Olaplex earnings fall short, shares plunge as brand faces lawsuit

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Olaplex sales plunge as the trendy hair care brand faces growing competition and a lawsuit

showing that its products are safe to use."To anyone experiencing hair loss and hair breakage, we understand the emotional toll it has," Wong said during the company's earnings call.Consumers are visiting the salon less frequently, hurting Olaplex's sales

Meanwhile, the company is facing another challenge: Salons and retailers are ordering fewer products from Olaplex as customer spending habits change. Consumers are spending less on hair care at salons, for example, Wong said during the company's earnings call."We are seeing U.S. professional stylists buying less and buying closer to need as they report clients lengthening the time between salon visits," Wong said.

"Consumers have been price sensitive," Wong said later, adding that"certain Pro and Specialty Retail customers have lowered inventory levels to adjust to those trends while global supply chain constraints have eased."The theory is that customers will buy Olaplex's other products if they try the flagship product, which contains its patented bond-building technology, Wong said.

 

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