OLPX - Earnings call transcript Q2 2022

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Operator

Good day, and thank you for standing by. Welcome to the Olaplex Incorporated Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation (ph), there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. to Malkin conference of like speaker to now Allison today, ICR. would hand over the your I

You may begin.

Allison Malkin

today Chief Thank you, Chief XXXX me year second Financial quarter JuE and welcome to earnings the Officer. call. Eric Officer; and Executive Olaplex fiscal are Tiziani, Wong, With

half quarter on additional For call first our XXXX quarter Then will provide second strategic regarding fiscal begin highlight our the and review of with initiatives. results today's and the progress details, outlook. second will our JuE and performance financial we made Eric,

Following the the questions for will prepared remarks, the today. call you operator open us the to take have

release by and I start, matters are we today. will including referenced to results to statement is make remind earnings uncertainties statements would could projected company's those Before business such you forward-looking, that outlook management implied from forward-looking other issued like to the in, statements in cause which subject today about that certain Olaplex Each or statements. differ actual and risks the materially of

regarding evaluating for revise be The isolation, to believes financial this or in management non-GAAP not that and as information obligation Relations considered website of with Forward-Looking useful as measures, the release, of with heading earnings company's call, certain prepared GAAP. no performance. company's discuss speak appear presentation the accordance measures any these a at available ir.olaplex.com. Exchange in these or at under Investor forward-looking Regarding be the this will only, the of financial forward-looking can in and company's Commission non-GAAP Securities call, we that this and substitute and date in The Also should it in call management Statements the results update filings on Cautionary of makes company's of statements. the on are www.sec.gov Note factor section during Additional the undertake statements the original which

a A now earnings information also the most company's reconciliation will to measures regarding ir.olaplex.com. this GAAP company's measures is of these Investor of these broadcast non-GAAP comparable find financial the and section release. JuE to the live financial at I Wong. call on non-GAAP website Relations the over turn of the directly will additional available call You in measures

JuE Wong

Thank good everyone. you, Allison, and morning,

are today share speak to We pleased to period to another outstanding you of performance.

by half that results quarter second outpace OLAPLEX. second the by first synergistic quarter strong again, our for this last Our the with U.S. highlighted of rose the geographies, XX% strength reaffirming and model. industry, a off increased half hair the sales of continued Adjusted reinforcing beauty of overall quarter the XX% growth in robust margin adjusted care category EBITDA profit the first and for XX% were across XX% prestige an and year. for second the of growth and channels, capping second sales Net omnichannel year EBITDA benefit Once from XXXX. the broad-based, was quarter products, to mutually

For net adjusted XX% half sales. fiscal the EBITDA by of grew of to first XXXX, XX%

strategy, prestige We future care compelling with long-term with and company, with our and we shape for positioned believe the we are competitive quarter and we problems strong resilient period hair from margin. net believe real very growth in use. a deep the growth profit that reporting as industry a sales record strong fix a advantages, resilient hair high track remains category. first very XXXX category to hair our define successful fourth With a of success tailwinds. the attractive well care prestige and second patent-protected designed lead, public reflects a quarter each The quarterly was execution of delivering are products market strategy as top-tier This science-based,

during even was which to consumers as in the to rising given with past OLAPLEX strength how prestige innovation own the patent-protected in efficient see with Prestige are prestige U.S. hair category and this unit well-being, positioned NPD. in beauty has industry care consumer and is and consumer downturns. from industries model the the beauty times, acted of across sales. only highly continue uncertain prioritizing consistent beauty We benefit our engaged Year-to-date tracked product XX portfolio, discretionary behavior community stylists and well consumers. remains retail productive highly by their

our also point at price which performance, with to an care, the accessible combined excellent product We within consumer. hair prestige value offers are

of XX% during evidence to up versus NPD retail category sales the the of outpace the According XX% see truck prestige XXXX U.S. to can up same QX total sales U.S. continue tracking XXXX, NPD category. Group period. to we salon, in which OLAPLEX's this QX the compared hair You data, were as excludes as care

to normal is of also which level category. see continue competitive We a a high-growth for healthy intensity,

the As most category. the of to technology from repair of the Bis-amino the awareness and the brand category as gain to truly growing inside creator stand bond the only patent-protected using out, we bond-building hair from

