NEW YORK & GENEVA--(BUSINESS WIRE)--Wella Company, an innovative global leader in the $100 billion hair and nail segment of the beauty industry, today marked its third year as an independent company, demonstrating broad-based growth balanced across brands, categories and geographies. Wella Company achieved high single-digit growth in constant currency in Fiscal Year 2023 (FY23), which closed at the end of June, cementing its foothold as one of the fastest-growing companies in the sector. Wella Company’s portfolio of iconic professional and retail hair, nail, and beauty tech brands includes Wella Professionals, O·P·I, ghd, Briogeo, Nioxin, Sebastian Professional, and Clairol.
Since its inception in 2020, Wella Company has reported year-over-year growth in both developed and emerging markets. Continuing on the success of its leading professional hair color brand, Koleston Perfect (KP), which sold 1.5 tubes per second globally in FY23, the company has established its professional color credential as the No. 1 Salon Color Brand in the World, and continues to invest behind elevating its core through expansion into hair care, as well as across the nail and beauty tech portfolio. The company has also grown its eCommerce sales at a rate of more than 2x market growth by increasing partnerships with top eComm retailers, investing in digital-first brand building, and consistently improving user experience on its owned eComm platform WellaStore to meet the needs of salon professionals.
"Looking at 2023, we are beginning to realize the benefits of the successful brand transformations across our portfolio and breakthrough innovations. We are also seeing our business mature and expand across channels and markets. All of our brands and geographies are growing ahead of the category, which is an indicator that we have tremendous upside yet to unlock,” said Annie Young-Scrivner, Chief Executive Officer of Wella Company. She added, “In Fiscal Year 23, we grew our top line and profitability and expanded our market share, and we expect Fiscal Year 2024 will continue that growth trajectory.”
Breakthrough Innovations and Modernized Brand Experiences Capture Top Share Wins
With Wella Professionals established as the No. 1 Salon Color Brand in the Worldi, O·P·I also claims its position as the No. 1 Professional Nail Salon Brand Worldwide. In addition, Wella Company’s portfolio of brands is #1 in Professional Hair Care in Brazil, one of the company’s highest growth markets. The company’s innovations touted patented technology in several areas, while continuing to elevate the look and experience of its brand portfolio.
- Addressing consumers’ top concern about hair damage, Wella Company launched revolutionary hair product innovations combining both speed and performance results. Wella Professionals Ultimate Repair line with its Miracle Hair Rescue, is a patented, leave-on hair repair treatment with the ability to reverse hair damage both inside and out in 90 seconds. Ultimate Repair is Wella Professionals’ entry into the prestige haircare segment and has been one of the company’s most successful launches in Care to date. After just a few months in market, Ultimate Repair is quickly gaining share in both salons and in prestige retail. To complement through in-salon demand services, Shinefinity, the professional glazing product and new category entry last year, continues to drive incremental growth. The brand now has more than 40 shades in more than 30 markets around the world as a result of its wide popularity.
- Wella Professionals refreshed its packaging across its haircare line, including shampoos and conditioners, contributing to driving double-digit revenue growth globally.
- ghd, a leading global beauty tech brand and the UK’s No. 1 recommended styling brand by professionals, created a new category in wet-to-dry with the introduction of ghd Duet Style. Duet Style is the first ever, 2-in-1 wet-to-dry styler that dries and styles at the same time with no heat damage and 45% less energy consumption. Since its launch in February, ghd Duet Style is the brand’s #3 bestselling product behind Platinum+ and Gold stylers.
- Addressing the growing trend in scalp care, Wella Company introduced two top-performing entrants into the space. Nioxin Ultimate Power Serum is a highly effective leave-on scalp treatment designed to strengthen hair from the root and increase hair anchorage. Nioxin Ultimate Power Serum launched in May in one online retailer, recording double-digit growth in North America. Ultimate Power Serum is attracting new users, with 93% of buyers being first-time users of the Nioxin brand. Product ratings are driving preference, with 91% of reviewers on one site sharing they would recommend it to a friend, and more than half of reviewers on another site giving 5-star ratings.
- Briogeo, the award-winning, all natural, inclusive hair care line, entered the scalp care category in January with the launch of Destined for Density, a holistic scalp + hair care system to boost hair’s density for thicker, fuller, healthier looking hair. To date, the collection—which includes Density Serum, Shampoo, Conditioner and Supplements —has been the brand’s highest and best performing launch. The hero SKU, Density Serum, became the brand’s #1 SKU at a top prestige beauty retailer in North America during launch.
