Olaplex Holdings, Inc. (OLPX) stock surged 5.67% in pre-market trading on Thursday after the company reported better-than-expected second-quarter revenue, despite missing earnings estimates. The hair care product manufacturer's strong sales performance across its Professional and Direct-To-Consumer channels offset weakness in its Specialty Retail segment.
For the second quarter of 2025, Olaplex reported net sales of $106.3 million, surpassing analyst expectations of $100.3 million. The company saw significant growth in its Professional channel, which increased 12.1% to $37.4 million, and its Direct-To-Consumer channel, which rose 12.8% to $38.5 million. However, the company posted a GAAP loss per share of $0.01, falling short of the anticipated $0.02 profit, primarily due to higher selling, general, and administrative expenses.
Despite the earnings miss, investors appear to be focusing on Olaplex's revenue growth and the company's reiterated guidance for fiscal year 2025. Olaplex maintained its full-year outlook for net sales between $410 million to $431 million, signaling confidence in its future performance. The company's ability to grow sales in a challenging economic environment, particularly in its professional and direct-to-consumer channels, seems to be driving the positive market reaction.