NASDAQ$OLPX

OLAPLEX HOLDINGS INC · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Olaplex's fourth quarter results were in line with expectations, representing a positive step towards stabilizing demand.

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.

Headline financials

Total Revenue

$112M

Previous: $131M-14.5%
EPS (adj)

$0.03

Previous: $0.07-57.1%
Gross Profit Margin

68.7%

Previous: 70.4%-2.4%
Adjusted EBITDA Margin

32.2%

Previous: 51.7%-37.7%
Capital Expenditures

$136K

Previous: $550K-75.3%
Net Income

$14.1M

Previous: $33.6M-58.1%
Operating Income

$17.2M

Previous: $47.1M-63.5%
Gross Profit

$78.8M

Previous: $92.1M-14.4%
Stock-Based Comp

$1.73M

Previous: $1.82M-4.8%

Revenue & EPS history

Olaplex · Revenue · Quarterly

$112M

Q4 2023-14.5%vs Q4 2022
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'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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2023

Historical avgQ4 2023

-0.7%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+7.1%

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%
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%
Q4 2020-10.4%-5.2%-2.2%
Q3 2020-10.4%-5.2%-2.2%
Q2 2020

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