Solo Brands has reported a weak performance for Q4 2024, with net sales dropping by 13.2% to $143.5 million, due to declining sales in retail and direct-to-consumer channels in the Solo Stove segment.
Additionally, gross profit for Q4 2024 fell to $87.8 million compared to $96.4 million in the year prior.
In fiscal 2024, the company saw its net sales decrease by 8.1% to $454.6 million while net profit fell to $260.3 million from $302.2 million in the year prior.
However, the company’s Chubbies banner saw its net sales go up by 10.9% to $112.7 million, while its Solo Stove brand’s net sales dropped by 15.4% to $297.4 million.
John Larson, Solo Brands’ interim CEO and president, said: “During the fourth quarter, the board and management team engaged in developing an aggressive turnaround plan for 2025.
“As a part of our transformation plan, we hired external financial advisors to help us go through every line item of the business.
“Our board and management team are fully aligned and engaged on the turnaround plan and taking appropriate steps to implement 30+ value-accretive initiatives identified in our turnaround plan.”
Additionally, Solo Brands’ press release announced that the company has substantial doubt about its ability to continue operations and will be evaluating strategies moving forward.
Laura Coffey, Solo Brands’ chief financial officer, said in an earnings call: “Today’s 10-K also includes disclosures about the company’s ability to continue as a going concern.
“We are evaluating strategies to refinance our existing debt, and our plans are focused on improving our results and liquidity as we are discussing today.”
Recently, the former CEO Chris Metz stepped down from the role after a year, and Solo Brands received a non-compliance warning from the NYSE in March.
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