What slowdown?
Il Makiage and SpoiledChild owner Oddity blew through Wall Street forecasts in the first quarter of the year and raised their full-year 2024 outlook despite concerns about the health of the wider beauty industry.
Net revenue was $212 million in the first three months of the year, compared to $166 million in the same period last year. Analysts polled by Factset forecast $205 million.
Net income was $33 million, up from $20 million in the first quarter of 2023. Adjusted diluted earnings per share were 61 cents, compared to 37 cents a year earlier, beating Wall Street forecasts for 47 cents.
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The company now expects net revenue to come in between $626 million and $635 million, up from its previous forecast of $620 million and $630 million.
New brands, numbers three and four, will launch in 2025. While few details are known, one is expected to be a medical-grade skin and body care brand targeting issues such as eczema and acne.
“We delivered across all metrics and grew rapidly against the huge and profitable 83 percent revenue growth we delivered in the first quarter of 2023. Despite market speculation about an industry slowdown, we haven’t seen any slowdown in our platform, not in new users and not in existing users behavior,” said Oran Holtzman, Oddity cofounder and chief executive officer.
In April, Ulta Beauty CEO Dave Kimbell warned that demand for beauty in general had slowed by more than he had anticipated. And this week, data from Circana indicated that beauty’s rapid growth is starting to slow.
“The beauty industry has had unprecedented double-digit growth year-over-year-over-year, especially in prestige,” said Larissa Jensen, Circana’s global beauty industry adviser. “The expectation has always been that at some point, the industry performance would soften. That’s what’s happening.”