expect potential category purchased not be that immune survey pressure do we those strong. the OLAPLEX of premium we U.S. and Ipsos current believe related six in hair global compared the care category remains they we a is months leading would remains said OLAPLEX on health months of only in in stages anticipate market. long-term sentiment brand XX% Based consumers, for in slowdown, hair category economic less. premium an respondents developing growth hair who the to the the June OLAPLEX for role While as prestige found greater versus early have who the X% this to that last playing to of also care six months, XX and next spend last our in care spend The

long-term with about our channels, highly and existing portfolio, XX grow distribution initiatives only excited future products penetration our growth in awareness, internationally incremental expand of are ample to for increase space We consists white which launches. today,

as study QX end, of to with health year. in core hair saw all purchase conversion which QX XXXX, well trend. we of health these this our brands intent prestige for key compared initiatives, awareness strong. other brand independent best-in-class positions amongst half quarter on To believe care from According to to second survey, each The are advanced second improved of us growth us metric remains the the our

awareness and first hair points with unaided the OLAPLEX remained points increased the number top products prestige out care QX. billion We from And approximately of the sold per had #olaplex Our XX brand reaching in NPD, XX.X OLAPLEX million million billion. in on XX X.X #olaplex U.S. at seven approximately best-selling jumped QX items. TikTok of X products salon OLAPLEX surpassed the seven DTC, per hair of quarter U.S. In X in post. client, in the QX, one to hair X.X aided X performing per Amazon retail, XXXX. with three in has the care top U.S. views in In XX Instagram professional X user-generated following awareness an rose report, the items. top with overall In XXXX, performance our top QX, of

Second, to continue we innovation. introduce highly best-in-class and incremental

first the Nourishing at required oil performer continues need. in hair Our Clarifying a No. which hair damage, introduced in-class previously anti-damaged Shampoo to OLAPLEX and Hair product since hair care achieving portfolio, the current Bond-Building launch an Sephora and void our were shield No. heat retention and this second and launch status very product Bond pollution consumers Clarifying incremental Maintenance act strong removes within as introduction be X for in Ulta as number This we access June, to in serve minerals, best from one bringing chlorine, No. year. fills properties. as QX, our X from QX Shampoo, a brand water, was the built at up outside curve marks of Beauty. waves use cited Serum highly XC and In launch to our go serums launched membrane body,

Shampoo Clarifying with is across off salons, retail, in and strong online specialty start Our to Sephora. a starting

omnichannel continue success. to with we model synergistic drive Third, broad-based our

sale of size point, of community a powerful introduced Our us this on No. close as salons in the preferred use To X the XC the back consumers aim second to and at end which sizes to where opportunities and stylists are for Liter new No. the salons Shampoo, exclusively. in our X offering the consumers for and provides salons X-liter and at quarter, Shampoo industry is insights, limited for there connection salon extended part, to new No. in with Conditioner space. professional guide growth. channel, of for our capitalize professional a Clarifying salon with to we use create through we generally our

event to build awareness launch own several We of expect highly with direct-to-consumer, Sephora we more of for Douglas olaplex.com and we new launch help expansion to and the In with including awareness expansion upgraded our the our personalized the brand cross-border in Tmall of and was our OLAPLEX drive XXX technologies and hair and international recommendation, continued diagnostics on new one e-commerce shoppable pure-play overall and and from the capabilities, May in salons our penetration by offering highlight, helping China. of raise Beauty, the France. sales like business, In the abroad, trial number into a care and Kohl's the version our streaming for our in digital brand hair retail, Ulta at Germany. engagement to com in conversion of offering live videos through continue this number Tmall brand. in an U.S. dot on with to new And successful enhance XX increase

prioritize continue we investments Lastly, enable growth. our future to to

have we and will growth. to of invest advised, previously our continue have we As ahead

represents continue invest expanded the our today, York. facility start and our it year, of our We in XX% workforce base to infrastructure investing since plus the and of Pfizer campus R&D New pool, in our team growing the our employee total in where of XX% talent research on

to marketing, all and also to and she having of January We in marketing. build funnels invest team has in CMO out continue drive our our will brought on continue to marketing

