Oddity beat Wall Street forecasts in the final three months of 2023 as it prepares to launch its third and fourth brands next year.
The publicly traded owner of skin care brand SpoiledChild and cosmetics line Il Makiage reported fourth-quarter net revenue of $97 million, compared with $67 million in the year-ago period. Wall Street had expected $85.9 million, according to FactSet.
Net income was $5.1 million, with a net loss of $700,000 for the fourth quarter of 2022. Adjusted diluted earnings per share were 17 cents, up from 1 cent in the year-ago period. Analysts had expected 9 cents.
Providing an update on the brand, Global Chief Financial Officer Lindsey Drucker Mann told WWD that the two-year-old SpoiledChild is on track to generate $110 million in net revenue and become profitable in 2023. He said he was there.
“We believe these results for a brand less than two years old are completely unprecedented in direct-to-consumer sales,” she said.
Meanwhile, Il Makiage has not only experienced strong double-digit growth in color, but also in skin care, which now accounts for 20% of sales.
The new brands in third and fourth place are scheduled to be launched in 2025. While not many details are known, one of them is a medical-grade skin and body care brand targeting issues such as eczema and acne.
“These are major pain points for users, and the majority of users say they are not satisfied with their current solution,” Drucker Mann said. “The user experience is bad. Products currently on the market don’t work well. And at Brand 3, we’re building a true end-to-end solution to win.”
Oddity projects full-year 2024 net revenues of $620 million to $630 million, representing 22% to 24% year-over-year growth.
The founders, brothers and sisters Oran Holzman and Siran Holzman Ellel, launched the cosmetics brand Ile Maquillage in 2018 after receiving a $29 million investment from L. Catterton, who bought a 35.8% stake in the business in 2017. ‘ was relaunched. Oddity launched its second brand, Spoiled Child, in February. 2022 includes 17 refillable hair care and skin care inventory storage units, priced from $45 to $95. The company went public through an initial public offering in July.