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Dec 31, 2023
Olaplex Q4 2023 Earnings Report
Olaplex's fourth quarter results were in line with expectations, representing a positive step towards stabilizing demand.
Key Takeaways
Olaplex reported a net sales decrease of 14.5% to $111.7 million in Q4 2023 compared to Q4 2022. Diluted EPS was $0.02, and adjusted diluted EPS was $0.03.
Net sales decreased 14.5% to $111.7 million.
Net sales decreased 27.9% in the United States and decreased 0.7% internationally.
Professional net sales decreased 22.7% to $42.5 million.
Direct-To-Consumer net sales decreased 2.8% to $42.0 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's fiscal year 2024 guidance incorporates management's expectations regarding consumer demand, and investments and actions aimed at driving sell-through, improving upon foundational capabilities, and building a healthier brand.
Positive Outlook
- The Company assumes that the absolute dollar sell-through trend experienced in the second half of 2023, adjusted for seasonality, represents the normalized base level of sell-through for fiscal year 2024.
- The Company’s assumptions also incorporate reasonably expected volume drivers on a product and account level basis.
- 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.
- The Company expects Adjusted SG&A in the range of $172 million to $179 million, an increase of $19 million to $26 million as compared to fiscal year 2023.
- The increase is primarily attributed to higher sales and marketing expenses and higher organizational costs due to annualizing the expense of headcount additions made during fiscal 2023.
Challenges Ahead
- Net Sales $435-$463 million, (5)% to 1% change compared to 2023 Actual
- Adjusted Net Income $87-$100 million, (20)% to (8)% change compared to 2023 Actual
- Adjusted EBITDA $143-$159 million, (18)% to (9)% change compared to 2023 Actual
- The Company expects Adjusted EBITDA margin in the range of 32.8% to 34.3%.
- The Company expects net interest expense to be approximately $32 million to $34 million during fiscal year 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income