Gross profit increased by 57.8% year-on-year! Meiya big brands sold 700 million in one quarter

"People are loving camping more and more. It allows them to stay away from crowds and enjoy life. Most importantly, it has boosted the sales of our products," said a seller of outdoor camping products on Amazon.

As outdoor leisure activities become more and more popular among the public, the demand for camping is increasing. Taking the United States, which loves outdoor activities the most, as an example, data shows that in 2021, the number of people participating in outdoor camping in the United States exceeded 66 million, of which more than 8.3 million people participated in camping activities for the first time, accounting for about 12.6% .

With the camping craze, sales of outdoor kitchenware, portable energy storage products, tents and other related outdoor equipment are also surging . As for Solo Stove , a well-known outdoor stove brand on Amazon , it made a lot of money in the first three quarters of this year.

Sales exceeded US$300 million in three quarters, and outdoor niche products are selling well

Since the beginning of this year, the e-commerce market has been facing headwinds. Many companies that mainly operate online channels have declared bankruptcy, and many e-commerce platforms have announced their closure. Even companies that have always been popular in Europe and the United States and focus on outdoor products have not performed well in terms of revenue. However, Solo Brands has submitted a good answer.

According to Solo Brands' financial report, in the third quarter of this year, its net sales were US$102.2 million, an increase of 47.1% over the same period last year ; its net loss was US$4 million, a decrease of US$6.1 million over the same period last year .

In the first three quarters of this year, Solo Brands also performed well, with net sales increasing 41% to US$320.4 million , compared with US$227.2 million in the same period last year .

Solo Brands said that the significant increase in revenue this year was mainly due to the business boost from the brands acquired last year , the hot supply wholesale market and the significant increase in B2C revenue . Currently, about 85% of the company's business is DTC business and 15% is wholesale business .

It is reported that in the third quarter of this year, Solo Brands ' wholesale revenue increased by 39.7% to US$15.9 million from the same period last year , and B2C revenue increased by 48.6% to US$86.3 million from US$58.1 million in the same period last year . In the first three quarters, wholesale revenue increased by 61.5% to US$57.8 million from the same period last year, and B2C revenue increased by 37.2% to US$262.6 million from US$191.5 million in the same period last year .

The B2C side is growing rapidly. Obviously, with the market downturn this year and large-volume purchases becoming cautious, Solo Brands has begun to focus on growth directly facing consumers.

On Amazon, Solo Stove, an outdoor stove brand under Solo Brands , is very popular among consumers. As a niche category, most of its products have 1,000-2,000 reviews and the scores are all higher than 4.6.

Solo Stove is not only successful on Amazon, but also on Walmart. The product ratings are generally very high , and some products even have more reviews than Amazon . As we all know, Walmart is currently far inferior to Amazon in terms of e-commerce market performance, especially for the purchase of such niche outdoor products, consumers are more dependent on Amazon .

In addition to revenue growth, Solo Brands ' gross profit is also growing. In the third quarter of this year, its gross profit increased by 57.8% to US$64.7 million , while its gross profit in the first three quarters increased by 36% to US$200.2 million, compared with US$147.2 million in the same period last year.

With a five-year compound growth rate of 132%, Solo Stove meets market demand

Last year, in preparation for its IPO, Solo Brands acquired the rowing brand Oru Kayak and the paddle board brand ISLE.   Paddle Boards and casual menswear brand Chubbies upgraded from Solo Stove to Solo Brands and became a brand management and operations company.

Although Solo Brands did not disclose the specific revenue of each brand in this year's financial report , it can be seen from previous financial reports that its founding brand Solo Stove is still the engine driving the development of Solo Brand.

Last year , the company's net sales for each brand were: Solo Stove $133 million, Chubbies $44 million, ISLE $21 million, Oru Kayak $23 million, and Oru Kayak $26 million.   12 million US dollars .

Due to its limited audience, the outdoor stove market will not experience explosive growth in the short term like other categories. However, according to the prospectus disclosed by Solo Brands last year, the five-year compound annual growth rate of Solo Stove was 132% from 2016 to 2021 .

In 2011 , the outdoor DTC brand Solo Stove was born . Ten years of development laid the foundation for it to enter the capital market . So in 2021, it also started its IPO journey in the listing boom . Its revenue increased significantly in the first year of listing . However, the US outdoor kitchenware companies Traeger and Weber, which went public at the same time , performed poorly this year.

It is reported that the current share price of Treeger has fallen by 84% compared with its IPO issue price, and the share price of Weber has fallen by 42% . Although the decline of Solo Brands has also been nearly 80%, its sales performance is very different from that of Treeger and Weber .

In the first three quarters of this year , Traeger's revenue fell 15% and Weber's net sales fell 20 %. In contrast, Solo Brands' revenue increased 41% .

John Merris, CEO of Solo Brands , said the company is taking positive measures to resist the current market uncertainty, and the third quarter revenue exceeded expectations, which means their strategy is correct. The improvement in gross profit margin this year has driven the strong growth of Solo Brands' overall revenue, and sales growth is expected to be greater in the fourth quarter driven by the holiday season.

Solo Brands ' investors said that the potential users of Solo Stove in the United States are about 100 million households , but it has only penetrated 1.5% to 2% of the entire market. Solo Stove is also entering the international market and has huge room for future growth .

" Micro-tourism " is becoming more and more popular, and outdoor products are very popular

The growing popularity of outdoor camping will inevitably lead to a surge in demand for related products, bringing it more market.

In China, Xiaohongshu data shows that the popularity of camping has been rising for three consecutive years, and the cities and groups participating in camping have gradually become more and more diverse . "Camping +" has attracted attention from the industry. This has driven the sales of outdoor kitchenware , portable energy storage products and other products to continue to grow .

It is understood that outdoor stoves are currently selling well on domestic e-commerce platforms, with sales of sub-products such as cassette stoves, wood stoves, portable fire tables , and windproof gas stoves surging . Many stores on e-commerce platforms have monthly sales of more than 10,000 outdoor cassette stoves , and during this year's 618 promotion, sales of outdoor products on JD.com increased by 662% year-on-year, making it one of the categories with the highest growth. Sales of other camping products increased by more than 10 times year-on-year .

In foreign countries, the market for camping products is also growing. A seller of outdoor stoves in the United States said that since September, his store's outdoor stove products have been in great demand, with sales increasing by more than 20% for three consecutive months .

In addition to portable and small outdoor stoves, the market for outdoor barbecue grills is also growing.

According to data from NPD Group , portable grills, gas grills, and outdoor kitchenware in the U.S. market recovered in 2021 compared to before the pandemic , with total sales exceeding 6 million units. Sales of related grill and stove accessories are also heating up , with nearly 13 million grill accessories sold in the second half of last year alone , a 4% increase from the same period in 2020 .

The data also noted that American consumers purchased more than 21 million grills and outdoor stoves from July 2020 to 2021 .

Currently, the "camping fever" continues to heat up, the outdoor economy has become a new consumer "trend", and the market for outdoor products is becoming increasingly popular. This trillion-level market still has huge room for growth.

Amazon

Big Brands