result, the tracked category EMV unaided half one XX%, number first we ranking of as our XXXX awareness Tribe have Dynamics. As the for maintaining a for brand by increased our seen hair

beauty We on are brands of fastest-growing the TikTok engagement and comes when to posts. one user-generated it

prestige on be chain, of build our help library. we we advance shipping expect contract and supply the hair time the begin as Europe environmental We the believe care costs, with to manufacturer followers user-generated Instagram and to our resilience largest to XXXX, with continue that reduce our and in brand efforts will of end this products a ESG manufacturing most in impact We transportation continue one the we certain our to initiatives. supply growing continue core to and directly new further content market. By to number

company in continuous of our have suppliers to sustainability ESG remote the helping to we our with direct practices operation, evaluate drive a transparency and supply and help As improvement us us chain no engaged manufacturers, practices. contract EcoVadis

industry-leading that future performance we are OLAPLEX the of of a truly passion in with company, As the public the building to quarter, our are have mark off being Through these see our consistent across through tremendous we We year and see solutions. one we enable organization pay infrastructure potential believe we for we capabilities growth approach remain our and to beauty we and experienced a innings early our opportunities. dedication second the growth. investments, science-based pleased

We And now, to I community opportunities are team incredible and more financials our be in over review to we grateful the ahead call guidance ambassadors, continue detail. that would our about and like and the of OLAPLEX. stylists to lie turn excited to and Eric our to for

Eric Tiziani

capabilities good a category, the execution the performance everyone. QX is our of morning, our We proven Thank and care the team. you, attractiveness strong of believe strategy hair to stellar and prestige our testament JuE,

will approximately on that are and we shipments top XXXX QX our range, in again by ahead, geographies X. $XX made advance products. broad-based to In increased once tier I driven channels, which the were million look $XXX.X across in we we fiscal included increase net XX.X% note As implemented our remains sales net of that sales industry. XXXX, growth in price believe million, reaffirming guidance July QX year

business strength XX.X% geography, Excluding million with with in growth our sales based net shipments, the U.S. with and QX for our in our across also strong, were from XX.X% Germany, the $XXX.X cross-border contributions e-commerce broad France, Italy, $XX increase in sales increasing quarter. with original professional emerging a expectations grew International line the China. were By our Canada XX.X%, By led channel, channels. million. rising strong to sales

Ulta long Kohl's the with by our at aided retail QX the million, as X-liter U.S. since distribution of increased new that in launch Sephora from of for ago Europe. Specialty aided more QX happening Direct-to-consumer can consumers shipments quarter, offerings the sales call XX.X% was this as consistent the mentioned, to in in capture as sales million. of to we $XX.X continue growth JuE year to of incremental level our on launch planned and by well those particularly As due model. our our physical XX.X% rose omnichannel to $XX.X we the retail noted This strength seeing was which shopping were trend and expectations with we salons, in Sephora

cost income the XX.X% profit and gross XX.X%, basis rate margin in input statement. margin XXXX. driven The down declining Moving QX was and XXX size pipeline of for headwinds, was basis gross included points with impact Adjusted points logistics fill which by of in offering. XXX mix the contraction from decline our remainder. product the the drove accounting mix X-liter channel the That

While carries professional gross lowered the caused X-liter, sell-in the the mix higher to a X-liter our margin than by margin. overall shift overall

awareness and worldwide. preferred build of sales increase for as salons We to the expect incremental X-liter and solution that is strong part over making ROI the highly be introduction of plan community, of to our often the professional to time the penetration it the

XXXX margin half on We increased X.X% from in million expansion, million expect in and adjusted second company versus in marketing price of that including million result moderation quarter. in EBITDA adjusted EBITDA distribution long-term XX.X% of as was to million average QX fulfillment $XX.X XX.X% to a a diluted million public income approximately improve a as made XXXX $X.X from margin EBITDA increase in to from lower sales income prior reflects quarter. the from SG&A input X year and from $XX.X increase in year-over-year, net as XXXX adjusted XX.X% expense, million a $X.X EBITDA million Adjusted the quarter and resulting increase product Adjusted grew to increase $X.X paydown SG&A XX.X% XXXX. $XXX.X in sales million Adjusted $XX.X costs and increase expense volume. the interest taken in first quarter. business, share the $X.XX costs increase investments million and compared share are The Adjusted earlier the in refinance. second the related margin XX.X% increase workforce our to in a second two to to of XXXX per per XXXX million Adjusted seeing year-over-year diluted net or the support or million $X.X gross $X.X of from growth cost in $XXX.X $XX.X the QX in year. increased we $X.XX in pressures logistics our well versus from benefited July debt

