ODD Stock Forecast & Price Target

ODDITY Tech Ltd reported robust online Direct-To-Consumer sales of $140.5 million, representing a 27.5% year-over-year increase, and total revenue reached $147.9 million, a 24.3% rise, exceeding consensus expectations. The company's gross margins improved to 71.6%, up 2.4% year-over-year and significantly above initial estimates, while FY25 gross margin guidance was updated to approximately 72.5%. Additionally, management raised its adjusted diluted EPS guidance to $2.10 - $2.12, highlighting the company's strong financial performance and optimism for future growth in revenue and adjusted EBITDA.

The financial performance of ODDITY Tech shows a concerning decline, with total revenue decreasing by 38.7% quarter-over-quarter to $147.9 million, falling short of market consensus. Although the adjusted EBITDA margin was slightly better than estimated at 19.5%, it still represented a year-over-year decline of 6.4%, indicating operational challenges. The bearish outlook is compounded by intensified competition in the beauty sector, potential limitations in market size for high-priced products, and challenges in leveraging social media for marketing due to evolving digital privacy regulations.