By Jorge Mercado Monday, November 11th, 2024

Montecito-based Olaplex missed analyst expectations in both revenue and net income when it announced its earnings for the third quarter of 2024.

Announced Nov. 7, Olaplex noted that sales decreased 3.6% to $119.1 million in the third quarter of 2024.
As a result, net income decreased 27.3% to $14.7 million and adjusted net income decreased 13.8% to $28.7 million, which equates to three cents per share for the quarter ended Sept. 30.

Analysts expected revenue to be at $126.5 million while adjusted net income was expected to be 4 cents per share, according to FactSet.

CEO Amanda Baldwin also said that the company would be revising its full-year results given the down quarter.

Revenue is now expected to be between $405 and $415 million as opposed to $435 and $463 million while adjusted net income is expected to be between $67 and $73 million compared to adjusted net income of $87 and $100 million.

“This year has been dedicated to transformation and we continue to make strides on our plan to prioritize product innovation and the Professional community,” Baldwin said.

“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.”

Net sales decreased 3.3% in the United States and decreased 3.9% internationally. Moreover, professional sales decreased 12.6% to $42.2 million.

Direct-to-consumer sales are the only channel that increased, seeing a 6.8% raise in sales to $34.3 million.

Olaplex ended the quarter with $538.8 million of cash and cash equivalents, compared to $466.4 million as of Dec. 31.