sheet. million Inventory $XXX.X compared the Now $XXX.X QX XXXX. million at turning XXXX QX $XX.X was of end to the of balance million to year-end at XXXX and at the end

months comfortable and the have level compensate We supply our inventory hand our position meet We transit to help in remain higher to our strategically longer maintained to overseas and demand. with support mitigate growth inventory chain of times macro a future business, risks. ability on for

million. cash was equivalents. $XXX quarter cash flow. and $XXX generated deferred cash and strong fees, current portion operations in million ended once to Turning the net and We again of $XXX Long-term from million of debt, with

to outlook. turning our Now

adjusted guidance midpoint; are an $XXX third to sales to XX% XXXX million increase $XXX in to of guidance we growth XX% adjusted to as to of fiscal at the related would plus $XXX range following midpoint; increase year XX% inventory income launches half at anniversary tougher provide of comps the implies million provided net the XXXX the an QX of our of during $XXX in in and guidance we pipeline XXXX guidance. like comments quarter net The million, call the $XXX range earnings million, first we the two increase XX% and increase was of our contemplated to at product of $XXX in sales May. range new of was to X.X% XX% Ulta at We reaffirming midpoint. of year the implemented million plus our a from in net approximately that shipped million, for XXXX. quarter also the We plus EBITDA an reaffirmation The average start the price fiscal range

addition, was orders This our million the would $XX in advance included benefit from occurred we In a in mentioned, placed QX impact primarily of in price I channel. which typically QX. have professional approximately increase, sales of as believe

Finally, for approximately on given $XX expectation current million. of floating excellent interest expense debt, rates our rate currently we the previous represented million interest of be the another year, summary, In up performance. $XX our expect second impact from to quarter

We And OLAPLEX. confident remain operating finally, are in believe outlook strong concludes resilient and come growth we a category, proven us. track our growth our in high execution front of have record strategy, yet prepared of a in remarks. to significant for the This opportunities best is we and

for over call questions. We Operator? will operator turn back to the the now

Operator

Certainly. will of Dara Morgan [Operator Instructions] Mohsenian from Stanley. first question And our come

is open. line Your

Dara Mohsenian

Good guys. Hey. morning,

Eric Tiziani

Good morning.

Dara Mohsenian

QX? So the timing growth here question out the basis, think in towards state trends can with in basis of three have is on weaker an call. revenue the the end pricing trends sequentially underlying and give impact information general, you spending hair with on the the Thanks. the now here macro an the to of consumer in consumer general consumer of just on QX shift your perhaps so underlying just on us more pressures, on additional prestige comments care relative QX we in for And how update far to an months stripping given of your business, update that impact in specifically on revenue you more an potential so about

Eric Tiziani

we take Thanks, I And that sales quarter. wanted question questions. part the JuE, I'll then to Dara's in other first second take the saw of the trends Dara. on through you think

we increase, remark on across nothing the backing $XX throughout consistent there. saw through we so on quarter, that really million out price the the second related the quarter, sales Dara, channels to to the So referenced trends strength

JuE Wong

sentiment, in said the period. time in the us same I for category during while the Dara, QX, at mean resilience. was heard XX% on up that your you've our hair the And Right. question beauty then, prepared remarks consumer grew prestige on XX% OLAPLEX

look that seen is only have pretty impressive We they sales also beauty discretionary industry tracked home also it share at income and And we in of that now well-being held was drives to versus the own $XXX,XXX all NPD feel that really consumers XX% beauty prestige was little you And is share this held prioritize over average XXXX. the so actually happening is their than is that household retail across points XX of point beauty was in us that X on reporting feel better about the And increase an beauty will primarily and see because with like the base. can rising help that is more point shopper that, what themselves. that's about data unit XXXX report industries well. one points luxury NPD on if X earning of them really that

Dara Mohsenian

Great. Thanks.

