Dive Brief:
- Oddity Tech on Wednesday reported “record” first quarter net revenue of $212 million, up 28% year over year, according to a company press release.
- The parent of beauty brands SpoiledChild and Il Makiage reported record net income of $33 million, up 68% year over year. Operating income was about $39 million, a 58% increase over the same period in 2023.
- Based on the strength of its first quarter results, Oddity raised its guidance for the full fiscal year, with net revenue expected to between $626 million and $635 million, representing year-over-year growth of between 23% and 25%.
Dive Insight:
Since going public last July, Oddity has shown substantial revenue growth in every quarter.
The company last fiscal year reported net revenue in excess of $509 million. Co-founder and CEO Oran Holtzman said the company’s goal for its two current brands, Il Makiage and SpoiledChild, is to reach the $1 billion mark in sales.
“We have proven again and again that our platform is a scaling machine,” Holtzman said on the company’s earnings call Wednesday. “It’s the power of our more than 50 million users and over two billion data points that we already acquired in the past five years. This combination of data, technology and a category with high online demand has enabled us to consistently win across the board.”
Plans are underway for Oddity to launch two additional brands in 2025, one of which is expected to address acne, eczema and other skin issues. “Brands 3 and 4 are being built in two large categories in beauty and wellness,” Holtzman said. “We believe the opportunity is massive for each of them, and we are spending a lot of time and focus to make sure we will capture this massive opportunity.”
While various segments of the economy have sputtered in recent months, the beauty industry continues at a steady pace. The industry is on track to grow 6% annually through 2027, according to a report last year from McKinsey & Company and The Business of Fashion. Online sales of beauty products in the U.S. are forecast to reach $45 billion by 2027, per to the report.
Ulta Beauty, considered a top beauty retailer in the U.S., has plans to expand in 2025 with brick-and-mortar stores in Mexico. The brand is coming off a strong year in 2023 where net sales grew 18.3% to $10.2 billion.
