Solo Brands (NYSE:DTC) shares sank 35% to $3.81 in late-morning trading on Monday after the outdoor lifestyle company announced that its fiscal 2023 revenue is now expected to be between $490 million and $500 million, down from its previous guidance of $520 million to $540 million.
Solo Brands (NYSE:DTC) also said its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin is now expected to be in the range of 14% to 15%, as compared with its previous guidance of 17% to 18%.
"Our fourth quarter results came in below expectations as we experienced softer-than-anticipated sales in our direct channel," Solo Brands interim chief financial officer Andrea Tarbox said in a statement.
"While our unique marketing campaigns raised brand awareness of Solo Stove to an expanded and new audience of consumers, it did not lead to the sales lift that we had planned, which, combined with the increased marketing investments, negatively impacted our EBITDA."
As well, Solo Brands announced the appointment of Christopher Metz as its new CEO effective January 15, 2024.
Metz most recently served as CEO of Vista Outdoor Inc.