Oddity topped Wall Street forecasts in the final three months of 2023 as it prepares to launch brands three and four next year.
The publicly listed owner of skin care brand SpoiledChild and makeup line Il Makiage reported net revenue of $97 million in its fourth quarter, compared to $67 million a year earlier. Wall Street had forecast $85.9 million, according to Factset.
Net income was $5.1 million compared to a net loss of $700,000 in the fourth quarter of 2022. Adjusted diluted earnings per share were 17 cents, up from 1 cent a year earlier. Analysts were expecting 9 cents.
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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 kind of outcome for a brand less than two years old is what we believe is completely 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 skin care, which now accounts for 20 percent of its revenue.
New brands, numbers three and four, will launch 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.
“We see those are huge pain points for our users and the majority of our users tell us they’re unsatisfied with the current solutions,” said Drucker Mann. “The user experience is bad. The products on the market currently don’t work well. And so with brand three, we’re building what’s really an end-to-end solution that positions us to win.”
For full year 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 in the business in 2017. Oddity launched its second brand, SpoiledChild, in February 2022, with 17 refillable stock keeping units across hair care and skin care, priced from $45 to $95. It went public through an initial public offering in July.
