OLAPLEX Reports Third Quarter 2024 Results

Core Insights - Olaplex Holdings, Inc. reported a decrease in net sales and net income for the third quarter of 2024 compared to the same period in 2023, indicating challenges in the business transformation and international realignment efforts [2][3][9]. Financial Performance - For Q3 2024, net sales decreased by 3.6% to $119.1 million compared to $123.6 million in Q3 2023 [3][5]. - By channel, professional sales decreased by 12.6% to $42.2 million, while direct-to-consumer sales increased by 6.8% to $34.3 million [3][5]. - Net income for Q3 2024 decreased by 27.3% to $14.8 million, with diluted EPS at $0.02 compared to $0.03 in Q3 2023 [3][5][26]. - For the nine months ended September 30, 2024, net sales were $321.9 million, down 7.1% from $346.6 million in the same period of 2023 [6][26]. Guidance and Outlook - The company updated its fiscal year 2024 guidance, lowering net sales expectations to a range of $405-$415 million from the previous $435-$463 million [9][10]. - Adjusted net income guidance was revised down to $67-$73 million from $87-$100 million [9][10]. - The anticipated adjusted EBITDA margin for fiscal year 2024 is now expected to be between 29.9% and 30.6%, down from the previous estimate of 32.8% to 34.3% [10]. Balance Sheet Highlights - As of September 30, 2024, the company had cash and cash equivalents of $538.8 million, an increase from $466.4 million at the end of 2023 [7][23]. - Inventory decreased to $85.9 million from $95.9 million at the end of 2023 [7][23]. - Long-term debt was reported at $645.0 million, slightly down from $649.0 million at the end of 2023 [7][23]. Strategic Focus - The CEO emphasized a commitment to product innovation and strengthening the professional community, while acknowledging the need for realignment in international business operations [2][8]. - The company is focusing on building a healthier business through new sales and marketing investments and has confidence in its brand's potential for sustained growth [2][8].