Olaplex’s woes have continued into the third quarter.
The hair care brand, once the category’s darling culminating in an 2021 IPO, has seen sales continue to slide.
Net sales for the quarter ended Sept. 30 fell 30 percent to $123.6 million. Specialty retail, previously the brand’s largest channel, fell 41.8 percent to $43.2 million. Professional and direct-to-consumer channels fell to a respective $48.3 million and a $32.1 million.
Net income fell to $20.4 million, and adjusted net income was $33.4 million, for the quarter. For the same time period last year, net income was $60.8 million and adjusted net income hit $73.3 million.
The company has narrowed its guidance, expecting $450 million to $460 million in net sales for the full year. Olaplex had previously projected $445 million to $465 million, which was roughly $144 million below its initial targets for the year.
“Our third quarter results and the encouraging early indicators from our increased investments support our belief that we are making solid progress towards stabilizing 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,” said J. P. Bilbrey, interim chief executive officer, in a statement.
Diluted EPS was $0.05 for the quarter.
Bilbrey stepped into the top slot after previous CEO JuE Wong departed the company in October. In 2024, Amanda Baldwin, most recently CEO of Supergoop, will take the top slot.