Olaplex’s woes continued into the first quarter.
Net sales at the beleaguered hair care company fell 13.1 percent to $98.9 million in the quarter ending March 31.
By channel, the professional channel fell 19.9 percent to $38.7 million; specialty retail slid 1.2 percent to $34.4 million, and direct-to-consumer dropped 15.7 percent to $25.7 million. In the U.S., sales rose 2.5 percent, while the international business slid 24.3 percent.
Net income plummeted 63.1 percent and adjusted net income decreased 34.4 percent. Diluted earnings per share fell to $0.01, while adjusted diluted EPS dropped to $0.03.
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Olaplex is still maintaining its guidance for fiscal 2024, anticipating between $435 million and $463 million in net sales.
“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,” said Amanda Baldwin, chief executive officer of Olaplex.
The declines at Olaplex came as prestige hair care overall is still gaining steam. In 2023, prestige hair care grew 14 percent in the U.S., as reported. Olaplex was once the category’s darling, with growing sales culminating in an initial public offering that valued the company at $16 billion in 2021. Since then, increased competition, among other factors, has whittled away at the brand’s success.
On the company’s earnings call for fiscal 2023, executives said that new product development in the back half of the year would contribute meaningfully to sales, and the brand was tightening distribution.
