Milk Makeup’s gross sales plunged within the third quarter, including to the woes of proprietor Waldencast, which is present process a strategic assessment of its operations.
The firm reported Monday that Milk’s web income declined 20 p.c within the third quarter to $25.2 million. While the model’s US enterprise is rising after launching at Ulta Beauty and on Amazon earlier this yr, it has seen steep declines internationally, the corporate mentioned. Waldencast has named Mazdack Rassi, Milk’s co-founder, to move the model and lead a turnaround.
Waldencast’s different model, Obagi Medical, noticed income rise 10 p.c within the third quarter, to $42.6 million. That wasn’t sufficient to offset Milk’s declines, and the corporate’s total income was down 3 p.c within the third quarter. Waldencast additionally lowered its income forecast for the complete yr, saying income would now be “broadly in line” with final yr.
The firm introduced its strategic assessment in August, and delayed reporting of second quarter outcomes, which have been additionally launched on Monday. Earlier this month, Waldencast offered Obagi’s Japan license and refinanced its credit score facility.
Learn extra:
Milk Makeup Owner Waldencast Postpones Earnings and Cuts Forecast, Will Undertake Strategic Review
The mum or dad firm of Obagi skincare and Milk Makeup delayed the complete launch of its first-half earnings on Monday, and lowered its outlook to indicate a weaker second half of the yr because it undertakes a cost-cutting assessment.