Yahoo Finance Olaplex stock declines as 2023 outlook misses estimates
Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss Olaplex earnings and how the stock is reacting on Tuesday morning.
Video transcript
[AUDIO LOGO]
BRAD SMITH: Also, we've got to talk about Olaplex here. Olaplex shares sliding this morning as it saw fourth-quarter net sales decline 21 and 1/2%. Net sales expected to fall below analyst estimates for fiscal year 2023.
And there you're taking a look at some of the actuals versus the estimates here for Olaplex. And it was a mixed bag at the end of the day. EPS, that was above expectations by about a $0.01. However, they did miss on the top line there. So continue to track these shares, as well. You were taking a look at this one premarket, as well, Julie.
JULIE HYMAN: Yeah, Olaplex really has some significant headwinds here, right? The thing came out, the product came out, and there was just such a fan base for Olaplex, right? It bills itself as being able to rebuild bonds in hair or build bonds in hair. And at first, everybody loved this stuff.
And now, there is sort of a rising tide of consumer complaints to some degree. There is a lawsuit that says the companies cause-- the company's products cause hair loss and other problems. Of course, it is fighting that. But you've just seen a collapse in the shares.
It came-- this was part of the class of 2021 that I like to talk about of debuts in the market. In its case, it actually had an initial public offering. It wasn't a SPAC. It wasn't a direct-listing, it was an actual IPO. And it came public at $21 a share. And the shares are now trading below $5.00, so that really tells you what you need to know about the trajectory of this company.
They're trying to rebuild things. The CEO JuE Wong saying in a statement, "Our priorities this year are to reset our base, invest in our core to provide a more powerful platform for growth." So we'll see what that growth ends up looking like this year.
BRAD SMITH: Sounds like a lot of unanswered questions right now for investors.
JULIE HYMAN: Yeah.