JuE Wong

Thank you.

Operator

come Andrea JPMorgan. will question of Teixeira our And next from

Your line is open.

Andrea Teixeira

Good Thank morning. you.

So idea of the the I -- I negative was also us an related to having mix out think Retail distribution. growth of you the give impact wondering, professional Eric, that, like-for-like, quarter. if -- And as Specialty you you called this can extrapolate obviously, you new in

guess So the getting been I feedback I've side from margins buyer came in soft. is that obviously that one things of the

seasonality having you. X.X% top out a that and like in And build question the As I'll then line. follow-up you on Thank margins have parse July, the recover? we to increases expect and normalizing through, should then price with

Eric Tiziani

is gross Thanks, right. you're And around Andrea. second the first, margin. that take I'll absolutely question which of part

in be impacts seen were second margin out So here. and on as second the last than worsening gross mix what exactly inflation play you've the as quarter we in That's the would the well lower seeing about we that quarter our quarter expecting cost the we're talked call, that first. fact

that about give mitigating fact offset to us fiscal are talked also and exactly also what's we guidance, here. We actions that taking the and ability profit that's out reaffirm playing our the to year

that own year the in of And that X.X% of versus part just seeing normalization we the second in in net year, input be actions moderation inflation of margin we that on... half the we're cost increase price our also guidance first market-driven, gross EBITDA We quarter, saw is And versus improved that average July, of guidance is And with last So improved as our mix. year combination is half suppliers. it well. what lastly, of our do and all took part that fiscal of of of the the the of the second expect part the back year versus but half income reaffirmation versus consistent the to quarter. still in pressured with back the

JuE Wong

Yeah.

So…

Eric Tiziani

ahead, Yes, on go JuE, retail. specialty

JuE Wong

distribution. X,XXX full gotten just mean, we going expected, presented that I than if their retail. you in better OLAPLEX. of use on distribution into services to at your is Yeah. performing just both -- question answer we salons Ulta I saw advised regarding with the what XX% was of we've QX, salon and It doors,

you Sephora, to are category brand again, of full in are doors we as us Douglas, hair up shaping We QX, now in and doors We kind launched, number have XXX and where we which is that from prestige close at two XXX for our hair fleet leading Sephora to status. just Europe. defining in maintaining heard and in or are actually

that and or because and that how decide will beauty terms if hair to confident do partnership, the consumers this to as us to we omnichannel we we for regardless continue you we to approach move the how terms XX see just bode be growth next. our shift this are all and move one X believe in distribution our will then we channel brands, of continue of and we from to to the that partner well number do and brand on So fewer one better means want in up top care are of to continue how bigger, we to the this material

Andrea Teixeira

the on [Technical the within on of same-store basis stores, stores brand a seen Sephoras -- or any Difficulty] from like-for-like existing JuE, the sales the terms all that's of awareness helpful, same in if out into -- a this into Ultas, just more like terms And geography basis, more have is there to you and cannibalization in as you but roll how are

JuE Wong

That's a good question.

NPD we if the retail, channels So The does what does reporting look is not grew specialty salon you shared, show tell than that NPD it XX% our can at salons other the DTC. so means report is over it that just all is category ultimately, very QX distribution while XX%. and also because is prestige hair it therefore, overall and complementary. our it is that we you category growth care grew sustainable Therefore, that distribution

Andrea Teixeira

pass you it much. Thank very on. I’ll

Operator

Thank question Lauren, you. And will come next our from is And Lauren line Lieberman of your Barclays. open.

