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Solo Brands (DTC) Reports Earnings Tomorrow: What To Expect


Radek Strnad /
2024/08/06 3:05 am EDT

Outdoor lifestyle and recreational products company Solo Brands (NYSE:DTC) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Solo Brands beat analysts' revenue expectations by 9.4% last quarter, reporting revenues of $85.32 million, down 3.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and full-year revenue guidance beating analysts' expectations.

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 1.9% year on year to $128.5 million, improving from the 3.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Solo Brands Total Revenue

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 twice over the last two years.

Looking at Solo Brands's peers in the leisure products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Harley-Davidson delivered year-on-year revenue growth of 12%, beating analysts' expectations by 27.2%, and Clarus reported a revenue decline of 2.5%, falling short of estimates by 4.8%. Harley-Davidson traded up 8.7% following the results while Clarus was down 13.9%.

Read our full analysis of Harley-Davidson's results here and Clarus's results here.

Investors in the leisure products segment have had steady hands going into earnings, with share prices flat over the last month. Solo Brands is down 3.7% during the same time and is heading into earnings with an average analyst price target of $3 (compared to the current share price of $2.08).

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