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Solo Brands Inc. Class A (DTC-11.05%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details a decrease in net sales to $454.6 million from $494.8 million in the previous year. This decline is attributed to a lack of significant new product launches in 2024 compared to the prior year.
The company reported a gross profit of $260.3 million, down from $302.2 million in 2023, with the gross margin decreasing from 61.1% to 57.3%.
Operating expenses for the year were $434.9 million, a decrease from $530.0 million in 2023, primarily due to a reduction in restructuring, contract termination, and impairment charges.
Net loss for the year was $113.4 million, compared to a net loss of $111.3 million in 2023. The decrease in net income is attributed to the decline in net sales and gross profit.
The company identified a material weakness in its internal control over financial reporting due to deficiencies in segregation of duties, information technology change management, and finance resource constraints.
Solo Brands continues to focus on its strategic initiatives, including the termination of underperforming marketing agreements, winding down of the IcyBreeze reporting unit, and reorganization of the Oru and ISLE reporting units.
The filing also discusses the company's liquidity challenges, with cash and cash equivalents of $12.0 million and total debt outstanding of $150.7 million as of December 31, 2024.
Solo Brands is evaluating strategies to refinance its existing debt and improve its results and liquidity through operational improvements in 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Solo Brands Inc. Class A annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.