Olaplex released financial results for the first quarter ended March 31, 2024. Net sales at the struggling hair care company declined by 13.1% to $98.9 million in the quarter ending March 31. Net sales in the United States rose by 2.5%, while international net sales experienced a decline of 24.3%.
Broken down by channel, sales in the professional segment dropped by 19.9% to $38.7 million; specialty retail experienced a slight decrease of 1.2% to $34.4 million, and direct-to-consumer sales fell by 15.7% to $25.7 million. In the U.S., sales increased by 2.5%, but the international segment saw a significant decline of 24.3%.
Net income saw a steep decline of 63.1%, while adjusted net income fell by 34.4%. Diluted earnings per share dropped to $0.01, and adjusted diluted EPS decreased to $0.03.
Olaplex continues to uphold its forecast for fiscal 2024, expecting net sales to range between $435 million and $463 million. The company expects net income in 2024 between $87 million to $100 million.
During the earnings call for fiscal 2023, Olaplex’s executives mentioned that the introduction of new products in the latter part of the year would significantly boost sales, and the brand was refining its distribution strategy.
Amanda Baldwin, OLAPLEX’s Chief Executive Officer, said: “Our first quarter results represent progress on the business transformation plan that we outlined earlier this year. I am encouraged with our performance to date and believe we are well-positioned to achieve our goals for 2024.”
