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Jun 30, 2024

Solo Brands Q2 2024 Earnings Report

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.

Key Takeaways

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.

Total Revenue
$132M
Previous year: $131M
+0.5%
EPS
$0.04
Previous year: $0.22
-81.8%
Adjusted Net Income
$6.04M
Adjusted EBITDA
$15.4M
Gross Profit
$82.6M
Previous year: $83.1M
-0.5%
Cash and Equivalents
$20.1M
Previous year: $60.6M
-66.8%
Free Cash Flow
$12.8M
Previous year: $35.4M
-63.8%
Total Assets
$642M
Previous year: $881M
-27.1%

Solo Brands

Solo Brands

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%.

Positive Outlook

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

Challenges Ahead

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