Olaplex has announced its first quarter 2023 results, which showed net sales were $113.8 million, down 38.9% as compared to the previous year.
Net income decreased 66.2% and adjusted net income decreased 65.7%.
Gross profit was $80.81 million, down 42.8% as compared to the previous year.
Olaplex cited three factors impacting Q1:
- A lower baseline level of demand for core products in the first quarter of 2023.
- A negative year-over-year impact from inventory rebalancing at certain professional and specialty retail customers, which lowered net sales for the first quarter of 2023 by approximately $21 million.
- The first quarter of 2022 included approximately $10 million in net sales attributable to inventory pipeline sold to a key specialty retailer, and similar inventory pipeline sales did not occur in the first quarter of 2023.
Olaplex is projecting net sales for fiscal year 2023 to be between $563-634 million. In fiscal year 2022, net sales were $704 million
JuE Wong, Olaplex president and CEO, said, "Our first quarter results were in line with our expectations and we made progress on the priority actions for our reset year. We delivered high impact innovation and made important investments in sales, marketing and education that are expected to strengthen our business and extend our leadership in the prestige hair care category. While we recognize that we are in the early stages of this plan achieving its intended results, we remain confident that our competitive differentiators and the execution of our priorities will enable Olaplex to return to consistent and sustained sales growth at continued top-tier profitability in the future."