Yesterday, Olaplex released its third-quarter financial report for the period ending September 30. It revealed disappointing results, with the company missing Wall Street’s sales forecast. Net sales decreased 3.6% year-over-year, totaling $119.1 million, falling short of analysts’ expectations of $127 million. This miss sent Olaplex’s stock tumbling 9.5%, closing at $1.62 per share on Thursday.
Breaking down the sales performance, Olaplex saw a notable decline in its professional sales, which dropped 12.6% to $42.2 million, as well as a 1.3% decrease in specialty retail sales, which totaled $42.6 million. However, there was a silver lining in the form of direct-to-consumer sales, which grew 6.8% to $34.3 million.
Despite this positive shift, Olaplex revised its full-year sales forecast, now expecting net sales to range between $405 million and $415 million. This is a downward adjustment from the previous estimate of $435 million to $463 million, reflecting weaker-than-expected international sales performance and ongoing challenges in boosting demand despite increased marketing investments.
The company also reported a significant drop in net income, which fell 27.3% year-over-year. Adjusted diluted earnings per share were 4 cents, in line with analysts’ expectations.
Commenting on the results, Olaplex’s CEO Amanda Baldwin acknowledged the challenges, stating, “This year has been dedicated to transformation. While we have seen meaningful progress against our strategic goals, we have revised our outlook for fiscal year 2024 as the trajectory of our transformation has shifted, with a particular focus on the realignment of our international business.”
