Hair-care brand Olaplex projects sales to be at least $20 million lower than previously expected according to third-quarter 2024 results, indicating the companyâs comeback efforts have not yet taken hold.
In the results released today, the company changed its 2024 net sales guidance to $405â$415 million, down from a prior outlook of $435â$463 million. Net income is now expected to be between $67â$73 million, and adjusted EBITDA to be between $121â$127 million.
The lower outlook is due to a realignment of international distribution, limited international marketing, lower-than-expected sales results from recent marketing efforts and plans for increased holiday promotional activity.
Year-over-year net sales for the quarter declined by 3.6 percent to $119.1 million, with professional, DTC and specialty retail all seeing a decrease. Adjusted EBITDA declined by 13.4 percent and gross profit decreased by 2.2 percent.
On Olaplexâs third-quarter earnings call, CEO Amanda Baldwin said the company is continuing to focus on improving the professional channel, which had the biggest sales slide at 12.6 percent for the quarter. She also highlighted a revamped marketing strategy with the July 2024 hire of former Marc Jacobs executive Katie Gohman as its new CMO.
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Olaplex Sales Fall, But Company Says Recovery Is on Track
Sales in speciality retail stores rose 22.4 percent, but were dragged down by poor performance in its professional and direct-to-consumer channels.
