Solo Brands continues to work on their turnaround while dealing with the tough sales environment. Of their operating segments, Solo Stove is being hit the hardest.

Net sales of $32.7 million decreased 14.7%, reflecting lower unit volumes driven by the Company’s continued focus on pricing and promotional discipline within the DTC channel, as well as softness in the retail channel as we rebuild our retail partnerships.

Solo Brands Q2 2026 Earning Press Release

Their revenue challenges were mainly confined to June, with them noting that April and May were good months. Unfortunately, they said the softness continued through July.

It’s difficult to turnaround a business as sales keep declining. I think it’s smart to not continually discounting on their website, like they did in the past. It helps establish better retail relationships and should translate to better margin for DTC. There’s a period of building that though where you’re just selling less units that’s tough to get through.

It would be helpful if they got into unit sales and ASP at the brand on their call though. I don’t fully understand the story they’re telling against the numbers I can see in their financial disclosures.

At Solo Stove, their DTC revenue declined from $28.6 million in Q2 2025 to $25.8 million in Q2 2026 but their mix of DTC to retail increased 390 bps. You’d think with less promotion at DTC, they’d have a margin pick-up. It doesn’t flow through though.

Their margin in Q2 2026 is 40 bps lower at 63.7% than the same quarter last year, and it’s being propped up by a soft comp from tariffs last year compared to refunds recognized this year. They must be having some trade down to cheaper products causing mix problems from a margin standpoint.

New Products

New products driving revenue has been a staple at Solo Stove, and it’s something they lagged on when they got into financial trouble. They’ve been fixing that over the past year and a half, and it’s been successful for them.

At Stove, new product launches accounted for nearly half of our DTC channel sales for the second quarter, with Solo Stove’s Summit and Steelfire lines winning numerous awards, including Forbes Vetted Best Product Award and Men’s Journal’s Best Outdoor Griddle Overall recognition. We believe these achievements demonstrate strong customer adoption and reinforce innovation as an important component of future growth. While we are not satisfied with top-line sales performance, we continue to make meaningful progress to advance our profitability and cash generation priorities.

John Larson, President and CEO of Solo Brands

Solo Stove will be having some new product launches this fall during their key selling season. I’m excited to see the new products and the revenue growth from it.

Looking ahead to the fall and the holiday season, our product pipeline remains robust. We are introducing new innovative products across the portfolio, including the Infinity Flame Premium Propane Fire Pit with a new upscale design. We are also launching an indoor chiminea fireplace that creates an inviting atmosphere in any room in the house. An exciting new accessory in our stove lineup is our new Chiminea Topper that turns our very popular Summit 19.5 and Bonfire into a stylish outdoor fireplace with increased warmth.

John Larson, President and CEO of Solo Brands

I’m guessing at what the new products will be, but most of them seem pretty transparent from the descriptions. The Infinity Flame is a propane fire pit that Solo Stove released last fall that has a unique flame pattern. It sounds like they’ll be creating a more upscale version of it.

The indoor chiminea will likely be similar to the TerraFlame version that they sell. Solo Stove divested the TerraFlame assets but they retained exclusive distribution of the products.

You can visualize what a chiminea topper would look like for a Solo Stove fire pit. I’m guessing it will be similar to a patent that I wrote about before but calling it a “chiminea” makes me think the shape will be a little different than the drawing in the patent.

International Sales

International is still relatively small in dollars for Solo Brands, but it’s growing quickly. It’s definitely something to watch for and a strategy that other outdoor companies have had success with.

We’ve been pushing for the last year. Obviously strong results in the second quarter. I would say that will be a little lumpy as we get key new partners in international markets. India was a very favorable partner that we had for Chubbies in Q2 of this year that led to a lot of our increase year-over-year.

On the positive side, we have brought in experts on both the distribution side and the retail channel side internationally for markets in Europe, the U.K., and Asia for Solo Stove. Re-upped our efforts in Asia for the Watersports division and are looking to South America in addition to what we’ve done in India. And ultimately, we’re already talking to some partners in Europe right now. On the positive front, we did sign 3 contracts with those key distributors we’ve been working on and so are moving into market fairly aggressively. It will take some time, but we really view this as upside or blue ocean for us.

As it relates to gross margin and profitability, the beauty of some of those markets is we don’t have the same tariff issues we do have in our U.S. domestic market. So from a gross margin perspective, it’s very favorable when we ship directly into those markets and that to a large degree can offset the expense you have of using distribution partners to move quickly in those markets.

Of note, the key partner we’ve signed up in Europe and the U.K. and some other ancillary markets, it’s Hectic. And they’ve distributed a number of brands internationally. Most notably, they worked with YETI for an extended amount of time. And so really understand the markets that we’re moving into, the categories, the right partners, and we’re excited about them accelerating our growth in those markets.

John Larson, President and CEO of Solo Brands