Olaplex shares fell 25% after the hair care company cut its full-year sales guidance following weaker than expected results second quarter. Olaplex is now forecasting net sales in the range of $445 million to $465 million for fiscal-year 2023. That’s about 25% less than its previous forecast.
 
In early morning trading, Olaplex shares were priced at $2.96. That’s down from a high of $6.89 in February.
 
According to CEO JuE Wong, Olaplex’s results have been hurt by increased competition, more promotions and misinformation related to the brand. In particular, in a suit against Olaplex, several plaintiffs claimed they have sustained personal injuries to their hair and scalp including hair loss and damaged hair. Olaplex denies the charges.
 
For the second quarter ended June 30, net sales were $109.2 million, down 48.2%. Professional sales declined 61.2% to $40.9 million, direct-to-consumer sales fell 6.4% to $38.5 million, and specialty retail sales fell 53.7% to $29.8 million. By region, U.S. sales fell 58.7% and international sales fell 34%. Net income plunged more than 90% to $6.2 million.
 
The company went public through an initial public offering in 2021. According to Cosmetify, Olaplex was the most popular hair care brand in the world in 2022.