Martin with Three Part Advisors and welcome to the Ideas Conference. Next up, we've got Solo Brands, and they are an exciting premium lifestyle brand business with kind of that outdoor ethos as the biggest focus. Real exciting story, doing a lot of investor relations starting now with these guys. Today, presenting on behalf of the company is Chris Metz, the CEO, and Laura Coffey, the CFO. I'm going to hand it over to Chris.
Thank you, Sandy, and good afternoon, everyone. Excited to be here at this conference and share with you our story on Solo Brands and a little bit of the journey in getting into Solo Brands and what attracted us to it. Because Laura and I are both new in 2024 here. I joined the company in January, and Laura was one of my first new hires in February, so with that as a backdrop, I spent the first 13 years of my career at Black & Decker back in the early 1990s. I've been doing this for a little while and rose from the bottom ranks of Assistant Product Manager to President of Black & Decker. For the last six years, I ran one of the large operating groups, and we introduced the DeWalt line of power tools.
So, the lens in which I view businesses is very much through the Solo Brands lens, which is how you build highly innovative, unique consumer products and wrap a great brand around them in an experiential way. I then went from a growth-oriented company to the world's preeminent turnaround private equity shop, and I got to learn how far you can stretch a dollar. We took Q4 and Q3 earnings companies and moved them to Q2 and Q1 quartile and learned a lot about the turnaround industry. So, then I spent the better part of the past decade running two other public companies, Arctic Cat and Vista Outdoor, both of which were turnaround stories and got great, great returns. Vista, we grew from $4.50 share price up to $50 and split the company. And that split should culminate the end of this December, so this year.
That's a little bit of my background. Laura can share a little bit of her background when she comes up to talk to you. But like myself, she grew up in the consumer products industry, and both of us bring that type of relevant experience to the journey we're on here. So, speaking of Solo Brands, Solo Brands is made up of four high-end consumer brands, the lead brand being Solo Stove, which is our biggest brand. Chubbies is a lifestyle apparel brand. And then we got two water sports brands called Oru and Isle. We're traded on the New York Stock Exchange. We went public in 2021, and our revenues are just under $500 million. We're about 9%-10% EBITDA margin business and just under three times leverage. So, why invest in Solo Brands?
I always think it's important to understand what's the investor narrative and why should I be considering solo brands. First, is that we are the clear market share leader in the markets we participate in. We're the number one share leader in fire pits. We're a close second in pizza ovens, and just literally got into it two and a half years ago. We're the clear leader in men's swimwear with Chubbies, passing a lot of pretty household brand names like Vineyard Vines, and others with our Chubbies brand. We have a passionate consumer base, and as evidenced by our high Net Promoter Score, we've done a lot of consumer research, some of which I'll share with you later, but a very passionate consumer following. We play in premium segments.
So, our products are sold into kind of mid- to high-tier segments of each of our markets, and we focus on high-value consumers. Outdoor products Industry, the average household income is $100,000. Our Chubbies consumer is at $150,000, and our Solo Stove is at $200,000, or about 2x Industry average. Both of our brands are leading brands and our two water sports brands. So, all four brands started off as digitally native companies. So, direct-to-consumer is still about 70% of our business, the other 30% being in brick and mortar. There's clear adjacencies that we can move into with the research that we've done, particularly with the Solo Stove category itself. Cohesive new leadership team, we've got leaders in our business that we've recruited in that I think are, I'll just say it, over hires.
People that have run bigger businesses, people that have come into the Solo Brands story because they see the opportunity to really grow the stock price, and that's why we're here, and there's also opportunities within the four brands that have not been taken advantage of by the former team to realize synergies and create what I would call centers of excellence in the corporate functional areas to be able to distribute out that service that makes us better than any small individual brand by itself because we can leverage that scale, so our vision is to grow into a leading portfolio of lifestyle brands that our communities love, trust, and rave about, but there's a story behind Solo Stove.
