Solo Brands Earnings: What To Look For From DTC

Outdoor lifestyle and recreational products company Solo Brands (NYSE:DTC) will be announcing earnings results tomorrow before market hours. Here's what you need to know.

Solo Brands met analysts' revenue expectations last quarter, reporting revenues of $165.3 million, down 16.2% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Solo Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Solo Brands's revenue to decline 11.6% year on year to $78 million, a reversal from the 7.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Solo Brands has missed Wall Street's revenue estimates three times over the last two years.

Looking at Solo Brands's peers in the leisure products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Johnson Outdoors's revenues decreased 13% year on year, beating analysts' expectations by 10.8%, and Ruger reported a revenue decline of 8.5%, falling short of estimates by 10.8%. Johnson Outdoors traded down 11.7% following the results.

Read our full analysis of Johnson Outdoors's results here and Ruger's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the leisure products stocks have fared somewhat better, they have not been spared, with share prices down 2.1% on average over the last month. Solo Brands is down 1.5% during the same time and is heading into earnings with an average analyst price target of $4 (compared to the current share price of $1.95).

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