Solo Brands, Inc. reported that sales tumbled 34.5 percent in the fourth quarter and 30.4 percent in the year due to steep declines in the flagship Solo Stove line. John Larson, president and CEO, told analysts he’s hopeful that a healthy reception to new fire pits and accessories will bring Solo Stove back to growth.

On Solo Brands’ fourth-quarter analyst call, Larson said Solo Stove’s declines over the last year in large part reflect efforts to repair relationships with retailers around the former often-discounted fire pits business.

“We intentionally realigned pricing and promotional activity at Solo Stove to reinforce pricing integrity and reset retail partnerships,” said Larson. “While this significantly impacted near-term sales results, it established a more disciplined foundation to support current and future retail partnerships.”

Larson further said sales in the overall flat fire pit business are about flat, with some “low-end competition” driving down prices. He said, “If you look throughout Amazon, there’s a tremendous amount of low-end kind of knockoff products that certainly don’t meet our quality standard. So, I would say, from a market share standpoint, on units, we’re certainly down, but at a much higher AOV (average order value). So, we’re performing fairly well there.”

However, he remained encouraged that a “fairly strong” reception to new items recently launched, including the Summit Series Smokeless fire pit, the portable Steelfire 22 griddle and a smaller cooler, puts the brand on the path towards growth. In the DTC channel, new products made up about a quarter of sales.

He said, “For us to expand sales, we really need to sell accessories related to those products, or try to reinvent the category, which we’ve done with the Summit Series. And then those customers that love us so much, really try to move them into the adjacent categories, and that’s what we’re trying to do with those new products.”

He said the new griddle line has been “really well received,” and the Summit Series of fire pits now ranks among Solo Stove’s top sellers within DTC one week after launch. He noted the Summit 24 Fire Pit was recently reviewed by Forbes and named its best choice in the category for the year.

Larson said Solo Brands is making progress in becoming a “structurally leaner, profit-driven business” by significantly reducing its cost structure and simplifying go-to-market approaches since he took over as CEO early last year, with the fourth quarter marking Solo Brands’ third quarter of positive operating cash flow in a row. However, Solo Brands needs to stimulate demand for its Sole Stove line.

“I think that’s the challenge behind us,” said Larson. “We are set up to flow through. Any revenue gains will flow through to the bottom line very efficiently and into cash flow, because we’ve reduced our cost structure so dramatically. But I look at that as our challenge right there.”

Among the company’s other brands, Chubbies’ sales were down 20 percent in the fourth quarter due to lower replenishment activity at wholesale than in the prior-year period and reduced DTC website traffic. For the year, however, Chubbies delivered more than 9 percent year-over-year growth, driven by solid online demand and growth in strategic partnerships. Larson said, “We continue to build and scale omnichannel brands supported by a product pipeline with strong momentum and durability.”

In February, Chubbies launched a new women’s swim brand, Cheekies, that’s showing some potential. Larson said, “Over the years, many of the women who bought Chubbies for the men in their lives began asking for swimwear built with the same confidence, personality and attention to fit, but explicitly designed for women. Cheekies is now sold through both direct-to-consumer channels and select retail partners.”

Other brands owned by Solo Brands include Oru Kayak and Isle Paddle Boards.

In his formal comments, Larson cited several accomplishments during the year in rightsizing the business, including restructuring its capital structure through a comprehensive refinancing, being re-listed on the New York Stock Exchange, resetting the Solo Stove division, significantly reducing costs, and maintaining stable gross margins for the year as it seeks to reposition the business for profitable growth.

“We are clearly product-led, but disciplined in how we grow,” said Larson. “Every launch must be margin accretive, supported by pricing integrity and coordinated promotions with partners to drive long-term value to our customers.”

Fourth-Quarter Results
In the quarter, sales decreased 34.5 percent to $94.0 million, primarily due to declines in both the direct-to-consumer (DTC) and retail channels within the Solo Stove segment, and, to a lesser extent, within the Chubbies segment.

Gross margins eroded 50 basis points to 60.6 percent on a reported basis, while adjusted gross margins were flat at 61.0 percent.

Operating expenses decreased 6.4 percent to $133.9 million. SG&A expenses fell 38.8 percent to $50.1 million. Distribution costs declined in line with lower sales volume, and marketing and other operating expenses declined through disciplined, efficiency-driven spend management.

Restructuring, contract termination, and impairment charges were $75.5 million, compared with $52.5 million. The net loss of $83.2 million compared to a net loss of $58.2 million a year ago. Adjusted net income of $2.3 million was flat versus a year ago.

Adjusted EBITDA of $9.6 million, or 10.2 percent of net sales, improved from $6.3 million, or 4.4 percent of net sales.

Solo Stove segment sales of $72.0 million declined 38.3 percent in the fourth quarter, reflecting lower unit volumes as the company maintained pricing and promotional discipline within the DTC channel and as retail partners worked through excess inventory. Segment EBITDA of $14.6 million increased from $6.1 million, reflecting the implementation of strategic cost-saving initiatives undertaken during 2025.

Chubbies segment sales in the quarter of $19.3 million decreased 20.0 percent, reflecting lower replenishment activity versus the prior year period. DTC sales declined due to reduced website traffic. Segment EBITDA of $0.9 million declined from $3.3 million a year ago.

Full-Year Results
Net sales decreased to $316.6 million, down 30.4 percent.

Gross margins grew to 59.4 percent of sales compared to 57.3 percent in the prior year. Adjusted gross margin, which primarily excludes the impact of the inventory write-down in the prior year, was 59.8 percent, compared to 61.7 percent in the prior year.

Operating expenses decreased by 30.7 percent to $301.6 million. SG&A expenses decreased 32.8 percent, primarily due to lower sales volume and disciplined, efficiency-driven spend management.

Net loss of $145.4 million improved from a net loss of $180.2 million in the prior year. Restructuring, contract termination, and impairment charges were $93.5 million compared to $136.1 million.

Adjusted net loss was $14.7 million, compared to adjusted net income of $11.4 million. Adjusted EBITDA of $18.5 million, or 5.8 percent of net sales, declined from $32.6 million, or 7.2 percent of net sales.

Solo Stove’s sales were down 43.8 percent to $167.2 million, reflecting lower unit volumes as the company maintained pricing and promotional discipline in the DTC channel and as retail partners worked through excess inventory. Segment EBITDA of $17.9 million declined from $45.9 million, or 15.4 percent of net sales, reflecting the implementation of strategic cost-saving initiatives and operating de-leverage associated with lower sales.

Chubbies’ sales increased 9.1 percent to $122.9 million, driven by growth in retail strategic partnerships and solid demand in the DTC sales channel.

Segment EBITDA of $22.4 million, or 18.2 percent of net sales, improved from $15.8 million, or 14.0 percent of net sales, due to the net sales growth and more efficient marketing spend as the strategic retail network is increasingly leveraged.

Image courtesy Solo Stove