Solo Brands (DTC) investor relations material

Business transformation and product innovation

• Underwent significant transformation, focusing on cost reduction, operational efficiency, and product innovation across outdoor lifestyle, menswear, and watersports segments.

• Launched multiple new products, including the Summit Series fire pits, Steelfire griddles, Windchill cooler, and expanded into women's apparel with Cheekies.

• Watersports division saw major growth, especially through Costco and the Tommy Bahama license, with new products like water hammocks and waterproof bags.

• Expanded Chubbies into new categories such as polos, golf, kids, denim, and NFL collaborations, with strong retail partnerships.

• Product innovation is supported by high net promoter scores and strong customer enthusiasm.

Financial performance and cost structure

• Q1 revenue was $63 million with $1.6 million EBITDA, down from $77 million and $3.5 million EBITDA YoY, mainly due to timing and tariffs.

• Significant structural cost reductions achieved, including $8–10 million in payroll cuts and halving distribution center square footage.

• SG&A reduced by $6 million YoY; cost structure now allows $0.40 of every revenue dollar to flow to EBITDA.

• Tariff refunds of $10 million expected, with $2 million already received, easing some financial pressure.

• Guidance reiterated for $280–310 million revenue and 50% YoY EBITDA growth, driven by cost discipline.

Operational initiatives and technology

• Consolidated warehouses from 10 to 5, targeting 3, and partnered with 3PLs for further $3 million annual savings.

• Aggressively implemented AI across operations, marketing, and product development, aiming for further efficiency and scalability.

• Hosted company-wide AI hackathons to drive process improvements and embed AI in daily functions.

• Automation and real-time analytics deployed for marketing and sales, with positive early results.

• Leadership team strengthened with new SVP of Sales and Chief Digital Officer to drive international and DTC growth.