Solo Brands (DTC 8.51%), 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.
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.
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.