Shares of Olaplex Holdings, Inc. (OLPX) plummeted over 15% on November 7, 2024, after the haircare products company reported disappointing third-quarter results and slashed its full-year guidance.

The company's Q3 2024 revenue declined 3.6% year-over-year to $119.1 million, missing Wall Street estimates of $126.2 million. The revenue miss was primarily attributable to weaker performance in its international business, where the company took actions to realign its distribution network. Olaplex also cited limited marketing efforts and anticipated higher promotional activity as factors hindering sales growth.

While adjusted earnings per share of $0.04 matched analysts' expectations, other profitability metrics deteriorated. Adjusted net income fell 13.8% to $28.7 million, while adjusted EBITDA declined 13.4% to $44.6 million, reflecting the impact of lower sales and continued investments in operating expenses.

In light of the weaker-than-expected performance, Olaplex lowered its full-year 2024 guidance. The company now expects revenue in the range of $405 million to $415 million, down from its previous guidance of $435 million to $463 million. Adjusted net income and adjusted EBITDA guidance were also slashed, reflecting the challenges in the company's transformation plan, particularly the realignment of its international business.