NASDAQ$OLPX

OLAPLEX HOLDINGS INC · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter performance was in line with expectations, demonstrating continued stabilization in the business.

Olaplex reported second quarter 2024 results with net sales decreasing by 4.8% to $103.9 million compared to the second quarter of 2023. Diluted EPS was $0.01, and Adjusted Diluted EPS was $0.03. The company is reiterating guidance for net sales, adjusted net income and adjusted EBITDA for fiscal year 2024.

  • Net sales decreased 4.8% to $103.9 million.
  • Specialty Retail increased 22.4% to $36.4 million.
  • Professional decreased 18.4% to $33.4 million.
  • Direct-To-Consumer decreased 11.5% to $34.1 million.

Headline financials

Total Revenue

$104M

Previous: $109M-4.8%
EPS

$0.01

Previous: $0.03-66.7%
Gross Profit Margin

69.7%

Previous: 70.9%-1.7%
Adj. Gross Profit Margin

71.9%

No prior period
Adjusted EBITDA Margin

30.8%

Previous: 33.6%-8.3%
Capital Expenditures

-$559K

Previous: -$128K-336.7%
Free Cash Flow

$5.22M

Previous: $6.03M-13.4%
Net Income

$5.78M

Previous: $6.16M-6.1%
Operating Income

$16.3M

Previous: $18.8M-13.2%
Gross Profit

$72.4M

Previous: $77.5M-6.5%
Cash & Equivalents

$508M

Previous: $378M+34.2%
Total Assets

$1.76B

Previous: $1.72B+2.0%
Stock-Based Comp

$2.86M

Previous: $2.63M+8.6%

Revenue & EPS history

Olaplex · Revenue · Quarterly

$104M

Q2 2024-4.8%vs Q2 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.

Tailwinds

  • 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.
  • Anticipated efficiencies derived from an internal cost savings program in fiscal year 2024, which is expected to more than offset modestly higher product costs.

Headwinds

  • Net sales are expected to be between $435 million and $463 million, which represents a decrease of 5% to an increase of 1% compared to fiscal year 2023.
  • Adjusted net income is expected to be between $87 million and $100 million, representing a decrease of 20% to 8% compared to fiscal year 2023.
  • Adjusted EBITDA is expected to be between $143 million and $159 million, representing a decrease of 18% to 9% compared to fiscal year 2023.
  • 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.
  • The Company expects net interest expense to be approximately $32 million to $34 million during 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 Q2 2024

Historical avgQ2 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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