Oddity Beats Wall Street Forecasts in First Quarter
Il Makiage and SpoiledChild owner Oddity exceeded Wall Street predictions in the first quarter, defying concerns about the overall health of the beauty industry. The company reported a net revenue of $212 million, surpassing analysts’ forecast of $205 million. Net income also rose to $33 million from $20 million in the same period last year, with adjusted diluted earnings per share at 61 cents compared to 37 cents in 2023.
Despite market speculation about a potential industry slowdown, Oddity raised its full-year 2024 outlook. The company now expects net revenue to be between $626 million and $635 million, up from the previous forecast of $620 million to $630 million. Additionally, Oddity revealed plans to launch two new brands in 2025, one of which will focus on medical-grade skin and body care.
Oddity co-founder and CEO Oran Holtzman stated, “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.”
In contrast, Ulta Beauty CEO Dave Kimbell recently warned of a cooling demand for beauty products. Data from Circana also indicated a slowdown in the industry’s rapid growth. Larissa Jensen, Circana’s global beauty industry adviser, noted, “The beauty industry has had unprecedented double-digit growth year-over-year-over-year, especially in prestige. The expectation has always been that at some point, the industry performance would soften. That’s what’s happening.”