Olaplex maintains outlook despite further sales declines

Olaplex has reported a 4.8% drop in sales to £81.7 million ($103.9 million) for the second quarter ending 30 June 2024, reflecting the "continued stabilisation of the business".

The company saw net sales increase 7.3% in the US but decrease 15.1% internationally, compared to the second quarter of 2023.

For Q2, Olaplex also shared the following results:

• Specialty Retail up 22.4% to £28.6 million ($36.4 million).
• Professional down 18.4% to £26.2 million ($33.4 million).
• DTC down 11.5% to £26.8 million ($34.1 million).
• Net income down 6.1% to £4.4 million ($5.7 million).

Looking ahead, Olaplex has reiterated its sales guidance for FY24, as initially disclosed by the company on 29 February 2024.

It expects net sales between minus 5% and 1% to £342-364 million ($435-$463 million), against £360 million ($458 million) in 2023.

The guidance incorporates expectations regarding consumer demand, and investments and actions aimed at driving sell-through, improving upon foundational capabilities, and building a healthier brand.

Amanda Baldwin, Chief Executive Officer at Olaplex, said: "Our second quarter performance was in line with our expectations and demonstrated continued stabilisation in the business.

"I am encouraged by the progress we are making on our transformation as we delivered on our goals for the first half of the year and are now shifting our focus to the back half of 2024 and beyond.

"I am confident in the direction we are taking the brand and remain incredibly excited about the long-term growth potential for Olaplex."

The news comes as Olaplex strengthens its executive leadership team, appointing Catherine Dunleavy as Chief Operating Officer and Chief Financial Officer, effective 13 August 2024.

In her new role, Dunleavy will oversee the breadth of its business operations, aligning all functions to most effectively execute on the company's strategy and drive results as it targets growth.

It follows the appointment of Katie Gohman, who recently took on the role of Chief Marketing Officer, overseeing the execution of Olaplex's global marketing efforts in a bid to drive greater brand awareness, relevance, and affinity with both stylists and consumers.