Solo Brands Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Solo Brands Reports Second Quarter 2024 Financial Results
Solo Brands, Inc. (NYSE:DTC) announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Net Sales | $131.6 million | $130.9 million | +0.5% | $128.53 million |
| Net Loss | $4.0 million | Net Income $11.6 million | -135.1% | N/A |
| Net Loss per Share | $(0.05) | $0.12 | -143.7% | $0.13 |
| Adjusted Net Income | $6.0 million | $17.8 million | -66.2% | N/A |
| Adjusted EBITDA | $15.5 million | $25.0 million | -38.2% | N/A |
| Adjusted Net Income per Share | $0.04 | $0.16 | -75% | N/A |
Interpretation: The company's revenue slightly increased by 0.5% YoY, exceeding Wall Street's consensus estimate. However, the overall financial health deteriorated, with a significant decline in net income and higher net loss per share, primarily driven by increased operational costs and a challenging economic environment.
Segment Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Direct-to-Consumer | $98.8 million | $99.7 million | -0.9% |
| Retail | $32.8 million | $31.3 million | +4.8% |
Interpretation: The retail segment showed modest growth with a 4.8% increase in revenue, which offset the slight decline in the direct-to-consumer segment. This indicates a robust performance in strategic partnerships but highlights challenges within the direct consumer market.
Comments from Company Officers
Chris Metz, the CEO, highlighted that despite encouraging retail sales and improvements in the direct-to-consumer business, the near-term environment remains challenging, leading to softer demand trends.
Forward Guidance
The company has lowered its full-year 2024 guidance: - Total revenue is expected to be between $470 million and $490 million. - Adjusted EBITDA margin is forecasted to be between 9% and 10%.
Stock Price Movement
Following the earnings release, Solo Brands' stock experienced a sharp decline, dropping by approximately 6.4%.
Summary
Solo Brands posted mixed financial results for the second quarter of 2024, with slight revenue growth but significant declines in key profitability metrics. The retail segment performance remains strong, but softer demand in the direct-to-consumer market poses challenges. The company has revised its forward guidance downward, reflecting cautiousness amid uncertain economic conditions.
The report has been organized for clarity and conciseness.
