Olaplex Holdings appoints new director and accounting officer

Olaplex Holdings , Inc. (NASDAQ:OLPX), a company specializing in beauty and personal care products with impressive gross profit margins of 71.36%, announced significant changes to its leadership team, as per a recent filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the company currently appears undervalued based on Fair Value calculations, despite maintaining strong financial metrics with a current ratio of 10.67. On Monday, the Board of Directors elected Pamela Edwards as a Class II director, with her term set to expire at the 2026 Annual Meeting of Stockholders. Edwards, with her extensive background in finance and retail, also joins the Audit Committee effective Tuesday. This appointment comes at a crucial time, as InvestingPro analysis reveals the company’s net income is expected to grow this year, with 13 additional exclusive ProTips available for subscribers.

Edwards, 62, brings a wealth of experience from her previous roles, including serving as the CFO and Executive Vice President of Citi Trends, Inc., and holding various executive positions at L Brands Inc (NYSE:BBWI). Her board memberships at The Azek Company Inc., and past roles at Hibbett, Inc., and NMG Holding Company, Inc., add to her notable credentials. Edwards’ academic achievements include an M.B.A. from Duke University’s Fuqua School of Business and a B.S. in Finance from Florida A&M University.

Under the company’s compensation policy, Edwards will receive an annual cash retainer of $100,000 for her board service and an additional $15,000 for her role on the Audit Committee. She will also be granted restricted stock units valued at approximately $150,000 annually, vesting on the anniversary of the grant date, contingent on continued service.

Furthermore, Stephen J. Bacica has been appointed as Chief Accounting Officer, succeeding Kenneth F. Egan, who served as the Interim Chief Accounting Officer. Bacica, 54, possesses over three decades of experience, having worked in various sectors including consumer, hospitality, and retail. His recent tenure includes Deputy Controller at Mars, Inc., and VP and Controller at Intelsat. He joins as the company operates with a moderate level of debt, maintaining a debt-to-equity ratio of 0.74, according to recent financial data.

Bacica’s compensation includes an annual base salary of $350,000, a potential annual bonus of up to 35% based on company and individual performance, and a new hire equity grant of restricted stock units valued at approximately $300,000. These units will vest over four years.

Both Edwards and Bacica will enter into indemnification agreements with Olaplex Holdings, ensuring alignment with the company’s governance practices. This strategic move is expected to strengthen Olaplex’s leadership and financial management as the company continues to grow in the competitive beauty industry, with current annual revenue of $422.67 million. For deeper insights into Olaplex’s financial health and growth prospects, investors can access comprehensive analysis and over 30 key financial metrics through InvestingPro’s detailed research reports, available for over 1,400 US stocks. The information in this article is based on a press release statement and InvestingPro data.

In other recent news, Olaplex Holdings Inc. reported its fourth-quarter earnings for 2024, revealing revenue of $100.7 million, which exceeded the anticipated $87.51 million. The company maintained its earnings per share (EPS) forecast, aligning with market expectations at $0.01. Despite a year-over-year decline in net sales, Olaplex demonstrated resilience by surpassing revenue expectations for the quarter. Analysts from Jefferies and Piper Sandler have both revised their price targets for Olaplex, with Jefferies lowering it to $1.40 and Piper Sandler adjusting it to $1.50, while maintaining Hold and Neutral ratings, respectively. Jefferies noted the company’s strategic initiatives, while Piper Sandler acknowledged Olaplex’s investments in team expansion and marketing. The company’s future outlook for fiscal year 2025 includes a mixed performance, with sales forecasts exceeding projections but gross margin and EBITDA margin percentages falling short. Olaplex’s management remains focused on innovation and brand strength, with plans to launch new products annually and strengthen its presence in the U.S. market.

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