ODD Stock Forecast & Price Target

ODDITY Tech Ltd has demonstrated strong financial performance with online direct-to-consumer sales increasing by 27.5% year-over-year to $140.5 million, while total revenue rose by 24.3% to $147.9 million, surpassing consensus estimates. The company achieved robust gross margins of 71.6%, an increase of 2.4% year-over-year, and raised its gross margin guidance for FY25 to approximately 72.5%. Additionally, management has provided an updated adjusted diluted EPS guidance of $2.10 - $2.12, reflecting increased confidence in the company's financial trajectory as they also raised FY25 revenue and adjusted EBITDA outlooks.

ODDITY Tech Ltd reported a significant decline in total revenue, falling 38.7% quarter-over-quarter to $147.9 million, which was slightly above consensus expectations but indicates potential challenges in sales momentum. The adjusted EBITDA margin also showed a year-over-year decrease of 6.4%, reflecting growing pressures in profitability despite being better than internal estimates. The broader competitive landscape, characterized by intense beauty eCommerce competition and limitations from existing marketing strategies, raises concerns about the sustainability of ODDITY's growth and financial performance.