Olaplex Holdings saw sales fall across the board in its first quarter, but beat Wall Street forecasts. Nevertheless, its stock closed down greater than 7 percent at $3.70.

The hair care brand specializing in bond constructing’s net sales got here in at $113.8 million in the primary quarter ended March 31, down 38.9 percent year-over-year. Analysts polled had forecast $110 million.

Inside that, the skilled channel drew in $48.4 million, down 37.2 percent; specialty retail was $34.9 million, down 45.8 percent, and direct-to-consumer was $30.5 million, down 31.9 percent. Net sales decreased 60.3 percent within the U.S., while international sales were flat.

Adjusted diluted EPS was 5 cents, as in comparison with 13 cents for the primary quarter of 2022. This got here in above Wall Street estimates for 4 cents.

In accordance with the corporate, it was negatively impacted by a number of aspects, including lower demand for core products. The primary quarter of 2023 was negatively impacted by roughly $21 million of inventory rebalancing at certain key skilled and specialty retail customers, as expected.

One other factor at play has been a lawsuit against Olaplex where several plaintiffs have claimed they’ve sustained personal injuries to their hair and scalp, including hair loss and damaged hair, something chief executive officer JuE Wong has vehemently denied on social media.

In a press release Wong described 2023 because the brand’s reset yr.

“Our first-quarter results were in step with our expectations and we made progress on the priority actions for our reset yr. We delivered high-impact innovation and made essential investments in sales, marketing and education which might be expected to strengthen our business and extend our leadership within the prestige hair care category,” she said.

“While we recognize that we’re within the early stages of this plan achieving its intended results, we remain confident that our competitive differentiators and the execution of our priorities will enable Olaplex to return to consistent and sustained sales growth at continued top-tier profitability in the longer term.”

As a part of its reset, she told analysts on a call that certainly one of its priorities is constructing out its PR capabilities. “By leveraging our social channels, we now have been proactively distributing content focused on correcting misinformation about Olaplex available in the market.”

Wong also announced two recent hires. John Keppeler has been appointed chief revenue officer, leading and overseeing the sales organization across all three channels. Keppeler previously served as the top of U.S. and global sales at several consumer product firms across multiple categories.

As well as, Nabanita Choudhury has joined as senior vp, global d-to-c. She has greater than 15 years of experience in e-commerce and digital marketing, most recently serving as the top of e-commerce at Nestlé Nespresso USA.