NEW YORK - Olaplex Holdings Inc. (NASDAQ:OLPX) shares tumbled 8% in after-hours trading on Tuesday after the hair care products maker reported soft second-quarter results and reiterated weak full-year guidance.
The company posted adjusted earnings per share of $0.03, in line with analyst estimates. Revenue fell 4.8% YoY to $103.9 million, slightly above the consensus forecast of $103.7 million but reflecting continued weakness across key segments.
Olaplex's professional channel saw an 18.4% YoY decline in sales to $33.4 million, while direct-to-consumer revenue dropped 11.5% to $34.1 million. This offset a 22.4% gain in specialty retail sales to $36.4 million.
"Our second quarter performance was in line with our expectations and demonstrated continued stabilization in the business," said CEO Amanda Baldwin in a statement.
However, the company maintained its downbeat full-year outlook, projecting 2024 revenue of $435-463 million, implying a potential 5% YoY decline at the midpoint.
The guidance falls short of Wall Street's expectations for $450.9 million in 2024 sales. Olaplex also forecast adjusted net income of $87-100 million, down 8-20% from 2023 levels.
While U.S. sales grew 7.3% in Q2, international revenue plunged 15.1%, highlighting ongoing challenges in key overseas markets. The company ended the quarter with $507.9 million in cash and $646.4 million in long-term debt.
Despite expressing confidence in Olaplex's long-term potential, Baldwin acknowledged the company is still in a "transformation journey" as it attempts to stabilize and return to growth.
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