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Dec 31, 2023
Solo Brands Q4 2023 Earnings Report
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.
Key Takeaways
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.
Forward Guidance
Solo Brands expects total revenue between $490 million and $510 million for 2024, with an adjusted EBITDA margin between 10% and 12%.
Positive Outlook
- Strength of brands
- Long-term growth strategy
- Tremendous opportunity for both channel and category expansion
- Focus on strategic investments for the long-term.
Challenges Ahead
- 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
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Avg. Return Before/After Earnings
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