Because if I show you that first page, $500 million brand, we're operating at 60% gross margin, 9%-10% EBITDA margin, less than three times leverage, you're like, what's the story? The story is this is a turnaround. I mean, we're transforming this company because our top line has fallen, and that's why I was brought in, so I was brought in the beginning of this year because our direct-to-consumer sales had slowed down. We'd come out of that COVID, like a lot of consumer durables, and hit that COVID hangover, well, what I discovered when I walked in, and I didn't discover it for the first time, I did my due diligence, we hit lightning in a bottle with the Solo Stove, and we didn't continue to perpetuate that product line with a new innovation.
Our direct-to-consumer business slowed down, and we were participating just in that fire pit marketplace largely. We really didn't have a plan for retail, and retail was a huge reason why I came into this business, that the opportunity in retail to expand our offering is real and present, and we're starting to realize that now. The company did lack a clear, cohesive, enterprise-wide strategy. Investors would say, hey, what do you want to be when you grow up? Or how are you going to allocate your capital? Or where are you going to place your bets? We didn't fully understand that until I walked in the door. We hadn't made some of the investments in product development, talent capabilities, systems, and processes, those things that make companies hum.
And so, why I joined the company was this is exactly what my experience is all about, is how do you take brands that have terrific following but have kind of been kind of lost their way. Either they've been underinvested in, they haven't built those scalable systems and processes, and frankly, what I call the opportunity to create a 10x return on the stock price. That's the world that I've come from, and that's why I walked into Solo Brands, because that's what I believe we can do. So, like every turnaround, we're in the phase one, which is this year, where we're cleaning up a lot of the stuff that, and it's not really cleaning up as much as it's building out the capabilities to enable us to return to growth.
And so, this is the first investor outreach we've done, because we spent the first three quarters really kind of stabilizing that business. And you'll see in the fourth quarter here where we're going to start to see a bottoming out. I call it the smile curve, starting a bottoming out of our trends, and you're going to start to see us return to growth, both top line and bottom line next year. We've built a. I should probably take a step back and say, the first thing we did when I walked in is we built a strategic plan. That strategic plan informs everything that we do. It was based in deep, deep consumer research. We went out and talked to over 10,000 consumers. Those consumers told us what they thought about our brands. They told us what they like to do, their hobbies.
They told us everything about themselves. We've got them now broken down into key consumer segments. We've archetyped each one of them. We know exactly who we're going after, and they also informed near adjacencies that we could move into. So, I like to create a picture of a dartboard. If the bull's eye is the center of the center, how do you get one concentric ring or two concentric rings outside of the bull's eye so that what you're developing from a new product standpoint, you've got the permission to move into? It's categories that your retailers would embrace you bringing into. It's categories that when you walk onto our website online, feel natural, and so that's what a lot of our consumer insight research unveiled, and that's what a lot of our strategic plan revolves around, so that will be the return to growth in 2025 and 2026.
Our entire focus is on allocating capital to paying down debt and growing organically. And that's where we're going to be for the next year or so. So, I mentioned phase one is really shoring up the foundation. So, evaluating those portfolios of kind of where do we want to play and make bets in, and importantly, where do we not want to make bets in. We spent a lot of time fixing our systems and baselining our processes. So, I'm a big believer in process management. So, every company has got this, what I call rhythm that they're into. It starts off with building a strategic plan. Out of that strategic plan comes a budget. Out of that budget becomes KPIs that you manage against. And out of that becomes performance management. So, every single month, we sit down and we review the business in the exact same way.
So, each of our four brands, we have a 25-page monthly operating deck. Every single page is the exact same. So, we're looking at the same P&L, the same cuts on the business, and there's no surprises in terms of what we're looking at. That's the way I've always reviewed businesses growing up. And so, that's the cadence in which we have these businesses under. Because all these businesses aren't created equally. We've got some that have bigger opportunities, some that have near-in opportunities that are just larger. So, I allocate my time much like I would capital. I go to the biggest and best opportunities first, but I set the operating model up so that there's no surprises with some of the smaller, further out opportunities. Secondly, investing in our future growth.
