Olaplex, once hailed as a leader in the hair care sector, finds itself grappling with a notable sales decline. The company reported a 4.8% decrease in overall sales, totaling $103.9 million for the last quarter. This downturn marks the sixth consecutive quarter of declining sales, significantly influenced by an 18.4% drop in its direct-to-consumer (DTC) business, despite a promising rise of 22.4% in specialty retail channels such as Sephora.

CEO Amanda Baldwin, who took the helm in December 2023, is optimistic about a recovery strategy. Her focus includes revitalizing the professional stylist segment, crucial for brand advocacy and consumer conversion. The competitive landscape has intensified, particularly with rivals like K18 increasing their outreach to stylists, which has diminished Olaplex’s historical professional connections.

Amidst this backdrop, Olaplex has ramped up marketing spending by 33%, totaling $16 million, with a targeted campaign around its No. 7 oil range. Strategic efforts also focus on tightening distribution agreements to eliminate unauthorized sales channels, including platforms like TikTok Shop. Notably, the brand is set to release new products catering to curly hair, with Baldwin reiterating the fundamental role of professional stylists in driving the brand’s recovery.

The stock’s initial drop of 8% following the earnings announcement did recover post-call, suggesting investor confidence may be rebuilding. Baldwin remains committed to achieving fiscal sales growth of 1% for the year, underscoring a determined approach to resurrect the brand’s illustrious status in the beauty arena.