By Liz Moyer
Investing.com — Olaplex Holdings Inc (NASDAQ:) shares were falling on Tuesday after the company forecast a 15% drop in net revenue this year amid challenging business conditions.
Shares fell 7.7% as of early afternoon and are down 5.6% so far this year.
The maker of luxury hair care products forecast 2023 net sales of $563M to $634M, down 15% at the midpoint from 2022. Analysts were forecasting net sales of $745M.
CEO JuE Wong said the company sees the need to “reset and stabilize our core business with a long-term view. We are disappointed with this outlook.”
Olaplex said it is focused this year on increasing investments in sales and marketing, and working on communications with stylists and consumers.
The company said stylists are buying fewer products as their own clients lengthen the amount of time they wait for their next salon visit. Consumers have also been price-sensitive, it said.
Olaplex intends to raise its marketing budget to $17M from $14M last year. It also hopes to ramp up a sales team education program through Ulta and Sephora, targeting 400 stores nationwide after a successful pilot.