So, big believer that you shore up the foundation while you're also putting in those bets and those markers that enable you to turn to growth. So, we've built a multi-year strategic plan, brought in a world-class firm that I've used in my past that really helped us answer all the questions that we may not have necessarily even thought of on our own. So, we've got a very thorough strategic plan that we're just now starting to unveil to the outside world. We've developed a consumer-led innovation pipeline. We've got some really exciting new products, not just in our core categories, but in those near adjacencies, which importantly enables us to dramatically increase our TAM. So, our total addressable market will increase by five, six, seven-fold just next year with some of the new products that we're going to enter into.
And again, when we enter into categories, they're going to feel like they're categories that Solo should be moving into, but they're also categories where we feel like the competitive set is beatable. We feel like we can achieve leadership economics in those categories and continue to perpetuate the margin profile that we have today. Then we get into building what I call the winning performance culture. To me, culture is all about behavioral tendencies. And every day we wake up and tend to behave in a certain way, and that behavior is role modeled. So, the leaders that I've brought in, I brought in a handful of leaders that have worked for me before. Laura's done the exact same thing. When you're in a turnaround, we need to be very decisive. We need to be very quick in the actions we take, all grounded in research and facts.
But you need a following that understands exactly the pace that we're looking to run at. So, then we get into phase two, which is really the beginnings of 2025, where it's a return to growth. And we've made no bones about it. We've got three platforms. We've got Solo Stove, we've got Chubbies, and we've got water sports. But Stove and Chubbies are first among equals. And we're going to double down on those two businesses because we feel like there's just great growth opportunities. We're going to invest. We've got a lot of marketing money that we spend on building our brands, promoting our brands, both online and now in retail. And increasingly, as we go forward, we're going to do it in a very thoughtful way where we fill the whole funnel so that you get awareness down to consideration, down to conversion.
And so, we're not going to put all of our monies down into converting through performance marketing type of metrics. We're going to build the funnel so that we're bringing in new customers at the same time that we're converting customers. So, a much smarter way to spend our marketing dollars. And the great thing about D2C businesses is you can measure everything. So, we know exactly what our traffic is like. We know what our sessions are like. We know what our conversions are like. We know what our return on ad spend is like. So, we can dial up and down the areas that we want to go spend our money in. We really feel like, and it was validated with our research, great opportunity in retail. So, our consumers told us that half of the sales, half of them shop in brick and mortar.
And so, you're going to see us continue to expand into retail. So, we're going to next week announce publicly. We're already starting to ship into their stores today, 130 stores at Bass Pro Cabela's. That'll be our next big retailer we bring on. And we're going to bring on another major retailer in 2025. We're being very selective on the retailers. We've got three retailers that we call A retailers. We're going to treat them differently. We're going to merchandise differently. We're going to detail differently. And then we got a whole swath of B customers, which are going to be great, great customers for us, but we're going to not invest quite as much because we don't feel like we're going to get the return. It's going to feel right.
It's going to be a great representation of our brand, but we're just going to be very careful in terms of how we allocate the capital and how we partner with our retailers so that we have MAP pricing that is adhered to across retail, but we're spending the money where investors should want us to spend the money, where we're going to get the best growth. We're also going to streamline our portfolio to drive efficiencies. There's a lot of opportunity in sharing best practices across our brands. We've got native D2C businesses, but we're running off of different platforms. We're running off of different agencies and partners externally that we partner with. So, as we go forward here, we feel like we can drive synergies amongst our brands.
