Solo Brands Inc (DTC) Q3 2023 Earnings: Net Sales and Net Income Surge
Net sales for Q3 2023 reached $110.3 million, an increase of 8.0% compared to Q3 2022.
Net income for the same period was $3.1 million, a significant increase of 176.7% from the previous year.
Adjusted net income and EBITDA also saw substantial growth, increasing by 100.7% and 33.0% respectively.
For the nine months ended in 2023, net sales and net income rose by 2.8% and 157.2% respectively.
On November 7, 2023, Solo Brands Inc (NYSE:DTC) released its financial results for the third quarter and nine months ended September 30, 2023. The company reported strong performance, with significant increases in net sales and net income compared to the same periods in 2022.
Financial Highlights
For Q3 2023, Solo Brands Inc (NYSE:DTC) reported net sales of $110.3 million, up $8.2 million or 8.0% from Q3 2022. Net income for the same period was $3.1 million, a significant increase of $7.1 million or 176.7% from the previous year. Adjusted net income and EBITDA also saw substantial growth, increasing by 100.7% and 33.0% respectively.
For the nine months ended in 2023, the company reported net sales of $329.5 million, up $9.1 million or 2.8% from the same period in 2022. Net income for the same period was $15.5 million, up $42.7 million or 157.2% from the previous year. The company also reported a net cash provided by operating activities of $39.2 million, up $74.5 million or 210.9%.
Company's Commentary
John Merris, Chief Executive Officer of Solo Brands, commented on the results, stating,
We delivered third quarter results exceeding expectations largely driven by strong retail sales. Brand momentum is encouraging as we grow our retailer relationships. Looking ahead at the all-important fourth quarter, we recognize the headwinds consumers are facing. However, we have a lot of exciting, unique and compelling marketing programs to reach new customers, which we believe will stand out from the crowd and drive enthusiasm for our brand. We are well positioned to navigate an uncertain consumer environment given the resilience and strength of our financial model."
Balance Sheet and Full Year 2023 Guidance
As of September 30, 2023, Solo Brands Inc (NYSE:DTC) reported cash and cash equivalents of $16.6 million. The company's outstanding borrowings were $75.0 million under the Revolving Credit Facility, and $92.5 million under the Term Loan Agreement. The company also reported an inventory of $114.1 million.
For the full year 2023, the company expects revenue to be in the range of $520 to $540 million, with the most likely outcome at the midpoint of that range of $530 million. The company also expects to deliver an Adjusted EBITDA margin of between 17% to 18% for the full year.
Explore the complete 8-K earnings release (here) from Solo Brands Inc for further details.
This article first appeared on GuruFocus.
