Shares of Olaplex Holdings, Inc. (OLPX) plummeted over 5% in the pre-market session on Tuesday, November 7, 2024, after the hair care products company reported disappointing third-quarter results and slashed its full-year guidance.
The company reported a 3.6% year-over-year decline in Q3 revenue 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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.