Yesterday, Olaplex released its financial report of Q4 2024. It reported a 9.8 percent decline in fourth-quarter sales, dropping to $100.7 million, as a significant slump in professional salon sales offset gains in specialty retail.
And the biotech hair care brand saw its professional channel plummet 27.1 percent to $31 million, reflecting ongoing challenges in the segment.
Despite the decline, Olaplex managed to beat Wall Street expectations, buoyed by a 5.7 percent increase in its specialty retail channel, which grew to $28.8 million. Direct-to-consumer sales dipped 2.5 percent to $40.9 million, while net income saw a sharp 162.4 percent decline.
Known for its bond-building hair repair treatments, Olaplex has faced mounting competition from brands like Unilever-owned K18, as well as reputational setbacks due to a class action lawsuit alleging hair loss. Analysts remain cautious about its future trajectory, with Barclays’ Lauren Lieberman noting that while fourth-quarter results exceeded expectations, the focus is now on 2025. The company has set conservative guidance and lowered margin forecasts as it prioritizes investments in innovation and marketing to reignite growth.
