Olaplex sales hit by lower demand
Olaplex has reported a 30% decrease in net sales to £100.5 million ($123.6 million) for the third quarter ending 30 September 2023, attributed to continued lower level of demand for its products.
For Q2, Olaplex shared the following channel results:
- Professional down 23.3% to £39 million ($48.3 million).
- Specialty Retail down 41.8% to £35 million ($43.2 million).
- Direct-to-Consumer down 18.2% to £26 million ($32.1 million).
Net sales also decreased 30.9% in the US and 29% internationally.
Net income dropped 66.5% to £16.5 million ($20.3 million), compared to £49.3 million ($60.7 million) in the third quarter of 2022.
Looking ahead, the company has updated its guidance and now expects net sales in the range of £366-374 million ($450-460 million) against £349-364 million ($445-465 million) previously.
John Bilbrey, Executive Chair and Interim CEO at Olaplex, said: "Our third quarter results and the encouraging early indicators from our increased investments support our belief that we are making solid progress towards stabilising our sales trend in the second half of 2023.
"We remain excited about the untapped opportunities ahead of Olaplex and are implementing changes that we believe will position the brand for long-term profitable growth."
The trading update comes after Olaplex named Amanda Baldwin as its new CEO, replacing JuE Wong, who stepped down after more than three years in the role.
Baldwin joins Olaplex from Supergoop, where she served as CEO since July 2016. She also previously led the omnichannel marketing strategy of Dior Beauty at LVMH and held several positions at Clinique, a part of The Estée Lauder Companies.
