Milk Makeup is facing significant challenges, as its recent sales in the third quarter plummeted, adding pressure on its parent company, Waldencast, which is now reevaluating its entire operational strategy.
In a report published on Monday, the company revealed that Milk’s net revenue dropped by 20 percent in the third quarter, totaling $25.2 million. Despite the brand experiencing growth in the U.S. with recent partnerships at Ulta Beauty and Amazon, it has witnessed substantial declines in international markets. In light of these struggles, Waldencast has appointed Mazdack Rassi, the co-founder of Milk, to spearhead the brand’s revitalization.
On a slightly positive note, Waldencast’s other brand, Obagi Medical, recorded a 10 percent increase in revenue, reaching $42.6 million in the same quarter. However, this growth couldn’t compensate for the downturn in Milk’s performance, leading to an overall revenue decrease of 3 percent for Waldencast in the third quarter. Alongside these challenges, Waldencast has adjusted its revenue forecast for the entire year, indicating that it is expected to be “largely in line” with last year’s total.
Waldencast initiated its strategic review back in August and postponed the release of its second-quarter results, which were also made public on Monday. Earlier this month, the company divested Obagi’s Japan license and took steps to refinance its credit facility.
