08.09.23
Olaplex shares fell 25% after the hair care company cut its full-year sales guidance following a disappointing second quarter. Olaplex is forecasting net sales in the range of $445 million to $465 million for fiscal-year 2023. That's about 25% less than its previous forecast. The company went public through an initial public offering in 2021. In early morning trading, Olaplex shares were priced at $2.96. That's down from a high of $6.89 in February.
According to CEO JuE Wong, Olaplex's results have been hurt by increased competition, more promotions and misinformation related to the brand. In particular, in a suit against Olaplex, several plaintiffs claimed they have sustained personal injuries to their hair and scalp including hair loss and damaged hair. Olaplex denies the charges.
For the second quarter ended June 30, net sales fell 48.2% to $109.2 million. Direct-to-consumer sales fell 6.4% to $38.5 million. Specialty retail sales fell 53.7% to $29.8 million. By region, US sales fell 58.7% and international sales fell 34%. Net income plunged more than 90% to $6.2 million.
Olaplex Enters Lash Category
According to CEO JuE Wong, Olaplex's results have been hurt by increased competition, more promotions and misinformation related to the brand. In particular, in a suit against Olaplex, several plaintiffs claimed they have sustained personal injuries to their hair and scalp including hair loss and damaged hair. Olaplex denies the charges.
For the second quarter ended June 30, net sales fell 48.2% to $109.2 million. Direct-to-consumer sales fell 6.4% to $38.5 million. Specialty retail sales fell 53.7% to $29.8 million. By region, US sales fell 58.7% and international sales fell 34%. Net income plunged more than 90% to $6.2 million.
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Olaplex's Q1 2023 Net Sales Decline 38.9%.Olaplex Enters Lash Category