- Olaplex CEO JuE Wong is stepping down and resigning from the haircare brand's board.
- She oversaw the company during a tumultuous three years, which included a customer lawsuit.
Olaplex Holdings CEO JuE Wong is stepping down after a tumultuous three years at the helm of the haircare brand.
Wong, a beauty industry veteran, will be replaced in early 2024 by Amanda Baldwin, another longtime industry executive who was most recently the CEO of skincare and sunscreen brand Supergoop. John P. Bilbrey, the Olaplex board's executive chair, will serve as interim CEO until Baldwin's arrival.
Olaplex built a massive and devoted fanbase, largely through social media, around products it says can build chemical bonds to repair weakened hair. However, over the past few years, the brand has lost some consumer and investor confidence.
Olaplex was valued at nearly $15 million when it went public in 2021, seven years after it was founded. But soon after its IPO, the brand faced scrutiny from some equity analysts and later a lawsuit over its stock-price drop. Then, some customers shared complaints online saying the products were causing their hair to fall out.
A group of customers sued Olaplex in California, claiming its products caused "serious" problems including hair loss and scalp damage. More than 100 customers joined the lawsuit, which was ultimately dismissed.
The company fought back after the lawsuit was filed, sharing testing results that showed their products are "safe and effective." Wong defended the company on LinkedIn, writing, "Complaints like the ones you have come across sadly, a fact of life in our industry, and have been made against other high-profile brands in the category for years," she wrote.
In a note to investors regarding Baldwin's appointment, Jefferies analysts wrote, "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."
But Baldwin will have her work cut out for her. The company faces many new competitors. Some stylists and consumers have turned away from the brand. The company's share price is down 90% since its IPO.
"We fear brand damage is more severe than anticipated and believe it is possible greater brand & strategy redirection will be required," the analyst wrote.