Olaplex Stock Plummets 95%: Can New CEO Rescue Brand?

Olaplex, once a high-flying prestige hair care brand, has experienced a dramatic stock market decline. Following its Nasdaq debut in late 2021, the company's shares have lost nearly 95% of their value. This sharp fall contrasts with the S&P 500's positive performance over the same period. A significant factor contributing to this downturn was a lawsuit filed early in 2023, which accused Olaplex products of causing hair loss and damage due to an ingredient called lilial. Although the company denied these claims and removed lilial, the allegations severely impacted its reputation.

In fiscal year 2023, Olaplex reported a substantial decrease in net sales, down 47.8% in the U.S. compared to the previous year, with net income sinking by 74.8%. This period also saw increased competition from brands like K18, Ouai, and Redken, who gained popularity while Olaplex navigated social media backlash. To address these challenges, Olaplex appointed former Supergoop CEO Amanda Baldwin in late 2023.

Baldwin expressed optimism, seeing "tremendous opportunity" to deepen customer engagement, innovate, and refine the brand's strategy. The company recently launched a new pre-shampoo treatment, signaling a renewed focus on its bond-building technology. Despite a slight increase in net sales in the fourth quarter of 2025, full-year sales for 2025 only grew by 0.1%, and shares fell over 20% after the latest earnings report, indicating the ongoing challenges in its turnaround efforts.