Much like Weber and Traeger, Solo Brands recently released earnings for the quarter ended June 2022. The Solo Stove maker guided down their financial performance, but showed growth year over year, aided by acquisitions. Unlike other outdoor cooking companies, what was refreshing on Solo Brand’s call is they focused on how not normal the pandemic was for business.
The reality is that over the last couple of years, customer acquisition costs have been artificially low. What companies were planning and thought that they could spend in order to acquire a new customer for the last two years, has kind of created an environment where we’ve all kind of misunderstood how that’s going to flow through when you get into a normalized environment, like we feel like we’re in now, where you really understand better what it’s going to cost to acquire a new customer.
