Olaplex Holdings (NASDAQ:OLPX) shares are down in double digits at the time of writing after the hair care products provider posted lower than anticipated second-quarter numbers, with revenue plummeting 48.2% year-over-year to $109.2 million. The figure lagged behind estimates by nearly $20.6 million.
Further, EPS at $0.03 too missed expectations by $0.02. The quarter was characterized by lower demand in the company’s Professional and Specialty Retail channels, with net sales falling by 61.2% and 53.7%, respectively. Additionally, net sales in the Direct-To-Consumer channel too declined by 6.4%.
Olaplex had a cash pile of $378.4 million at the end of June and for the full year 2023, it now expects net sales to hover between $445 million and $465 million. This is a significant scaleback from an earlier outlook between $563 million and $634 million.
In sync, it has also lowered its adjusted net income outlook to a range of $96 million and $108 million versus prior expectations between $176 million and $224 million.
Overall, the Street has a $5.75 consensus price target on Olaplex alongside a Hold consensus rating. This points to a mouth-watering 92.9% potential upside in the stock.
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