But in the short term, bringing our two smaller water sports platforms together into one platform is clear synergies that we think we can create. We also bought a small company, TerraFlame, a couple of years ago, about a year and a half ago, and great tuck-in acquisition for Solo Stove. So, if you go on the Solo Stove website, you'll see TerraFlame product. It's kind of an indoor version of Solo Stove, more decorative type of product offering, and it's done extremely well. So, introducing it to the whole cadre and following of Solo Stove has helped this small brand get legs very, very quickly. I talked a little bit about strengthening our capabilities and building a winning culture. This never stops.
We attract great talent, but we need to develop the compensation plan and the learning and development to ensure that we keep great people as we move forward here. Solo Stove. Solo Stove being our biggest brand, part of that strategic plan is pulling together a multi-year growth plan. I told you we archetyped the different consumer segments. The best consumer, biggest consumer segment is what we're calling the outdoor host. Think of somebody that likes to host gatherings in their backyard or likes to invite people to their tailgate. They use a lot of different products in those settings, and that's a glimpse of some of the products that we're going to move into, Solo Stove being one of those products. A pizza oven that we got into two and a half years ago is a perfect example of a near-in adjacency.
Never been in outdoor cooking before. Moved into pizza ovens, and in two and a half years, we've grown to the number two market share leader behind Ooni. We think we can do those types of near-in adjacencies, and the outdoor host through our research has informed us that, hey, you guys have all the permission in the world because you've earned the ability to move into these product categories. I mentioned a little bit about driving omnichannel growth, so this is all about,
hey, how do we not just grow our D2C business? How do we move into marketplaces like an Amazon in a bigger way? And how do we move into retail?
Retail being the big prize for us because we know that's where our consumer likes to shop, and it will be great brand building and great awareness for us, as well as giving us the ability to sell a lot of product. I mentioned expanding the product portfolio. Probably the biggest opportunity for us is how do we expand our TAM and how do we move into more of those pizza oven categories? That's what a lot of our attention has gone into this first year. We've put together, because we didn't have some of the capabilities that we're now building, what I call spike capacity. We've brought in ideation firms to help us with the consumer research we've done. We're going to get into three new categories next year in 2025, in addition to innovating within our fire pit category.
In Solo Stove, we'll introduce more new product in one year than I think we have in the entire company's history. It's going to be well-thought-through, well-researched product that we think will be a real catalyst to return to growth for this business. The next business is Chubbies. I don't know how many people have heard of Chubbies, but Chubbies is one of these brands that is one of the hottest apparel brands in America right now. We bought it three years ago. It was doing around $50 million. It's doing over $100 million now. It's the number one young male apparel brand, predominantly in below-the-waist product. Think of swim trunks, think of shorts. Done a terrific job. It's a founder-led company. The founder, Rainer Castillo, is a wonderful operator.
And so, as I've come in, he's been a great partner to bring in some more discipline, but not. I'm a big believer in bringing in discipline, but not choking off the creativity and the magic of who they were. In my former company, Vista Outdoor, we had 41 brands. So, running four brands, I know how to run portfolio brand-driven companies. And so, Chubbies, I love the potential here. Absolutely love the potential here. So, we're going to be focused on driving and continuing to perpetuate their direct-to-consumer business. That's how their business got started. We're going to continue to expand into retail. Dick's, being their biggest retail customer, has told us they're one of their top three growing brands. And they're encouraging us to expand into near-adjacencies in a different way than Stove, where Stove will get into different product categories.
Within Chubbies, we're going to get into more of the weekender's wardrobe, so their consumer is not the outdoor host. Their consumer is the weekender, and so we're going to start to outfit more of that wardrobe. I mean, Dick's has told us that their number one selling product is a polo shirt. We don't even really sell any polo shirts online, so great learning for us. We just introduced a collaboration we're doing with the NFL, so we got the NFL license, so we just launched with 12 teams. We took a first order of those 12 teams, and we sold out in 48 hours. We put in a second order, and we're just about sold out, so we're going to put in a third order, and the number one selling product is a polo shirt.