- Clairol also revamped the legendary at-home hair color brand showcased in the It’s So Me campaign, part of a multi-year effort to introduce Clairol to a new generation of DIY color users. It’s So Me highlights the full Clairol portfolio, including heritage brands like Nice ’n Easy permanent hair color, and new innovations for 2023: Natural Instincts Bold, Blonde It Up Crystal Glow Toners, and Root Touch Up Spray 2-in-1. These initiatives have helped the Retail Hair business in the US achieve record share levels of 13.5% in the past 6 months ending September 2023ii and 10+ months of consecutive share growth.iii
- O·P·I introduced several standout innovations this year that have driven O·P·I’s record market share +4 share points vs YAiv in U.S Premium Retail and +2 share points vs YA in the U.S Food, Drug, Mass channel in the Nail Color and Treatments category.v Globally, the brand is also gaining share across both Retail and Pro channels.vi O·P·I Repair Mode, a patented bond building treatment to repair nail damage from the inside in 6 days, is an important entry into the premium price segment and has overdelivered its year one sales forecast. Another key launch in the U.S. was O·P·I xPRESS/ON Press-On Nails, which successfully entered the highest growth segment in nails, artificial nails. The O·P·I x Barbie The Movie collection this spring was the largest nail partnership to date in 2023 in U.S FDM.vii And the brand’s first natural nail lacquer O·P·I Nature Strong continues to gain share in U.S Food, Drug, Mass channel, reaching 35% of the total Naturals category,viii and CY 23 sales-to-date in U.S Premium Retail are over 2X higher than the leading natural mass market nail brand.ix
Inaugural Wella Company Environmental and Social Impact Report Issues Today
Wella Company today issued its Environmental and Social Impact Report 2022, the first measured analysis of the company’s efforts to positively impact People, Planet and through its Products. Key highlights include:
- People: During 2023, Wella Company successfully deployed We Own Our Way (WOW), a broad-based employee ownership program ensuring that every Wella Company employee has a vested financial interest in the company’s future. Now, Wella Company employees across all levels have the opportunity to benefit with wealth creation when Wella Company succeeds.x Making strides in DEIB, the company has increased female representation to 59% across its global employee population, and 58% on its Board of Directors. The company also reached its commitment to 100% gender pay parity across all levels one year ahead of goal.
- Planet: Committed to reducing carbon footprint as well as water use and waste, in 2022 Wella Company decreased Scope 1-2 carbon emissions by 10% and reached Zero Waste to Landfill at 2 of its 3 factories and all 8 directly controlled distribution centers. The company also decreased water withdrawals by 5.5% and waste generated by 13.7% per unit produced in its three factories.
- Products: Gains achieved include 80% of product ingredients by volume being biodegradable and 77% of total packaging being recyclable, reusable or refillable. The company is also continuing the portfolio-wide transition to packaging made of recycled materials, including aluminum tubes, paper boxes, and caps.
“For a company so young in our tenure, we believe we are progressing our environmental and social impact journey with the right momentum and delivering against our stated ambitions with integrity and purpose,” said Hilary Crnkovich, Wella Company’s Chief Communications and Sustainability Officer.
About Wella Company
We are Wella Company, an innovative global leader in the beauty industry that combines its iconic 140+ years history and industry expertise with its emerging status as a category-leading high-growth company. Since 2020, Wella Company has galvanized the transformation of our business and brands to become one of the fastest-growing companies in the beauty sector. Our portfolio of leading professional and retail hair, nails, and beauty tech brands include Wella Professionals, O·P·I, ghd, Briogeo, Nioxin, Sebastian Professional, and Clairol. Wella Professionals is the No. 1 Salon Color Brand in the Worldxi and OPI is the #1 Professional Nail Salon Brand Worldwide. With an ambition to become the best beauty company in the industry, we inspire consumers and beauty professionals through our brands to look, feel, and be their true selves. We approach the product creation process by rigorously combining science, technology, and artistry to develop performance-led products, often distinguished by patented technology, a mark of the legendary Wella difference.
Guided by our company values and led by purpose to deliver positive impact on people through our products and towards our planet and society, we deliver sustainable growth to all stakeholders. We proudly support the salon industry and the artists and stylists we serve across the 127 countries in which we operate. Each day, we impact a diverse community of more than 91 million beauty lovers and industry professionals, social influencers, ambassadors, followers, employees, customers, and suppliers across the globe. This is our Wella Family. Our belief to be better by doing better guides our business, and our environmental and social progress. Continuing our journey to sustainably improve our products, reduce our impact on the environment, and create a culture where all employees lead as owners invested in our shared success, we ensure Wella Company prospers for generations to come. For more information on Wella Company, visit www.wellacompany.com and follow us on LinkedIn and Instagram.
i Based on Wella Master Brand USD sales on the 2022 Salon Hair Care Study for the hair coloring products category published by Kline
ii Source: Nielsen, last 6 months ending Sept. 2023
iii Source: Nielsen database, YTD w/e 10/28/23
iv Source: US NPD Jan-Sept 2023
v Source: Nielsen Discover 52 w/e 11/04/23
vi Source: Euromonitor and Kline 2022 CY
vii Source: Nielsen Discover Jan-Oct 31, 2023
viii Source: Nielsen Discover 52 w/e 11/04/23
ix Source: US NPD Jan-Sept 2023
x The We Own Our Way (WOW) Program is a financial benefit program which is paid following the successful transition of full ownership from Wella Company’s majority owner, KKR, Inc. All eligible employees are enrolled at hire with no personal financial contribution required.
xi Based on Wella Master Brand USD sales on the 2022 Salon Hair Care Study for the hair coloring products category published by Kline
