2024-04-27 08:37:25 ET
Summary
- Olaplex's sales continue to decline, and its costs are rising, leading to a significant decline in profitability.
- While there have been macro headwinds, Olaplex's current issues appear to be the result of increased competition.
- Olaplex's sales are expected to decline further in 2024, even as the company increases its investments in areas like sales and marketing, a necessary response to competition.
- Olaplex's stock appears attractively priced but this may be a mirage due to the company's deteriorating fundamentals.
Olaplex's ( OLPX ) business continues to struggle, with weak sales and rising costs dramatically undermining the company's profits over the past few years. While the stock now appears attractively priced, particularly if the company can return to growth and maintain/improve its profit margins, it seems likely that the company's performance will continue to deteriorate....
Read the full article on Seeking Alpha
For further details see:
Olaplex: One Trick Pony