Olaplex slides as firm forecasts annual sales below estimates

Olaplex Holdings

28/02/2023 13:34

** Shares of haircare firm Olaplex Holdings Inc  OLPX.O  down ~15% at $4.60
premarket 
    ** Stock set to open at near 4-month low if losses hold; 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))