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Mar 31, 2024
Olaplex Q1 2024 Earnings Report
Olaplex's first quarter results reflected progress on the business transformation plan, with performance encouraging and the company well-positioned to achieve its 2024 goals.
Key Takeaways
Olaplex reported a decrease in net sales by 13.1% to $98.9 million compared to Q1 2023. Diluted EPS was $0.01, and adjusted diluted EPS was $0.03. The company is reiterating its fiscal year 2024 guidance for net sales, adjusted net income, and adjusted EBITDA.
Net sales decreased 13.1% to $98.9 million.
Professional channel decreased 19.9% to $38.7 million.
Specialty Retail decreased 1.2% to $34.4 million.
Direct-To-Consumer decreased 15.7% to $25.7 million.
Olaplex
Olaplex
Olaplex Revenue by Segment
Revenue by Segment
Specialty Retail Revenue
CapyFin.comProfessional Revenue
CapyFin.comDirect-To-Consumer Revenue
CapyFin.com Forward Guidance
The company is reiterating guidance for net sales, adjusted net income and adjusted EBITDA for fiscal year 2024, as initially disclosed by the Company on February 29, 2024.
Positive Outlook
- Adjusted Gross Profit Margin: The Company anticipates adjusted gross profit margin* in the range of 72.5% to 73.1% in fiscal year 2024, compared to 71.4% in fiscal year 2023, due primarily to the lapping of actions taken by the Company to address excess inventory in fiscal year 2023, as well as anticipated efficiencies derived from an internal cost savings program in fiscal year 2024, which is expected to more than offset modestly higher product costs.
- Adjusted SG&A: The Company expects adjusted SG&A* in the range of $172 million to $179 million in fiscal year 2024, an increase of $19 million to $26 million as compared to fiscal year 2023. The increase is expected to be primarily attributable to higher sales and marketing expenses and higher organizational costs due to annualizing the expense of headcount additions made during fiscal 2023.
- Adjusted EBITDA Margin: The Company expects adjusted EBITDA margin* in the range of 32.8% to 34.3% for fiscal year 2024.
- Net Interest Expense: The Company expects net interest expense to be approximately $32 million to $34 million during fiscal year 2024.
- Adjusted Effective Tax Rate: The Company expects an adjusted effective tax rate* of approximately 19.5% to 20.5% for fiscal year 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income