritizing the category. We think IPAR is well positioned with new launches, such as its Solf\u00e9rino brand, and extensions from Ferragamo and DKNY. These should help it gain market share and grow above industry levels. The company does have some tariff exposure, but that appears manageable. It is adjusting supply chains and selectively raising prices. The stock has also pulled back and now trades at just under 18 times next year\u2019s earnings, versus 25 times over the past three years. We think this is a very attractive entry point.<\/p>\n
ANDREW: And finally, Sally Beauty Holdings. What are they all about?<\/p>\n
SUSAN: Sally is a beauty retailer that has been a relatively sleepy company but is finding new growth. About 40 per cent of sales come from hair colouring and 80 per cent from colouring and maintenance combined. They operate a pro channel, selling wholesale to stylists, and a retail channel that sells professional-grade hair and nail products to consumers. They have a near-monopoly in professional hair colour because of their selection. The company has been reinvigorating its business with new products, store remodels and cost-efficiency programs. Growth initiatives include store refreshes, digital tools, expanded professional distribution, and expansion into new categories such as skin care. They are also testing a new store format, Happy Beauty Co. A \u201cFuel for Growth\u201d program is expected to save US$120 million next year, pushing EBIT margins back to double digits from an estimated 8.6 per cent this year. The stock trades at about seven times next year\u2019s earnings, compared with high single digits to low teens for other specialty retailers. With expected high single-digit to double-digit earnings growth, we think there is strong potential for multiple expansion.<\/p>\n
ANDREW: Thank you very much. Those were three names that many viewers may not be familiar with. We appreciate it. Susan Anderson, managing director at Canaccord Genuity.<\/p>\n
DISCLOSUREPERSONALFAMILYPORTFOLIO\/FUNDPHB NYSENNNIPAR NASDAQNNNSBH NYSENNN<\/p>\n
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This BNN Bloomberg summary and transcript of the Sept. 23, 2025 interview with Susan Anderson are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.<\/p>\n","protected":false},"excerpt":{"rendered":"Susan Anderson, CFA and managing director at Canaccord Genuity, joins BNN Bloomberg to share her Hot Picks in…\n","protected":false},"author":2,"featured_media":179284,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[49,48,84,392],"class_list":{"0":"post-179283","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-ca","9":"tag-canada","10":"tag-health","11":"tag-healthcare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/179283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=179283"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/179283\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/179284"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=179283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=179283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=179283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}