Olaplex has reported a 9.8% decline in fourth-quarter sales totalling US$100.7m.
The biggest loss was in its professional salon channel, which fell by 27.1% to $31m.
However, the hair care company saw some positive momentum in its specialty retail business, which grew 5.7% to $28.8m.
The company, known for its bond-building hair treatments, has faced increased competition from brands like Unilever-owned K18 and legal challenges, including a class action lawsuit detailing hair loss.
Despite these pressures, Olaplex’s results exceeded Wall Street expectations.
Direct-to-consumer (DTC) sales also declined, dipping 2.5% to $40.9mn.
Meanwhile, net income saw a decline of 162.4%.
For the full fiscal year 2024, Olaplex’s total revenue fell 7.8% to $422.7m, with professional sales down 19.3% to $145.3m, DTC down 5.7% to $135m, and specialty retail up 5.4% to $142.3m.
CEO Amanda Baldwin remained optimistic about the brand’s transformation efforts.
She said: “During 2024, we laid a critical foundation for our business and brand transformation, and I remain confident and optimistic about the strategies put in place as we step into a meaningful year ahead.”
The hair care brand recently underwent a rebrand and announced its focus would be on scalp care.
The bond-building hair care brand said it was entering a “bold new chapter rooted in its legacy of category-creating science and inspired by professional stylists”.
The brand's new look aims to promote the brand’s core values through “vibrant new visuals” and “a dynamic digital presence”.
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