CEO JuE Wong Exits Olaplex
Updated at 4:25 p.m. on Oct. 12
JuE Wong is out as chief executive officer of Olaplex, the beleaguered hair care company said Thursday.
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The seasoned beauty executive will be succeeded by Amanda Baldwin, most recently CEO of Supergoop, in January. In the interim, John Bilbrey, the company’s executive chair of the board, will serve as CEO.
“Amanda is a leader in growing prestige beauty brands and we are delighted to welcome her as CEO of Olaplex,” Bilbrey said. “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.”
Prior to joining Supergoop, Baldwin served as a senior vice president at investment fund L Catterton, with a focus on the beauty sector. She previously led the omnichannel marketing strategy of Dior Beauty and held several positions at Clinique.
Baldwin said she sees “tremendous opportunity” to help Olaplex reach its full potential by further deepening engagement with stylists, retailers and consumers through breakthrough product innovation, sharp storytelling and a dynamic global omnichannel strategy.
“It is a privilege to join the company at this pivotal time in its evolution,” she said.
After building a cult following for its bond building products, Olaplex has hit a rough patch amid increased competition and a lawsuit in which several plaintiffs claimed they have sustained personal injuries to their hair and scalp, including hair loss and damaged hair, something the company has vehemently denied.
The company has upped its marketing spend to combat both these issues, but that has failed to achieve the desired effect. Pro stylist demand continues to falter following negative press reports, despite the dismissal of the lawsuit, and competitors K18 and Redken Bonding have taken larger chunk of attention and internet searches than before.
As a result of these factors, Olaplex, which went public through an initial public offering in 2021, is forecasting net sales in the range of $445 million to $465 million for fiscal year 2023. This is approximately $144 million lower than its previous forecast.
For the second quarter ended June 30, net sales were $109.2 million, down 48.2 percent from a year earlier. Analysts polled by Factset had forecasted $130 million. Direct-to-consumer sales came in at $38.5 million, down 6.4 percent, and specialty retail sales were $29.8 million, 53.7 percent lower than in the prior-year period.
“It has been an honor to lead Olaplex through so many significant moments over the past three-plus years,” said Wong, who joined Olaplex in 2020 from Moroccanoil, an argan oil-based hair and body brand, where she was CEO. Before that she held roles as president of Elizabeth Arden, CEO of StriVectin and CEO of Astral Health. “My time with the company has been an incredible ride, and I appreciate the opportunity to help serve our team, partners, creators and professional stylists — all of whom have played a special role in our success. I can’t wait to see all that Olaplex accomplishes in the years to come and will remain a loyal and committed champion of the brand.”
The markets were relatively unfazed by the news, with stock closing up 0.6 percent to $1.77. Nevertheless, it is down around 90 percent since its stock market debut two years ago, when it hit $24 per share, valuing the company at north of $15 billion.
Ashley Helgans, an equities analyst at Jefferies, said the appointment of Baldwin as CEO should be positive for the stock.
“Many investors believe a management change is necessary for a brand turnaround,” she explained. “Baldwin’s background with the skin care category is attractive, as that has long been an adjacent category Olaplex has expressed interest in entering. We believe her broad experience across a number of roles in the beauty industry, especially marketing, will be positive for the company as it works to reposition itself and repairs brand perception.”
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