Zinger Key Points
- Solo Brands said its unique marketing campaigns raised brand awareness, but did not lead to the sales lift that it had planned.
- Recently, Snoop Dogg shocked world when he said he was quitting smoke. However, it was all publicity stunt, an advt. for Solo Brands.
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Solo Brands Inc DTC shares are trading lower after it disclosed its President and Chief Executive Officer (CEO) departure and lowered its FY23 outlook.
Solo Brands appointed Christopher T. Metz as its new President, Chief Executive Officer, and Director of the Board, effective January 15, 2024.
Metz succeeds John Merris, who will mutually separate from the company effective as of the same date.
Metz has over 25 years of experience in leading consumer and durable goods companies and has most recently served as the CEO of Vista Outdoor Inc VSTO.
Also Read: Snoop Dogg Did Not Give Up Smoke: Rapper Explains Publicity Stunt
FY23 Guidance Trimmed: DTC now expects revenue of $490 million-$500 million (vs. $520 million-$540 million expected earlier) and adjusted EBITDA margin of 14%- 15% (vs 17%-18% prior).
Andrea Tarbox, interim CFO, said, "Our fourth quarter results came in below expectations as we experienced softer-than-anticipated sales in our direct channel. While our unique marketing campaigns raised brand awareness of Solo Stove to an expanded and new audience of consumers, it did not lead to the sales lift that we had planned, which, combined with the increased marketing investments, negatively impacted our EBITDA."
The company plans to report its FY23 results in March 2024.
Price Action: DTC shares are down 35.59% at $3.80 premarket on the last check Monday.
Photo via Wikimedia Commons
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