Olaplex Slumps 19.5% After Forecast Falls Short With $424.5M Guidance
Olaplex’s fourth-quarter sales rose 4.3% year-over-year to $105.1 million and its adjusted EPS met forecasts, but operating margin fell to –4.3% from +3% a year earlier. Its full-year revenue guidance midpoint of $424.5 million trailed analysts’ estimates, spurring a 19.5% share plunge.
1. Mixed Q4 performance
Olaplex reported fourth-quarter sales of $105.1 million, a 4.3% increase over last year, while adjusted earnings per share matched guidance. However, operating margin declined to –4.3%, down from +3% in the same period a year earlier, indicating weakening profitability.
2. Disappointing full-year outlook
The company set full-year revenue guidance at a midpoint of $424.5 million, below consensus estimates, reflecting cautious demand expectations for fiscal 2026. This shortfall in projected top-line growth weighs on valuation and investor confidence.
3. Market reaction and stock volatility
Shares dropped 19.5% on the guidance miss and margin contraction, marking one of the largest intraday declines for the company. Olaplex has experienced over 50 price swings greater than 5% in the past year, underscoring its high volatility profile.