There’s been a big leadership change at Hydrafacial owner BeautyHealth.
Andrew Stanleick will depart the company as president and chief executive officer and relinquish his board seat, effective Sunday. Marla Beck, a company board director and Bluemercury founder, will step in as interim CEO while the company completes a formal search for a permanent successor. She founded the beauty retailer in 1999, selling it to Macy’s in 2015.
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“It has been an honor to lead BeautyHealth, and I would like to thank Brent [Saunders] and the board for the opportunity,” said Stanleick, who will serve in an advisory role with the company through the end of the year. “I leave inspired by the passion of our teams, providers and consumers and the brand-forward vision that Hydrafacial has set out. I believe deeply in the future opportunity of the professional beauty and aesthetics sector — and I remain an ardent supporter of BeautyHealth.”
Stanleick joined BeautyHealth in January 2022. Prior to that, he served as executive vice president, Americas, of Coty Inc. and global CEO of Coty’s joint venture with Kylie Jenner’s Kylie Cosmetics and Kim Kardashian West’s KKW Beauty brand.
During his tenure at BeautyHealth, he forged partnerships with the likes of Dior, Dr. Dennis Gross and Jennifer Lopez, increased Hydrafacial’s presence across the globe and oversaw the company reaching profitability.
But in its third-quarter results, released Monday, BeautyHealth said while net revenue was up 10 percent year-over-year, on the strength of performance in Asia-Pacific, the quarter was overshadowed by lower-than-expected U.S. revenue and $63.1 million in restructuring charges related to device upgrades of early generation Syndeo Hydrafacial devices.
As a result, the company is revising its fiscal year 2023 net sales guidance to a range of $385 million to $400 million, its fiscal-year-adjusted earnings before interest, taxes, depreciation and amortization margin guidance to a range of 5 to 6 percent and is suspending its long-term 2025 financial outlook.
“We are focused on protecting Hydrafacial’s strong brand equity as we address the Syndeo provider experience challenges,” said BeautyHealth chief financial officer Michael Monahan. “We are confident that, with our strategy, we will return Hydrafacial to the reliable standard that our customers have come to expect from us and keep their trust — and, with this, reaccelerate Syndeo adoption in the U.S.”
The company plans to only market and sell Syndeo 3.0 devices due to provider experience issues with earlier generation Syndeo devices. It has designated all Syndeo 1.0 and 2.0 devices on-hand as obsolete, resulting in an inventory write-down in cost of sales of $18.8 million during the three months ended Sept. 30.
The company incurred costs of $12.3 million associated with the Syndeo Program and has accrued an additional $32.1 million for the estimated cost to remediate or upgrade or exchange the remaining Syndeo 1.0 and 2.0 devices.
BeautyHealth’s share price closed up 8.3 percent to $3.90. In after-hours trading when the leadership changes and quarterly results were released, the share price fell about 38 percent.
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