Olaplex Holdings Inc Reports Second Quarter 2024 Financial Results

authorIntellectia.AI2024-08-06
5
OLPX.O
Illustration by Intellectia.AI

Olaplex Holdings, Inc. Reports Second Quarter 2024 Financial Results

Olaplex Holdings, Inc. (NASDAQ: OLPX) ("OLAPLEX" or the "Company") today announced its financial results for the second quarter ended June 30, 2024.

Key Financial Metrics

Metric Q2 2023 Q2 2024 Y/Y Change Consensus Estimate Actual vs. Estimate
Total Revenue $109.2M $103.9M -4.8% $103.64M +0.25%
Diluted EPS $0.01 $0.01 0% $0.03 -$0.02
Adjusted Diluted EPS $0.03 $0.03 0% $0.03 In line

Interpretation : Olaplex Holdings reported a slight decline in net sales year-over-year, while maintaining their diluted EPS and adjusted diluted EPS from the same quarter last year. Despite not meeting the consensus EPS estimate, their revenue slightly exceeded expectations.

Revenue Performance by Segment

Segment Q2 2023 Q2 2024 Y/Y Change
Specialty Retail $29.7M $36.4M +22.4%
Professional $40.9M $33.4M -18.4%
Direct-To-Consumer $38.5M $34.1M -11.5%

Interpretation : The specialty retail segment showed strong growth, while professional and direct-to-consumer segments experienced declines. This mixed segment performance could indicate shifting consumer preferences or market conditions affecting different channels differently.

Comments from Company Officers

Amanda Baldwin, OLAPLEX's Chief Executive Officer, stated, "Our second quarter performance was in line with our expectations and demonstrated continued stabilization in the business. I am encouraged by the progress we are making on our transformation journey as we delivered on our goals for the first half of the year and are now shifting our focus to the back half of 2024 and beyond. I am confident in the direction we are taking the brand and remain incredibly excited about the long-term growth potential for OLAPLEX."

Forward Guidance

The company reiterated its guidance for net sales, adjusted net income, and adjusted EBITDA for fiscal year 2024, reflecting management's expectations for consumer demand, investments, and actions aimed at driving sell-through, improving foundational capabilities, and building a healthier brand.

Stock Price Movement

Following the earnings release, Olaplex Holdings, Inc.'s stock experienced a decrease of approximately 0.81%.

In conclusion, Olaplex Holdings' Q2 2024 results indicate stable performance with significant gains in specialty retail. However, challenges persist in professional and direct-to-consumer segments. The company's commitment to its transformation journey and its positive future outlook are key takeaways from this quarter's results.

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