Oddity Tech Shares Jump 15% After Beating Q1 Estimates and Raising 2025 Outlook.

Oddity Tech, the parent company of beauty brands Il Makiage and Spoiled Child, reported strong fiscal first-quarter results on Tuesday, outpacing Wall Street estimates and lifting its outlook for the rest of 2025 — even as the broader retail sector braces for tariff-related headwinds.

The direct-to-consumer beauty tech company posted adjusted earnings of 69 cents per share, ahead of the expected 62 cents, and reported revenue of $268 million, beating analyst forecasts of $261 million, according to LSEG.

Net income for the quarter was $37.8 million, or 63 cents per share, compared to $33 million, or 53 cents per share, in the same period last year. Sales rose 27% year-over-year.

Full-Year Forecast Raised

Following the strong start to the year, Oddity revised its fiscal 2025 projections upward:

• Revenue: Now expected between $790M–$798M (up from $776M–$785M)

• Adjusted EPS: Forecasted between $1.99–$2.04 (up from $1.94–$1.98)

• Gross Margin: Projected to hit 71%, up from 70%

• Adjusted EBITDA: Now expected between $157M–$161M, compared to the prior range of $155M–$158M

For the current quarter, Oddity expects revenue between $235 million and $239 million, and adjusted earnings between 85 cents and 89 cents per share, both ahead of analysts' estimates.

Tariff Threat Seen as Contained

Oddity executives acknowledged concerns around new U.S. tariffs, especially after President Donald Trump’s announcement of reciprocal tariffs targeting several countries. However, the company emphasized that most of its sourcing comes from Europe, not China, and that the impact will be limited.

“We don’t have an outsized exposure to China,” said CFO Lindsay Drucker Mann. “Our biggest market where we buy from is Europe.”

Oddity said it doesn’t plan to raise prices in response to tariffs and believes it has enough internal cost-saving measures to absorb any financial impact. The company described potential headwinds as “manageable and largely offset by cost efficiencies.”

A Bright Spot in Retail

Oddity’s performance stands out in a retail environment clouded by inflation, shifting consumer behavior, and trade uncertainties. While many online brands struggle to reach profitability, Oddity continues to benefit from its direct-to-consumer model, which gives it better control over margins and pricing.

The company’s strong positioning in the beauty sector, seen as more resilient during economic slowdowns, is another factor driving investor confidence.

Oddity’s stock is now up 11% year-to-date, outperforming the S&P 500, which has declined 5.4% over the same period.