Two ladies hiding behind their cotton candy, and smiling on the sidewalk.
Two women with cotton candy smile.
Two woman outdoors eating their cotton candy as they are walking on the sidewalk smiling.
Two women is a rephrading of two ladies. Smiling can not happen with out a smile.
"Two women with cotton candy smile" is a rephrasing of "Two ladies hiding behind their cotton candy, and smiling on the sidewalk."