Lauren Lieberman

So growth U.S. terms obviously was But percentage very quarter business the terms in was growth the the this sequentially with in of strong first it in the quarter. year-over-year. looks of flat dollars, like

we thinking been, to And should care. So how in phasing growth of in ahead slowdown just as Are just you Sephora of really see in starting hair another as said, some bringing Sephora you wondering of the also about prestige brands has U.S.? Ulta kind be plan?

performance like U.S. and picture aggregate how to about sequentially of folks growth? and and curious think the So

Eric Tiziani

that. take I'll Lauren. Hi, Yeah.

happy we're So absolute dollars the continue and international way. a in expect pretty really second QX, our growth obviously in we constant the QX quarter. that of growing understand you're I the from were XX% U.S. with but in saying to what to the balanced U.S.

we long-term see seeing we're in what that you more strategy, is And space internationally. and So broad-based know opportunities growth our even wide growth. all

the we us. very arc, longer for over to expect So international grow nicely

U.S., it balanced. remain in the we grow to to While expect we continue

Lauren Lieberman

about and your is of move and Okay. consumers where internationally? you maybe be to the which of it's or buying patterns sort using certainly on a they're And Europe two but still one maybe using international and just conditioner like -- seeing for will curious, and example, Western pinch But but with if buying big wallets, market early, the think impact does that rollout regimen, then Europe we're elements shampoo pace any not this that term. for of longer the real the mask. Western decision a as all the dealing at was story like dramatic with you I on consumer part Are in

or your couple environment may approach be. quarters international over Just of curious may how next the the impacting least that at consumer be it rollout, to whatever

JuE Wong

mean call Yes. when one Europe is really until up we know that started do question. I chain just have and out salons in larger we credibility Sephora the that take that And into our started of what and I'll rolling that that we you rolling authority. things stores because are professional we were category. Douglas, leading in we then, hair saw out as now our establishing we

what what our to get we doing are want each what the So done have where are of partners, we is same playbook U.S., doing we with that exactly retail trade with in help that that we or would the and partners be so deeper we initiatives for products understand really to merchandising programming and what regimen to exactly can help doing consumers the them. our

into category And gets that is the If that as hair a grows. also category gets more market, time any awareness. OLAPLEX prestige you when look happening, at that happens, what

a So continue the we authority And accelerate. expanding pace that retail happens, is now have feel no very message have and distribution over, confident educate that that we but in that to our established feel we how with control continue given Pro, we with merchandise we and will that it partner with bode very those retailers. the will awareness well and when to like not

Lauren Lieberman

inflation, Eric. And sneak a more, levels I given a of think me, Okay. was level companies makes just did here in quarter from lot with if that's we just the related ton inflation of but just happy the I'm higher. inventory, given excuse with how that one We've notice you're or slows can that That sales move seen kind sorry, about if -- this I We to growth of if of inventory if curious kind the of timing should product macro? of rollout sense.

Eric Tiziani

the hand. level which made And been on We're over we the our strategy of customer the with It's a in hand absolutely. of more a of quality pretty hold hand months to of we're made have part back that what to able that exactly to inventory here. We way And several well. that inventory It maintain service, month continuing stable. excellent served Yeah, years. do we middle big on means decision of happy past very been us and do the we've to remains inventory. strategic on last year. That's decision level

Lauren Lieberman

I’ll appreciate on. it. Great. it Okay. pass Thanks. I

Operator

question And Goldman of come you. from will next Jason Sachs. English Thank our

open. is line Your

Jason English

fill, you -- I fill to boost overhang professional pipeline it fill or Was But be X-liter million quarter? pipeline that of as heard and $XX inventory it's increase in or run you a looks the also to transitory ahead on So an also loud also product. expect mentioned clear a this the the should pipeline through pro. that sales for to price not third fourth we that channel quarter? in And buy-in

Eric Tiziani

category data the own but market. our sales what's our pro momentum U.S. business, good and globally a U.S. the our some X-liter business better Hi, seeing phasing terms Jason. just we a in the those those without impacts, here to related little Yes. even strength handsomely of you little the It's a two monitor in the might on continue happening our for the with in additional versus note, in see we There for in the bit though, quarterly in pro quarter to was in outpace the category lighter expect reasons watch client then specific offering And I'll and and in professional be yes, quarter we're those third to total U.S. to professional lag, growth reasons. and of and pipeline will fourth for bit

Jason English

it salons think gaining that's do more just distribution where rate That's the because sell-through encouraging. And you're or already is or you exist? within attach you

Eric Tiziani

both. absolutely Both,

part offering year that into increase the into well, stylists usual, hands brand and of new strategy those to year also getting penetration. X-liter stylist's continuing increase we're we're continuing three purchase So have the behind per new salons. adopted to as But big rate seeing a as That's two, in well. their

So a of little bit both.

