- Olaplex Holdings ( NASDAQ: OLPX ) fell ~32% after the company lowered its FY22 guidance to reflect a slowdown in sales momentum on account of macro-economic pressures, increased competitive activity and a moderation in new customer acquisition.
- For FY22, the company now expects net sales in the range of $704M-$711M (vs. consensus of $816.51M), adjusted net income of $303M-$307M and adjusted EBITDA of $425M-$431M.
- Additionally, the company also provided preliminary Q3 unaudited net sales estimates and and an expected range for net income, adjusted net income and adjusted EBITDA.
- Q3 net sales are expected to be ~$176.5M, representing an increase of 9.2% Y/Y. Consensus revenue estimate is 207.64M.
- Net income is expected to be in the range of $59M to $61M, compared to $56.6M a year ago.
- Adjusted net income is expected to be in the range of $71.3M to $73.3M, compared to $74.4M a year ago.
- Adjusted EBITDA is estimated to be in the range of $100M to $102M, as compared to adjusted EBITDA of $106.8M in the year-ago quarter.
- Gross margin should be in the range of 72.5% to 73.7%, and adjusted gross margin in the range of 74.1% to 75.2%.
- The Q3 results are set to be released Nov. 9.
- For Q4, the company expects net sales to be down by 20% on a yearly basis.
- Source: Press Release
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Olaplex Holdings falls significantly after lowering FY22 guidance