Yesterday, Olaplex released its financial report. Its performance in the second quarter showed a mixed picture, with overall sales declining but certain segments performing well. The hair care brand reported a 4.8 percent decrease in net sales, totaling $103.9 million for the three months ending June 30, compared to the same period last year. This figure was slightly above Wall Street’s expectations of $103.7 million.
Breaking down the sales, specialty retail was a notable bright spot, increasing by 22.4 percent to $36.4 million. However, professional sales saw a significant drop of 18.4 percent to $33.4 million, and direct-to-consumer sales decreased by 11.5 percent to $34.1 million. Geographically, net sales in the U.S. grew by 7.3 percent, driven primarily by a recovery from last year’s customer inventory rebalancing, whereas international sales declined by 15.1 percent.
Despite the sales decline, Olaplex’s adjusted diluted earnings per share remained stable at 3 cents, matching the previous year’s performance.
Amanda Baldwin, Olaplex’s CEO, emphasized the brand’s long-term strategy and the challenges involved in building a global and enduring brand. “We are on a journey to build a world-class brand and a business that is well-positioned for long-term success,” she said. Baldwin highlighted the importance of new product launches and key holiday periods for the latter half of 2024, along with continued planning for 2025 and beyond.
A significant part of Olaplex’s transformation efforts includes the launch of Bond Shaping Technology, targeting curly, wavy, and coily hair textures. This innovation marks Baldwin’s first major product launch since joining the company at the end of 2023. She reiterated the brand’s commitment to professional channels, stating, “Our history, and our future, are all about being pro-first. That’s the philosophy. The pros are our most powerful muse.”
In addition to product innovation, Baldwin is also restructuring the C-suite. Catherine Dunleavy will join Olaplex as chief operating officer and chief financial officer on August 13, bringing experience from Away, Nike, Comcast, NBCUniversal, and GE. Katie Gohman will assume the role of chief marketing officer, having previously held marketing leadership positions at L’Oréal, Ralph Lauren, Coach, and Marc Jacobs.
