Olaplex, a popular hair care brand, shares insights on the brand’s poor sales growth based on the recently released 2024 Q3 fiscal results.Olaplex
Olaplex Holdings, Inc. has announced Q3 2024 net sales of $119.1 million, a decrease of 3.6% compared to Q2 of 2024.
Sales data by channel:
- Professional decreased 12.6% to $42.2 million
- Direct-to-consumer increased 6.8% to $34.3 million
- Specialty retail decreased 1.3% to $42.6 million
Inventory at the end of the third quarter of 2024 was $85.9 million, compared to $95.9 million at December 31, 2023. Long-term debt, net of current portion and deferred debt issuance costs were $645.0 million as of September 30, 2024, compared to $649.0 million as of December 31, 2023.
Diluted EPS was $0.02 for the third quarter of 2024, compared to $0.03 for the third quarter of 2023; and adjusted diluted EPS was $0.04 for the third quarter of 2024, as compared to $0.05 for the third quarter of 2023.
Olaplex anticipates several factors impacting its performance including weaker international performance due to ongoing efforts to streamline its distribution network and reduce international marketing spend. While U.S. key account sell-through remains consistent, Olaplex reports the brand has not yet seen the anticipated boost from recent sales and marketing investments. However, the brand anticipates higher promotional spending during the holiday season compared to previous years.
Amanda Baldwin, CEO, Olaplex, says, “This year has been dedicated to transformation and we continue to make strides on our plan to prioritize product innovation and the professional community. 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. 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.”