By Alan Hatfield
Hair Care specialist Olaplex Holdings, Inc. (Nasdaq: OLPX) saw substantial year-over-year revenue and profit growth amid retail and product expansion in the first quarter.
Net sales increased by 57.6% year-over-year to $186.2 million as the California-headquartered beauty company launched in Ulta retail stores and Ulta online. Expanded distribution in Sephora at Kohl’s helped drive net sales up 65.1% in the U.S., while expanded distribution in Sephora Europe and Douglas in Germany saw international sales climb 45.7%.
Net income grew by 36.1% over the prior year, and adjusted net income came in at 60.5% higher. Adjusted Diluted EPS came out to $0.13 for the period, as compared to $0.09 in the first quarter 2021, likely helping fuel a nearly 12% jump in the stock in early trading.
In a statement, JuE Wong, OLAPLEX’s President and Chief Executive Officer, commented: “The first quarter marked an excellent start to the year, consistent with our plan and continuing the positive momentum in our business. We attribute our ongoing strength to our clear competitive advantages: patent-protected products that are able to improve hair health from the first use, a proven track record of A+ new product launches, a highly engaged community of professional stylists and consumers, our synergistic omni-channel model and our asset-light, nimble operations. I would like to thank our Olaplex team and our partners in delivering an outstanding performance. As we look ahead, we believe we are well positioned to sustain our success in this dynamic operating environment.”