Olaplex’s woes have continued into the third quarter.

The hair care brand, once the category’s darling, culminating in a 2021 IPO, has seen sales proceed to slip.

Net sales for the quarter ended Sept. 30 fell 30 percent year-over-year to $123.6 million. Specialty retail, previously the brand’s largest channel, saw sales fall 41.8 percent from the prior 12 months, to $43.2 million. Skilled and direct-to-consumer channels were $48.3 million and a $32.1 million within the quarter, respectively. 

Net income fell 66.5 percent to $20.4 million, and adjusted net income dipped 54.5 percent to $33.4 million, for the quarter.

The corporate has narrowed its guidance, expecting $450 million to $460 million in net sales for the complete 12 months. Olaplex had previously projected $445 million to $465 million, which was roughly $144 million below its initial targets for the 12 months.

Diluted EPS was 5 cents for the quarter. The stock closed up 25 percent at $1.73 per share.

“Our third-quarter results and the encouraging early indicators from our increased investments support our belief that we’re making solid progress toward stabilizing our sales trend within the second half of 2023. We remain excited concerning the untapped opportunities ahead of Olaplex and are implementing changes that we consider will position the brand for long-term profitable growth,” said J. P. Bilbrey, interim chief executive officer, in an announcement.

Bilbrey stepped into the highest slot after previous CEO JuE Wong departed the corporate in October. In 2024, Amanda Baldwin, most recently CEO of Supergoop, will take the highest slot.

On a call with analysts, Eric Tiziani, chief financial officer, was optimistic concerning the brand’s turnaround progress. “We communicated that stabilizing our sales trends in 2023 was a top goal. We consider we delivered solid progress against that goal. Our demand trends are stabilizing,” he said. “Our increased investment within the business is yielding positive results.”

He pointed to a doubling down on education and the brand’s skilled backing, along with a full-funnel marketing approach, as signs of life.

Ashley Helgans, a Jeffries analyst, also saw signs of life. In a note, she said the brand exceeded net sales expectations, and is optimistic about Baldwin’s appointment.

“The appointment of Amanda Baldwin as CEO must be positive for the stock, as many investors consider a management change is crucial for a brand turnaround,” the note read. “Baldwin’s background with the skincare category is attractive, as that has long been an adjoining category Olaplex has expressed interest in entering.”