Olaplex lowers outlook as Q3 sales decline

Olaplex has reported a 3.6% drop in sales to £91.8 million ($119.1 million) for the third quarter ending 30 September 2024, but made "meaningful progress" against its strategic goals.

The company saw net sales decrease 3.3% in the US and 3.9% internationally, compared to the third quarter of 2023.

For Q3, Olaplex also shared the following results:

• Specialty Retail down 1.3% to £32.8 million  ($42.6 million).
• Professional down 12.6% to £32.5 million ($42.2 million).
• DTC down 6.8% to £26.4 million ($34.3 million).
• Net income down 27.3% to £11.4 million ($14.9 million).

Looking ahead, Olaplex has updated its guidance for FY24 and expects net sales between £312-20 million ($405-415 million), against £342-364 million ($435-$463 million) previously.

The company also anticipates a weaker performance from its international business resulting from actions taken to simplify and further realign its distribution network in an effort to strengthen its international sales operations, as well as a limited approach to international marketing that is expected to lead to softer demand.

Amanda Baldwin, CEO at Olaplex, said:  "This year has been dedicated to transformation and we continue to make strides on our plan to prioritise product innovation and the Professional community.

"While we have seen meaningful progress against our strategic goals, we have revised our outlook for fiscal year 2024 as the trajectory of our transformation has shifted, with a particular focus on the realignment of our international business.

"We continue to focus on initiatives aimed at building a healthier business, including new sales and marketing investments, and now with a best-in-class executive team at the helm. Olaplex remains an incredibly powerful brand, and we are more confident than ever in delivering consistent and sustained growth."