Olaplex’s second quarter was met with a negative market reaction, as investors focused on the company’s declining operating margin and mixed performance across sales channels. Management acknowledged ongoing challenges, particularly in specialty retail, where sales remained under pressure despite sequential improvements in sell-through. CEO Amanda Baldwin described the quarter as a period of “continued progress in our transformation journey” but cautioned that results are not yet linear, given the wide-reaching changes underway. The direct-to-consumer business was a bright spot, benefitting from improved marketing and website upgrades.

Is now the time to buy OLPX? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Olaplex’s Q2 Earnings Call

• Susan Kay Anderson (Canaccord Genuity) asked if the expected third-quarter sales decline would be concentrated in specialty retail. CFO Catherine Dunleavy explained the shift in holiday shipments and sales cadence, noting a more even split between third and fourth quarters.
• Olivia Tong Cheang (Raymond James) inquired about early learnings from refreshed marketing and SG&A spend cadence. CEO Amanda Baldwin highlighted positive consumer and retailer response to the brand refresh and described the marketing build as “mid-stage.”
• Robert Edward Ottenstein (Evercore ISI) questioned ongoing weakness in retail, including shelf space and channel cannibalization. Baldwin emphasized improved sell-through and enhanced in-store merchandising but acknowledged persistent challenges.
• Ashley Elizabeth Helgans (Jefferies) asked about trends in the salon channel and stylist sentiment. Baldwin noted shifts in consumer hair coloring frequency and the importance of launching products like scalp and curl treatments to attract salon traffic.
• Shovana Nafiz Chowdhury (JPMorgan) probed progress on international distributor rationalization and the impact of tariffs. Management confirmed the shift from planning to execution in international restructuring and stated the company has minimal tariff exposure due to U.S.-based manufacturing.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch (1) whether new product launches and marketing campaigns sustain direct-to-consumer momentum, (2) progress in resetting international operations and partnerships for more consistent growth, and (3) improvements in specialty retail performance as inventory levels normalize and sell-through rates stabilize. The ability to execute a more disciplined promotional strategy without further margin compression will be a key marker of success.

Olaplex currently trades at $1.46, up from $1.40 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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