Olaplex Holdings, Inc. (NASDAQ:OLPX) Q4 2022 Earnings Call Transcript

Jonathan Keypour: Okay. And then if I could have one more follow-up just on the distribution runway. You mentioned international and sort of the other kind of growth you guys could go into? It seems like the — fixing up the U.S. is probably priority #1, at least in 2023. I’m just wondering if you could identify maybe some of the distribution opportunities you guys see in the states, and if you guys have taken kind of a different approach to where you are willing to play and where you’re not willing to play those kinds of decisions you’re making at this point?

JuE Wong: So very quickly, Jonathan. If you look at 2023 in the U.S., we are only 15% penetrated at professional salons. That’s a huge run rate. We are now just early innings with the key opinion leaders salons. So on the Pro side, there’s tremendous opportunity for us. Our penetration at Sephora and Ulta are still very small. In the case of Sephora, we have been steadily growing, but in Ulta, it’s just year one going into our year two, and yet we are a top ranking hair care brand. So there’s a lot of opportunities in the U.S., in North America alone. And so if we focus on what we have going deeper, we will win.

Operator: We have reached the end of…

JuE Wong: No, no. Go ahead, operator.

Operator: We have reached the end of our question-and-answer session. I would now like to turn the call back over to you for closing remarks.

JuE Wong: Yes. Thank you so much, everyone, for joining us, and hope to see you again in our next earnings call. Bye.

Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.