ProCollective previously reported on Olaplex’s declining sales across all channels for quarter four of 2023. This downturn appears to be continuing based on the latest results from Olaplex Holdings, Inc.

During the earnings call on May 2nd, the company disclosed a 13.1 percent decrease in net sales for the first quarter of 2024, totalling $98.9 million. The professional channel, which is the brand’s primary market, experienced a decline of 19.9 percent during Q1, while the specialty retail sector dropped by 1.2 percent and direct-to-consumer sales fell by 15.7 percent.

In the United States, net sales saw a 2.5 percent increase, whereas international sales plummeted by 24.3 percent. CEO Amanda Baldwin attributed the decline to the company’s efforts to reduce distributors who were diverting products. She mentioned that Olaplex is taking steps to constrain new distribution, acknowledging a short-term negative impact with the hope of driving a positive outcome in the long run.

Despite the sales decline, Baldwin remains optimistic about the company’s future prospects, stating that the company is on track to achieve its goals for 2024 of $435 to $463 million. Following the earnings call, there was a slight increase in shares to $1.66, although they are still significantly below their post-IPO highs.

Images: Olaplex