Olaplex’s net sales for the third quarter of 2024 dropped 3.6% to US$119.1m.
In response, the bond-building hair care brand has revised its full-year net sales guidance to between $405m and $415m, down from its earlier prediction of $435m to $463m.
The biggest hit to the Californian company during the quarter ended 30 September was from the professional channel, which decreased 12.5% to $42.2m.
Speciality retail also slid 1.3% to $42.6m, while D2C made net sales gains of 6.8% to hit $34.3m.
Geographically, small decreases in net sales were spread across the US (down 3.3%) and internationally (3.9%).
“This year has been dedicated to transformation and we continue to make strides on our plan to prioritise product innovation and the professional community,” Olaplex CEO Amanda Baldwin commented.
“While we have seen meaningful progress against our strategic goals, we have revised our outlook for fiscal year 2024 as the trajectory of our transformation has shifted, with a particular focus on the realignment of our international business.”
Baldwin, who took the top job at Olaplex this January, added: “We continue to focus on initiatives aimed at building a healthier business, including new sales and marketing investments, and now with a best-in-class executive team at the helm.
“Olaplex remains an incredibly powerful brand, and we are more confident than ever in delivering consistent and sustained growth.”
Effective in August, former Amway President Catherine Dunleavy became Olaplex’s COO and CFO.
Katie Gohman also joined Olaplex as CMO, effective 15 July, overseeing the brand’s global marketing efforts.
She most recently served as CMO for fashion company Marc Jacobs.
Olaplex has weathered a series of storms, including a sales slump in 2023, and quarterly year-on-year net sales decreases since.
It also faced a class action lawsuit alleging the company’s products cause hair loss, which Olaplex has strongly denied.
Despite the court granting Olaplex’s motion to sever and dismiss the claims, the brand has struggled to hit its target.
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