Oddity topped Wall Street forecasts in the ultimate three months of 2023 because it prepares to launch brands three and 4 next yr.
The publicly listed owner of skincare brand SpoiledChild and makeup line Il Makiage reported net revenue of $97 million in its fourth quarter, in comparison with $67 million a yr earlier. Wall Street had forecast $85.9 million, based on Factset.
Net income was $5.1 million in comparison with a net lack of $700,000 within the fourth quarter of 2022. Adjusted diluted earnings per share were 17 cents, up from 1 cent a yr earlier. Analysts were expecting 9 cents.
Providing a brand update, global chief financial officer Lindsay Drucker Mann told WWD that two-year-old SpoiledChild delivered $110 million in net revenue during 2023 and is profitable.
“That form of consequence for a brand lower than two years old is what we imagine is totally unprecedented in direct to consumer,” she said.
Il Makiage, meanwhile, grew by strong double digits not only in color, but significantly expanded its business in skincare, which now accounts for 20 percent of its revenue.
Recent brands, numbers three and 4, will launch in 2025. While not many details are known, one in every of them is a medical-grade skin and body care brand targeting issues resembling eczema and pimples.
“We see those are huge pain points for our users and the vast majority of our users tell us they’re unsatisfied with the present solutions,” said Drucker Mann. “The user experience is bad. The products in the marketplace currently don’t work well. And so with brand three, we’re constructing what’s really an end-to-end solution that positions us to win.”
For full yr 2024, Oddity is forecasting net revenue between $620 million and $630 million, representing year-over-year growth of between 22 and 24 percent.
Founders brother and sister Oran Holtzman and Shiran Holtzman-Erel relaunched cosmetics brand Il Makiage in 2018 after receiving a $29 million investment from L Catterton, which bought a 35.8 percent stake within the business in 2017. Oddity launched its second brand, SpoiledChild, in February 2022, with 17 refillable stock keeping units across hair care and skincare, priced from $45 to $95. It went public through an initial public offering in July.
