Oddity Tech, the parent company of Il Makiage and Spoiled Child, reported robust first-quarter results and raised its guidance for fiscal 2025, outperforming broader market concerns over rising tariffs. The beauty and tech retailer announced stronger-than-expected earnings and revenue, stating it has no current plans to raise prices despite new levies. Instead, the company cited internal cost efficiencies and minimal exposure to tariff-heavy regions as key reasons for its confidence.
Oddity reported adjusted earnings per share of 69 cents, surpassing analysts’ expectations of 62 cents. Revenue reached $268 million, a 27% increase from $212 million the previous year, and also exceeded forecasts of $261 million. Net income for the quarter was $37.8 million, or 63 cents per share, compared to $33 million, or 53 cents per share, a year ago. Excluding stock-based compensation and other one-time items, the company’s adjusted earnings remained strong.
For the full fiscal year, Oddity now expects revenue to fall between $790 million and $798 million, compared to its earlier range of $776 million to $785 million. Analysts had projected $784 million. The company also raised its adjusted earnings per share forecast to a range of $1.99 to $2.04, up from the previous $1.94 to $1.98. Gross margin expectations improved to 71% from 70%, and adjusted EBITDA is now projected to be between $157 million and $161 million.
Oddity attributes its strong performance to a resilient business model, primarily its direct-to-consumer structure, which limits intermediary costs and allows for higher margins. It also highlighted that its primary supply sources are in Europe, reducing its vulnerability to U.S.-China tariff escalations. The company noted that its exposure to potentially inflationary tariffs is limited and said it has multiple strategies to absorb potential cost increases without resorting to price hikes.
For the current quarter, Oddity expects revenue between $235 million and $239 million, exceeding the consensus estimate of $232 million. Adjusted earnings are projected to be between 85 and 89 cents per share, above the 84 cents expected.
Despite a challenging environment for many retailers, Oddity continues to stand out for its profitability and growth. Its stock has risen 11% year-to-date, outpacing the broader market, supported by solid fundamentals and limited exposure to tariff-sensitive regions.
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