Olaplex has reported another consecutive quarter of sales declines in 2023.
Sales fell by 30% to US$123.6m in Q3, with net income and profits also sinking by 66.4% and 35.6% respectively.
The hair care brand’s Specialty Retail division saw the most significant declines during the third quarter, with sales down 41.8% to $43.2m.
Professional sales also decreased by 23.3% to $48.3m, with the business’ DTC division also shrinking by 18.2% to $32.1m.
Olaplex attributed the lowered performance to continued poor demand for its products.
Despite the sales slump, John Bilbrey, Olaplex’s interim CEO, said he is encouraged by the slight improvement on the previous quarter - which saw sales crash by 48.2% to US$109.2m.
He remains confident that income will continue to improve in the second half of year, as a result of further investments being made into the brand.
“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,” he added.
It has been a challenging year for Olaplex, which has been grappling with sinking sales and a lowered full-year forecast due to the weaker than expected performance.
The beauty executive originally joined the bond-building brand in January 2020 and helped it become a leading hair care player.
Wong said her time with the company has been “an incredible ride”.
Bilbrey will continue to serve as interim CEO until Supergoop boss Amanda Baldwin will join as Wong's replacement in 2024.
The brand has also had to manage a series of lawsuits filed against it in February 2023.
The litigation alleged that its No. 0 to No. 9 products cause hair loss and scalp blisters.
However, on 11 July, the court granted Olaplex’s motion to sever and dismissed all but the first named plaintiff.
The court also dismissed the operative complaint with leave to refile on the grounds that it contained allegations that were not relevant to the claims of the one remaining plaintiff.
On 24 July, the remaining plaintiff filed a notice voluntarily dismissing her claims without prejudice.