NASDAQ$OLPX

OLAPLEX HOLDINGS INC · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$98.9M

Previous: $114M-13.1%
EPS

$0.01

Previous: $0.05-80.0%
Gross Profit Margin

72.1%

Previous: 71.0%+1.5%
Adj. Gross Profit Margin

74.3%

No prior period
Adjusted EBITDA Margin

35.9%

Previous: 44.0%-18.4%
Capital Expenditures

-$451K

Previous: -$107K-321.5%
Free Cash Flow

$7.3M

Previous: $20.9M-65.0%
Net Income

$7.75M

Previous: $21M-63.1%
Operating Income

$19.6M

Previous: $35.6M-44.8%
Gross Profit

$71.3M

Previous: $80.8M-11.7%
Cash & Equivalents

$508M

Previous: $369M+37.4%
Total Assets

$1.75B

Previous: $1.73B+1.6%
Stock-Based Comp

$3.18M

Previous: $2.02M+57.7%

Revenue & EPS history

Olaplex · Revenue · Quarterly

$98.9M

Q1 2024-13.1%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Olaplex · $124M total across 3 segments · Q3 2023

  • Professional
    $48.3M-23.3%
  • Specialty Retail
    $43.2M-41.8%
  • Direct-To-Consumer
    $32.1M-18.3%

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.

Tailwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.7%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+6.8%

Avg return

30 days after

43%

10 / 23 earnings

Positive

+24.6%

Q3 2023

Best reaction

-21.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-0.2%-0.2%
Q4 2025-17.0%-27.0%+14.0%
Q3 2025+1.9%+7.5%+17.9%
Q1 2025+3.0%-3.8%-1.5%
Q4 2024+21.7%+10.9%-15.6%
Q3 2024-4.5%-5.0%+19.6%
Q2 2024-0.5%+0.0%+24.3%
Q1 2024+15.0%+8.6%+27.1%
Q4 2023-5.7%-3.1%-0.5%
Q3 2023+24.6%+26.1%+83.3%
Q2 2023-21.6%-27.2%-31.4%
Q1 2023-10.6%-11.8%-6.3%
Q4 2022-15.3%-14.0%-24.4%
Q3 2022+13.8%+26.9%+20.7%
Q2 2022-9.7%-4.8%-25.9%
Q1 2022+6.2%+16.0%+25.3%
Q1 2021+6.2%+16.0%+25.3%
Q1 2020+9.2%+2.9%+6.8%
Q4 2021+9.2%+2.9%+6.8%
Q2 2021-10.4%-5.2%-2.2%
Q3 2021-10.4%-5.2%-2.2%
Q3 2020-10.4%-5.2%-2.2%
Q4 2020-10.4%-5.2%-2.2%
Q2 2020

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