Milk Makeup Owner Waldencast Delays Earnings Amid Strategic Review

What's Happening?

Waldencast, the owner of Milk Makeup and Obagi, has postponed its second-quarter and half-year 2025 earnings results as it undertakes a strategic review of its business. The company is evaluating its operating performance, strategic choices, long-term priorities, and goodwill valuation. This review follows Waldencast's acquisition of Novaestiq, a private company focused on the aesthetics market. Despite the delay, Milk Makeup reported strong sales growth in the US, driven by its launch into Ulta Beauty and Amazon's Premium Beauty storefront. However, international market challenges have tempered this domestic success. Obagi Medical also saw revenue growth in the mid-teens percent, supported by US strategic distribution channels.

Why It's Important?

Waldencast's strategic review and earnings delay highlight the company's focus on maximizing shareholder value and adapting to market conditions. The review could lead to significant changes in Waldencast's business strategy, potentially affecting its product offerings, market presence, and financial performance. The strong domestic performance of Milk Makeup and Obagi Medical indicates robust demand for beauty products in the US, but international challenges underscore the complexities of global expansion. Waldencast's actions may influence investor confidence and impact the beauty industry's competitive landscape, particularly in the sustainable and inclusive beauty sectors.

What's Next?

Waldencast is working to finalize its strategic review and file its financial results within regulatory deadlines. The company has updated its full-year outlook for 2025, expecting net revenue growth in the low to mid-single digits. Adjusted EBITDA margins are anticipated in the low to mid-teens. Waldencast's strategic review may lead to new business initiatives or restructuring efforts aimed at enhancing long-term growth and profitability. Stakeholders, including investors and industry analysts, will be watching closely for any announcements regarding changes in Waldencast's strategic direction.