NYSE$SBDS

Solo Brands Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Solo Brands' Q4 2023 results reflected a decrease in net sales and a net loss, impacted by lower direct-to-consumer revenue and impairment charges.

Solo Brands reported a decrease in net sales for Q4 2023, driven by lower direct-to-consumer revenue. The company experienced a significant net loss due to impairment charges, partially offset by increased wholesale revenue and reduced selling, general, and administrative expenses. Management is focused on strategic investments for long-term growth.

  • Net sales decreased by 16.2% to $165.3 million compared to Q4 2022.
  • Net loss was $210.9 million, significantly down from a net income of $19.5 million in Q4 2022, due to impairment charges.
  • Direct-to-consumer revenue decreased by 20.8%, while wholesale revenue increased by 4.2%.
  • Adjusted EBITDA decreased by 61.6% to $14.9 million.

Headline financials

Total Revenue

$165M

Previous: $197M-16.2%
EPS (adj)

$0.13

Previous: $0.33-60.6%
Adjusted Net Income

$11.3M

No prior period
Adjusted EBITDA

$14.9M

No prior period
Adjusted Gross Profit

$98.1M

No prior period
Adjusted Gross Margin

59.3%

No prior period
Capital Expenditures

-$2.15M

Previous: $1.73M-224.3%
Net Income

-$211M

Previous: $19.5M-1181.3%
Operating Income

-$241M

Previous: $26.8M-997.9%
Gross Profit

$96.4M

Previous: $118M-18.3%
Stock-Based Comp

$3K

Previous: $5.39M-99.9%

Revenue & EPS history

Solo Brands · Revenue · Quarterly

$165M

Q4 2023-16.2%vs Q4 2022
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

Solo Brands expects total revenue between $490 million and $510 million for 2024, with an adjusted EBITDA margin between 10% and 12%.

Tailwinds

  • Strength of brands
  • Long-term growth strategy
  • Tremendous opportunity for both channel and category expansion
  • Focus on strategic investments for the long-term.

Headwinds

  • Uncertain environment
  • Pressures on consumers’ discretionary spending
  • Guidance is based on assumptions that are subject to change
  • Actual results may vary from assumptions.
  • No assurance that the company will achieve these results.

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 Q4 2023

Historical avgQ4 2023

-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

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