Amanda Baldwin, CEO of Supergoop, is stepping into new shoes as the CEO of Olaplex.
Olaplex made the announcement Thursday morning before the stock market opened, stating that Baldwin would join the company in early 2024. John P. Bilbrey, executive chair of the board, will serve as interim CEO during the transition, effective Thursday. Wong will stay with the company until October 20 but has already resigned from her post as a board member. Bilbrey joined Olaplex in July and has taken on a hands-on role in decision-making, signaling some management changes were perhaps afoot, according to Korinne Wolfemeyer, senior research analyst at Piper Sandler. As part of the separation package, Wong will continue to receive her base salary for twelve months, among other benefits.
“[Baldwin] is a leader in growing prestige beauty brands and we are delighted to welcome her as CEO of Olaplex,” said Bilbrey in a press release. “She is an effective and creative brand builder who deeply understands consumer insights and analytics. Her valuable mix of strengths across marketing, product development and execution make her the ideal person to position Olaplex for long-term success.”
Along with the announcement this morning, management reiterated its fiscal year 2023 earnings guidance including a net sales range of $445 million to $465 million and adjusted EBITDA of between $161 million to $176 million. Olaplex has had several rough fiscal quarters, most recently due to public misinformation and a higher promotional environment. The company’s most recent, second-quarter earnings in August included revised earnings for the year, with a decline of $144 million in revenue. Net sales for the second quarter were $109.2 million, a decline of 48.2% year-over-year. By channel, the professional channel experienced a sales decline of 61.2% to $40.9 million, direct-to-consumer experienced a 6.4% decline to $38.5 million, and specialty retail declined 53.7% to $29.8 million. Total net sales decreased 58.7% in the U.S. and 34% internationally. The company’s stock sits around $1.75 per share at the time of this reporting, compared to when the company IPO’d in 2021 at $21 a share valuing the company at $14 billion.
The brand’s turnaround efforts are despite extended attempts to turn bad fortunes around. Olaplex launched a full-funnel campaign at the end of May to amplify its scientific qualities and generate an emotional connection with professionals and consumers. The campaign encompassed digital, social and OOH channels. In previous Glossy reporting, Olaplex expected its marketing costs, including sampling, sales and marketing payroll, to increase to $70 million in 2023, up from $40 million in 2022. In an August interview with Wong, she provided evidence that these investments helped improve Olaplex’s position in the market. According to Wolfemeyer, Olaplax’s professional channel has suffered partly due to the company’s rapid expansion into wholesale retail channels like Ulta Beauty, causing the hair-stylist community to feel ignored.
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Olaplex’s share of voice has also decreased as more new bonding brands have entered the market. Search trends have followed a similar pattern. In spring 2022, competitor brands K18 and Redken Bonding started outpacing Olaplex in search. According to Glossy’s previous reporting, K18 expects to earn $100 million in 2023 sales.
“After a potential rebase of initial guidance for 2024, we think investors will likely welcome new leadership as a fresh look into the strategy and execution,” said Andrea Teixeira, analyst at J.P. Morgan. “But we think investors are now looking beyond 2023 and into the risk of losing shelf space in key retail partners in 2024 and having to reset top-line and margin expectations.”
Baldwin is an experienced marketer, even before serving as CEO of Supergoop. She held the role of svp at L Catterton and led omnichannel marketing strategy for Dior Beauty at LVMH, in addition to holding several positions at Clinique. WWD reported that Supergoop reached $250 million in 2022 sales, a 65% year-on-year increase. And, as of 2023, it’s eyeing expansion in the U.K., Europe and the Middle East with retailers Space NK and Sephora. Wong and Baldwin were unavailable to comment for this story.
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Baldwin’s ability to grow a sunscreen-focused brand into the behemoth it is today is especially notable, given that the sunscreen category was well established by Supergoop’s launch in 2016. What’s more, several new buzzy entrants have emerged since then and existing beauty brands have expanded to sunscreen products. The ability to compete in the crowded space through differentiated products and strong brand messaging could prove invaluable assets within the bloated bond-building category.
Under Wong, Olaplex has crafted a narrative as a tech-first company due to its proprietary Bis-Aminopropyl Diglycol Dimaleate. It’s attempted to expand the ingredient into new products like lash and brow serum. Baldwin’s background is in the skin-care category, an adjacent category Olaplex has also expressed interest in entering.
Wolfemeyer said management was vague on details Thursday morning regarding plans for the company to move forward, but as she sees it, they could focus on enhanced marketing and team development.
“[Wall Street] needs to understand the brand’s strategy to better market its product and rebuild the brand. The brand is definitely struggling, and we need [to see] a plan to fix that. But that’s going to take time,” said Wolfemeyer.
