Why Olaplex (OLPX) Shares Are Diving Today - Olaplex Hldgs (NASDAQ:OLPX)

Olaplex Holdings Inc OLPX issued third-quarter preliminary sales expectations and revised FY22 guidance.
The company attributed the updated guidance to a slowdown in sales momentum reflecting macroeconomic pressures, increased competitive activity, including discounting, a moderation in new customer acquisition, and inventory rebalancing.
Olaplex expects Q3 sales of $176.5 million, a 9.2% Y/Y increase, against the consensus of $208.95 million.
It expects adjusted net income of $71.3 million - $73.3 million and adjusted EBITDA of $100.0 million - $102.0 million, both declining Y/Y.
It sees Q3 gross margin of 72.5% - 73.7% and inventory to be $150.0 million - $152.0 million.
For FY22, Olaplex expects sales of $704 million - $711 million (previous guidance was $796 million - $826 million) versus the estimate of $815.74 million.
It sees adjusted net income of $303 million - $307 million (previously $363 million - $379 million) and adjusted EBITDA of $425 million - $431 million (previously $504 million - $526 million).
Price Action: OLPX shares are trading lower by 45.76% at $5.31 in premarket on the last check Wednesday.
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Olaplex Shares Plunge On FY22 Guidance Cut