Olaplex ( NASDAQ: OLPX ) shares shot nearly 10% higher on light volume in pre-market trading on Tuesday after reporting better than expected earnings results.
The Santa Barbara-based hair care product purveyor posted narrow beats on top and bottom line expectations, led by 1 38.6% jump in net sales and a 77% rise in net income. The above-expectation bottom-line results came despite a 550 basis point drop in adjusted gross profit margin amid pervasive cost increases.
“Building on the strong momentum from the first half of the year, we are re-affirming our fiscal year 2022 guidance ranges,” CEO JuE Wong said. “We continue to see strength in prestige beauty and the prestige hair care category as we believe consumers are prioritizing their own wellbeing – even during uncertain times.”
The company anticipates net sales to reach a range of $796M to $826M against a consensus estimate of $825.74M.
The stock remains significantly shorted, with over 16% of its float held short, a factor added to by a recent short report from the Bear Cave newsletter .
Read more on the details of the earnings results .
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Olaplex edges past earnings estimates, affirms full-year outlook