Olaplex hits near 4-mth low on downbeat annual sales forecast

Olaplex Holdings

28/02/2023 15:17

(Updates)
    ** Shares of haircare firm Olaplex Holdings Inc  OLPX.O  fall as much as
20.3% to hit a near 4-month low of $4.31 in early trading
        ** Stock last down ~8%, on pace to decline for third consecutive session
    ** OLPX sees 2023 sales below Wall Street estimates due to slowing demand
and inventory tightening at retailers 
    ** Forecasts full-year net sales between $563 mln and $634 mln, below
analysts' estimate of $730.7 mln - Refinitiv
    ** Expects Q1 sales to decline across all three of its channels -
professional customers, retailers and direct-to-consumer business    
    ** Co sees a 300 to 400 basis point YoY decline in 2023 gross profit margin,
due to higher warehousing and distribution costs
    ** YTD, shares up ~4% as of last close

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com))