Shares of Olaplex (NASDAQ:OLPX) plunged today after the company’s guidance for Fiscal Year 2023 missed expectations. Looking forward, management expects revenue and adjusted net income to be in the ranges of $563 million to $634 million and $176 million to $224 million, respectively. For reference, estimates called for revenue of $736.1 million and an adjusted net income of $273.3 million.
This can be attributed to inventory rebalancing at certain professional and specialty retail customers, which is going to cause Q1 2023 sales to fall 41% year-over-year. Nevertheless, trends are expected to reverse in the third and fourth quarters.
The last five trading days have not been kind to shareholders. OLPX stock was hovering around the mid-$5 range until today, when it collapsed. As a result, the stock is down over 17% over this timeframe.
