By Olaplex Holdings, a beauty company based in Santa Barbara, California, saw its shares surge by 23% to $1.71 following the release of its adjusted outlook for fiscal 2023 and impressive quarterly results.
Revised Sales Forecast and Improved Financial Performance
Despite experiencing a 67% decline in stock performance this year, Olaplex is optimistic about its future. The company now expects sales to range between $450 million and $460 million for fiscal 2023, compared to the previous guidance of $445 million to $465 million.
Additionally, Olaplex anticipates adjusted net income of $100 million to $108 million, along with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) between $166 million and $174 million. This is an increase from the prior estimates of adjusted net income between $96 million and $108 million, and adjusted EBITDA ranging from $161 million to $176 million.
Third Quarter Results
In the third quarter, Olaplex reported net income of $20.4 million or 3 cents per share, down from $60.8 million or 9 cents per share in the same period last year. However, adjusted earnings came in at 5 cents per share, surpassing analysts’ expectations of 3 cents per share.
While sales saw a decline of 30% from $176.5 million to $123.6 million, it still exceeded analysts’ projections of $115.6 million.
A Positive Outlook
Interim Chief Executive J.P. Bilbrey expressed optimism about Olaplex’s performance in the second half of 2023, citing the company’s increased investments and positive indicators.
“Our third-quarter results and the encouraging early indicators from our increased investments support our belief that we are making solid progress towards stabilizing our sales trend in the second half of 2023,” said Bilbrey.
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