Olaplex progresses transformation plan despite further sales declines

Olaplex has reported a decrease in net sales for the first quarter ending 31 March 2024, despite progress on its business transformation plan outlined earlier this year.

The brand saw net sales drop by 13.1% to £79.2 million ($98.9m), with a decline of 2.5% in the US and 24.3% internationally.

• Professional sales down 19.9% to £31 million ($38.7m).
• Specialty retail down 1.2% to £27.5 million ($34.4m).
• Direct-to-consumer down 15.7% to £20.5 million ($25.7m).

Net income decreased by 63.1% to £6.2 million ($7.7m), with adjusted net income down by 34.4% to £16.4 million ($20.5m).

The company reiterated its guidance for net sales, adjusted net income and adjusted EBITDA for fiscal year 2024.

It expects net sales between £348-370 million ($435-463m), with an adjusted net income of £69-80 million ($87-100m) and adjusted EBITDA of £114-127 million ($143-159m).

Amanda Baldwin, Chief Executive Officer at Olaplex, 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."

The company launched its transformation plan earlier this year, following a decline in fourth quarter and full year net sales.

It includes a greater focus on the brand's professional stylist channel as it looks to "bring Olaplex back to the forefront of product innovation and earn brand love by elevating its product development and marketing capabilities across all markets".

Olaplex also intends to focus on its existing customers and strengthen core products and current channels of distribution while "limiting new distribution this year and combating the diversion of products by closing some accounts where we find evidence that distributors were the source of diverted product".