Solo Brands Inc.’s stock fell 32% Monday after the maker of Solo Stove portable firepits said its fourth-quarter results came in below expectations due to softer-than-expected direct-channel sales.
The drop in Solo Brands’
DTC,
stock puts it on track for its worst-one day performance ever, eclipsing the stock’s 17.7% drop on May 11, 2023.
The company lowered its 2023 revenue forecast to $490 million-$500 million, from its earlier view of $520 million-$540 million.
Analysts were expecting 2023 revenue of $530.6 million, according to FactSet consensus estimates.
The company also named the former chief executive of Vista Outdoor Inc.
VSTO,
Christopher T. Metz, as its new president and chief executive.
Its former chief executive, John Merris, is departing the company after five years.
Prior to Monday’s moves, Solo Brands’ stock was up by 46.4% in the past year, compared with a 20.6% rise by the S&P 500
SPX.