Jason English

you Did we both DTC, like going this growth something bigger She day dip ship Very sequential offsetting sequential much third or lack squeeze to there And the sequential prime also from Lauren, that a events? one be or in saw coming not else you would it what growth year event Is a I'm dip to last. June for sequential prior referenced think sequential sounds encouraging. retail. those being, like quarter? than of that despite see with in XXX a and I is quick. real growth arguably of why in we try in U.S.

Eric Tiziani

direct-to-consumer e-commerce, XX% The growth growth, with the consumer to for of in consistent on really second just and that the which was prime behavior No. our call, salons, our exciting, we pretty and in had quarter. sent this shifting grand expectation. And I'll in things. last the the while we sales remind retail was emerging signal physical you sell-in in was day really quarter that cross-border business scheme small remains the any included our

Jason English

on. lot. pass a Thanks it I’ll sense. Make Yeah.

Operator

Thank Sandler. Piper you. And Wolfmeyer come Korinne our next of question will from

Korinne Wolfmeyer

taking questions. for morning. Hi. Good Thanks the

from what on on So that kind of kind I'm would of a gather a Thanks. follow-up there it helpful. to those Nordstrom. generally, did be recently more offered? color reaction and those events, selling some any some able of Just kits the from pricing big were the whether last -- insights saw you On And of you events Amazon those go? to one. you how or curious was

JuE Wong

I'll take Korinne. that Thanks, question.

it's the did it's with our the we the Nordstrom with started have Amazon, Amazon? traditional, When want scheme it comes opportunity on equal, If we reason as more insight, we advertising that to whether have was advertising. that Prime, our what -- wanted most we very what that discuss was have makes so look increase of solid to our at participate Amazon Amazon we of there weeks whether very this of end will because past in you do to activation impact say, OLAPLEX such also impact. do tight And had Nordstrom, it retailers to retailers things in advertising. all year important purchase was because VIP do was really was, with the it but meetings process a see a initiative. Amazon we strategically. being on advertising are with at will to those that and And as to it, strategy aware, verified from And actually So why in say is the any with where which prime activation, the the we programming specifically we So consumers. consistent looked in a can they we small, reviews, we And an was insight of the during we what at do now whether we well. get Sephora, ranking to these see customers, sense, Amazon from we years that those very to not ran our serve and continue market are want

Korinne Wolfmeyer

the just consumer received? reaction been or about should seen that expand the it lot recently. offered Difficulty] more some forward? then then has increase? Helpful. kits on pricing your the of Thank seen more sort kits, you of a bit see Have impact expect strategy a to from to well be And on Can to pretty you. can just a offering this And the [Technical demand of you talk lot we've retailers amongst more any on you you going the

JuE Wong

question, Great Yeah. Korinne.

Let increase. me with the price start

confident early our pushback. and a case, not we without is entry-level price the command any at also that at transformation actually on time fact the this that And then and are research. But days, while do could the are price we team wanted prestige an analysis that market even brand sure in point, price. independent maintain do pricing we still the are which right don't the prestige We primarily that to plus we anything price conducted that its we us right research the of point. back actually increase And took seeing our because making we with run price our supports the we products an knowing higher that entry-level

who have fact, In it. were came that retailers had did we we told us they glad

your put kit then trial a So anniversary for consumers I an we it that's else, or speak anniversary-ing. and line for for whether on full whether that are on kits can't it's point. holiday to kit our question end, then everyone kits, out has purpose the we but first every that On is buy into or the

to, don't because them. to we need out customers new then because put acquire to serve put we we and we or them just kit want to purpose eventually So convert the up

Korinne Wolfmeyer

Thank you.

Operator

JuE now Wong, CEO to for I like would the back closing remarks. turn to conference

JuE Wong

It's and exciting seeing next the to you have to our of reporting Thank and you. you, all earnings Well, the you, thank with questions, participation. look quarter Thanks we fourth everyone. call. thanks at for for your forward

Operator

participating. Difficulty] for [Technical you Thank call.

may disconnect. You now

Olaplex (OLPX) 12 Aug 222022 Q2 Earnings call transcript