Olaplex sales dipped in the third quarter, but surpassed Wall Street sales forecasts.
Net sales decreased 3.8 percent to $114.6 million compared with the same quarter a year earlier. Still, that result exceeded the $111 million in sales analysts had penciled in.
Amanda Baldwin, Olaplex’s CEO since 2023, said: “We’re making nice progress against our transformation goals and really turning to the things that were planned and putting them into action. We’ve got to keep going at that and really executing against our vision, and so I feel really proud of the team, and we’re starting to see the fruits of that labor.”
By channel, specialty retail sales decreased 13.5 percent to $36.9 million; professional increased 5.3 percent to $44.5 million, and direct-to-consumer slipped 2.9 percent to $33.3 million.
“Each one of these is a really important piece of the puzzle, and it does all start with [the professional business]. It’s such an important part of everything that we’re doing. We’re really putting our money where our mouth is, so to speak, and really investing in a pro-first and pro-early strategy that is starting to show some results,” said Baldwin.
On retail, she stressed that while they’re making improvements, there’s still a road ahead. “That’s a transformation. I think I’ve always said to everybody, it’s not going to happen overnight. It’s not linear, but we’re making some nice progress in the sell-through there. One of the things that is exciting on that front is we’ve actually been tracking the consumer response to our rebranding efforts, and I believe that’s the thing that’s really going to be super effective in driving that part of our business.”
Net sales decreased 14.6 percent in the U.S. and increased 7.1 percent internationally.
Net income was $11.1 million, as compared with $14.8 million for the third quarter of 2024. Diluted earnings per share came in at 2 cents.
The earnings come not long after Olaplex revealed the acquisition of Purvala Bioscience, a Boston-based biotech company. This marked the first acquisition from Olaplex since the brand launched over 10 years ago.
Baldwin said: “The acquisition of Purvala was about setting ourselves up for the next frontier in science. This was really about giving ourselves access to different technologies and so more to come as those start to come to market.”
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