Milk Makeup’s sales plunged in the third quarter, adding to the woes of owner Waldencast, which is undergoing a strategic review of its operations.
The company reported Monday that Milk’s net revenue declined 20 percent in the third quarter to $25.2 million. While the brand’s US business is growing after launching at Ulta Beauty and on Amazon earlier this year, it has seen steep declines internationally, the company said. Waldencast has named Mazdack Rassi, Milk’s co-founder, to head the brand and lead a turnaround.
Waldencast’s other brand, Obagi Medical, saw revenue rise 10 percent in the third quarter, to $42.6 million. That wasn’t enough to offset Milk’s declines, and the company’s overall revenue was down 3 percent in the third quarter. Waldencast also lowered its revenue forecast for the full year, saying revenue would now be “broadly in line” with last year.
The company announced its strategic review in August, and delayed reporting of second quarter results, which were also released on Monday. Earlier this month, Waldencast sold Obagi’s Japan license and refinanced its credit facility.
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Milk Makeup Owner Waldencast Postpones Earnings and Cuts Forecast, Will Undertake Strategic Review
The parent company of Obagi skincare and Milk Makeup delayed the full release of its first-half earnings on Monday, and lowered its outlook to imply a weaker second half of the year as it undertakes a cost-cutting review.