Online cosmetics provider Oddity Tech soared to an all-time high Wednesday after first-quarter sales topped expectations and management raised its outlook. It also gave reassuring comments on tariff risks.
Earnings rose 13% to 69 cents a share while sales jumped 27% to $268 million in a report issued late Tuesday. EPS met views while sales were above the FactSet consensus estimate of $260.6 million.
The company now expects full-year net sales of $790 million to $798 million, which would be an increase of 22% to 23% year over year. It forecast gross margin of about 71% and adjusted EPS of $1.99 to $2.04. It had earlier forecast sales of $776 million-$785 million and EPS of $1.94-$1.98.
For the current quarter, it forecast sales of between $235 million and $239 million, gross margin of 70.5% and earnings of 85 to 89 cents a share.
The company said tariff headwinds "are expected to be manageable and largely offset by cost efficiencies." Oddity expects those risks will also be manageable in 2026.
Oddity Stock Leads Industry
The company offers its more than 60 million users an artificial intelligence platform to shop and buy customized cosmetics. The parent company of Il Makiage and SpoiledChild brands uses an algorithm to help match users to ideal products.
The beauty company is headquartered in New York. It has an R&D center in Tel Aviv, Israel, and a lab in Boston.
With its online-only strategy, Oddity has emerged as the leader in the cosmetics and personal care industry group. The stock has a Composite Rating of 97, the highest of 43 stocks in the group. Its EPS Rating (98) also is the best in the industry, according to IBD MarketSurge. The three-year earnings growth rate is 109% and the three-year sales growth rate is 40%, according to IBD Stock Checkup.
Oddity Stock Breaks Out
Oddity stock soared 27% in afternoon trading, what would be the best day in the stock's history. Wednesday's rally extended to seven days a win streak in which it has added more than 40%. The company went public in July 2023 at 35 a share.
Shares are up 42% year to date and cleared a previous high of 56 made on Aug. 4, 2023. More importantly, Oddity stock broke out of an irregular pattern with a 51 buy point and topped a trendline entry around 47.
The stock is now extended from the 5% buy range, so investor will need to wait for another chart pattern to consider buying shares.
Oddity stock has a 21-day average true range (ATR) of 7.32%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs. There are exceptions, but given current market conditions, IBD generally suggests investors keep most of their portfolio focused on stocks with ATRs at or below 6%.
