DTC

Solo Brands, Inc.

3.80
USD
-4.76%
3.80
USD
-4.76%
3.66 23.39
52 weeks
52 weeks

Mkt Cap 240.91M

Shares Out 63.40M

Chat
Send me real-time posts from this site at my email

Why Solo Brands Stock Sank on Thursday

What happened Solo Brands (NYSE: DTC), one of the more interesting stocks in the consumer goods space, had an interesting day on the market Thursday. The company's stock rose as much as 22% higher then swooned to an almost 11% loss before closing largely flat over Thursday's close. This see-saw action occurred after the release of the company's latest set of quarterly earnings. So what For its second quarter, Solo booked net sales of $136 million, which was more than 53% higher on a year-over-year basis. This also topped the average analyst estimate of under $123 million. The company, which owns a portfolio of direct-to-consumer (DTC) outdoor and apparel brands, also notched a convincing beat on the bottom line. It netted just over $17 million ($0.40 per share) according to non-GAAP (adjusted) standards, well ahead of the collective prognosticator per-share projection of $0.28. That $17 million-plus was down considerably (37%) from the same quarter a year ago, however. As a young and acquisitive company, Solo benefited from recent asset buys during the quarter. It also attributed its top-line growth to higher demand from both DTC and wholesale customers. Now what In its earnings release, Solo quoted CEO John Merris as saying that the company's continued push of the DTC channel "while simultaneously investing in innovation and systems ... will position us to deliver consistent, long-term growth for our shareholders." The company updated its guidance for full-year 2022 in the release, writing that it expects total revenue to improve in the mid-20% range against the 2021 result, with the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin landing somewhere in the mid-10% band. No net income forecasts were provided. 10 stocks we like better than Solo Brands, Inc. When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Solo Brands, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of August 11, 2022 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue