Apparel retailer Solo Brands Q2 sales fall 29.9% as demand drops
Apparel retailer Solo Brands reported a 29.9% decline in Q2 net sales, primarily due to a 45.8% drop in the Solo Stove segment from reduced promotions and excess inventory. However, Chubbies saw a 13.1% sales increase, enhancing segment EBITDA by 48.3%. The company generated $11 million in operating cash flow through cost reductions. Key metrics included Q2 sales of $92.26 million and a net loss of $20.77 million. The stock trades at 128 times the next 12-month earnings, a significant increase from a P/E of 11 three months ago.
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Overview
- Solo Brands Q2 net sales decline 29.9%, driven by Solo Stove segment
- Chubbies Q2 sales rise 13.1%, boosting segment EBITDA by 48.3%
- Gross profit drops; Company generated $11 mln in operating cash flow
Result Drivers
- SOLO STOVE DECLINE - Sales fell 45.8% due to reduced promotional activity and excess inventory at retailers
- CHUBBIES GROWTH - Sales rose 13.1%, driven by strong retail channel performance and sustained strong DTC demand
- COST REDUCTIONS - Company focused on structural cost reductions and cash generation, yielding $11 mln in operating cash flow
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q2 Sales $92.26
mln
Q2 $0.02
Adjusted
EPS
Q2 Net -$20.77
Income mln
Q2 $3.39
Adjusted mln
EBITDA
Q2 Gross $56.60
Profit mln
Q2 $66.43
Operatin mln
g
Expenses
Q2 -$19.09
Pretax mln
Profit
Analyst Coverage
- The stock recently traded at 128 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
