Olaplex Reports Q3 Earnings: Sales Decline Amid Strategic Innovations and International Growth

Olaplex Reports Third-Quarter Earnings: A Mixed Bag with Signs of Recovery

In a challenging third quarter, Olaplex Holdings, the renowned haircare brand, reported a net sales decline of 3.8 percent, totaling $114.6 million. The downturn was primarily driven by a significant 13.5 percent drop in its specialty retail division and a 14.6 percent decrease in its U.S. business. This marks a notable shift after the company experienced growth in five of the last six quarters. However, the results were better than Wall Street’s expectations, which had forecasted a steeper decline of around 6 percent.

Amanda Baldwin, Olaplex’s Chief Executive Officer, attributed the narrower loss to a surge in international sales, which rose by 7.1 percent. She highlighted the success of the company’s recent product innovations, particularly the launch of its new hair masks—the Weightless Nourishing and Rich Hydration Masks, priced at $44 each. “Around this time last year, I started to speak to people about what we needed to do in order to reset that international business,” Baldwin explained. “We’re now putting markets into place, building relationships, and sending our teams to train those partners.”

Baldwin emphasized that the hair masks were easily understood and widely used by consumers, filling a gap in Olaplex’s previous offerings. The company is also ramping up its investments in the professional channel, aiming to reengage stylists and colorists with a “pro-first” mentality. “We’ve really leaned into a ‘pro-first’ mentality,” she said, noting the importance of education events for local hair professionals in untapped markets.

Despite the challenges, Olaplex reaffirmed its fiscal year guidance, which initially predicted a high single-digit decline for the third quarter but anticipates a high single-digit increase in the fourth quarter. The company has consistently exceeded its own guidance throughout the fiscal year.

“When we get the KPIs right, we’re able to move the needle,” Baldwin stated, signaling optimism for the future.

As Olaplex navigates these turbulent waters, the focus remains on rebuilding its connection with consumers and investors alike, with Baldwin at the helm, steering the brand towards a promising turnaround.

Learn More: The Architect of Olaplex’s Turnaround
Chief Executive Amanda Baldwin has been tasked with course-correcting the embattled haircare brand. Using her marketing expertise, she aims to restore the bond Olaplex once shared with beauty consumers and investors alike.