NYSE$SBDS

Solo Brands Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported mixed results with retail sales growth offset by a slight decline in direct-to-consumer revenue. Full year guidance was lowered due to softer demand trends.

Solo Brands reported a slight increase in net sales for the second quarter of 2024, but experienced a net loss. While retail sales increased, direct-to-consumer revenue declined slightly. The company lowered its full year 2024 guidance due to challenging near-term environment and softer demand trends.

  • Net sales increased by 0.5% to $131.6 million compared to the second quarter of 2023.
  • Net loss was $4.0 million, a decrease of $15.6 million or 135.1% compared to the same period last year.
  • Direct-to-consumer revenues decreased slightly to $98.8 million, a 0.9% decrease year-over-year.
  • Retail revenues increased by 4.8% to $32.8 million compared to the second quarter of 2023.

Headline financials

Total Revenue

$132M

Previous: $131M+0.5%
EPS

-$0.05

Previous: $0.22-122.7%
Adjusted Net Income

$6.04M

No prior period
Adjusted EBITDA

$15.4M

No prior period
Adjusted Gross Profit

$83.6M

No prior period
Adjusted Gross Margin

63.6%

No prior period
Solo Stove Segment EBITDA

$14.8M

No prior period
Chubbies Segment EBITDA

$7.7M

No prior period
Capital Expenditures

-$5.23M

Previous: -$3.47M-50.8%
Free Cash Flow

-$9.26M

Previous: $3.96M-334.0%
Net Income

-$4.04M

Previous: $7.42M-154.4%
Operating Income

$2.24M

Previous: $11.1M-79.8%
Gross Profit

$82.6M

Previous: $83.1M-0.5%
Cash & Equivalents

$20.1M

Previous: $60.6M-66.8%
Total Assets

$642M

Previous: $881M-27.1%
Stock-Based Comp

$1.64M

Previous: $4.96M-67.0%

Revenue & EPS history

Solo Brands · Revenue · Quarterly

$132M

Q2 2024+0.5%vs Q2 2023
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

Solo Brands updated its full year 2024 outlook, expecting total revenue between $470 million and $490 million, and adjusted EBITDA margin between 9% and 10%.

Tailwinds

  • Laser focused on stabilizing business
  • Investing in capabilities and infrastructure
  • Aiming to return to growth in 2025

Headwinds

  • Challenging 3rd quarter performance
  • Uncertain macroeconomic environment
  • Lowering annual guidance for 2024

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.4%

Avg return

Earnings day

-3.5%

Avg return

5 days after

-3.7%

Avg return

30 days after

44%

8 / 18 earnings

Positive

+50.8%

Q1 2025

Best reaction

-62.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-9.3%-17.3%
Q3 2025-28.3%-20.1%-33.9%
Q1 2025+50.8%+30.1%+119.2%
Q4 2024-62.9%-64.9%-75.6%
Q3 2024-10.3%-14.4%-21.9%
Q2 2024-41.6%-37.1%-28.7%
Q1 2024+3.0%+2.0%-5.6%
Q4 2023-2.9%-10.4%-21.2%
Q3 2023+14.7%+13.4%+35.4%
Q2 2023+10.3%+6.7%-1.8%
Q1 2023-5.2%-6.6%-42.0%
Q4 2022+36.6%+66.4%+99.8%
Q3 2022+24.1%+25.8%+5.2%
Q2 2022-2.0%-6.0%-20.7%
Q1 2022-5.5%-15.6%-8.5%
Q4 2021+3.9%-4.9%-26.9%
Q3 2020+3.1%-7.2%-7.1%
Q3 2021-11.0%-11.5%-15.1%
Q2 2021
Q1 2021
Q4 2020
Q2 2020
Q1 2020
Q4 2019

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro