Olaplex Holdings, Inc. reported first-quarter 2025 net sales of $97.0 million, a 1.9% decrease compared to the first quarter of 2024. Despite the slight decline, sales came in ahead of the company's expectations, reflecting continued progress on its 'Bonds and Beyond' strategy.
The company's gross margin for Q1 2025 was 69.5%, down from 72.1% in the prior year period, primarily due to product mix and higher inventory write-offs. Operating income decreased significantly to $8.5 million from $19.6 million in Q1 2024, and net income was $0.5 million, down from $7.7 million.
Selling, general, and administrative expenses increased by 18.7% to $48.0 million, driven by a $4.8 million increase in non-payroll advertising and marketing expenses and a $2.2 million increase in legal and professional fees. Olaplex reiterated its fiscal year 2025 guidance for net sales between $410 million and $431 million, adjusted gross profit margin of 70.5% to 71.5%, and adjusted EBITDA margin of 20% to 22%.
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