In the first three weeks of launching it, we sold 4,000 polo shirts to those 12 teams. It's incredible. We're learning things as we get into these new categories that we think we can do better online. As we start to look out, we know we can expand our product portfolio. We've got our customers asking us to move into more adjacent categories outside of just that core young male weekender product. First things first. The other benefit about being a native DTC is we can do tests like that with the NFL. Rather than bringing in and taking a lot of risk of millions of dollars of product, we lean in a chunk at a time. Once it starts to prove itself, we can continue to expand it out. I mentioned streamlining our portfolio.
I talked a little bit about the new water sports platform. We've taken our kayak and stand-up paddleboard business to very good businesses that people have asked us, "Hey, Chris, you know why wouldn't you sell these businesses?" I said, "Well, just because in my first 10 or 11 months on the job, I think there's opportunities to create shareholder value and then potentially give us the optionality in a few years if we don't feel like we can continue to perpetuate that growth." But like an example, we just signed a license with Tommy Bahama. We're going to grow our Isle stand-up paddleboard business dramatically with one key customer, Costco. We're going to launch it into their stores around middle of December, and we're going to continue to roll it out into 2025.
Great opportunities to not only wring out some efficiencies, but help this business in a smart way continue to grow in a pretty crowded category, but leveraging our relationships with customers to move into retail. Solo Stove brand expansion. I mentioned the power of the brand. This will give you an indication. We did a double-blind net promoter study. What we found out with Solo Stove was, so net promoter score, you take the raving fans, you take the detractors, and you take the middle, you throw out the middle, and you average out the detractors and the ravers. We came out at a score of 75 on a scale of one to 100. To give you an indication, 75 is top 1%ile of all outdoor products companies. This is a Yeti-like brand.
And so, what that does then is it gives us the permission to move into adjacent categories with a Solo brand. So, we think there's opportunities to get into the cooling category. So, think about Solo Stove in warmer months. So, think about portable outdoor air conditioning. So, we're going to come out with a product that looks like a Yeti cooler. You open up the lid, and inside of it is a heat exchanger that converts water and mist into cool air. And we can put misters on it that can mist air as well. We've gotten tremendous feedback from consumers on this product. So, think of this showing up in the back of pickup trucks. Think of it showing up in backyards. Think of it showing up on job sites. Think of it showing up anywhere where you're too warm. Could show up on campsites, right?
And it also acts as a cooler as well. So, we think we can perpetuate this whole cooling category under the Solo umbrella. So, pretty neat opportunity for us. And that's just one example of a category that we think we can reimagine under the Solo brand. So, when you think about Solo Brands together, this is a pictorial of outdoor goods platform, soft goods apparel platform with all the enabling functions underneath that we think some of them could turn into Centers of Excellence where we can really lean in to help our brands. Others could just be supporting functions. Like today, we have consolidated our distribution, so we'll distribute to the same customers for all of our brands. We can do Direct-to-Consumer in a much more efficient manner in a single distribution center. So, that's what we do right now.
We distribute out of an East Coast, semi-West Coast, and a Texas facility. We can cover everywhere in the country within 48 hours. Summary of Solo Brands on a page is a clear set of strengths across all of our portfolio of brands. We've got, and what I love is we've started off as a native D2C brand. We understand how to sell and communicate with consumers directly. We get to control our own destiny as we're starting now to move into retail channels of distribution, but loyal, raving, high-value customers, premium segments that we're participating in. Our brand is, again, highly differentiated in terms of the channels of distribution we can move into, and we like the position that we're in.
We're building off of this to move into new adjacencies that are near to us, and we're going to leverage those centers of excellence that I mentioned before. So, when you think about the short term, though, it's doubling down on our two core brands, Solo Stove and Chubbies. It's about consolidating that water sports platform so that we can leverage some synergies and we can get some growth. It's about expanding that retail offering and getting into both new doors and expanding into existing doors of customers we're in today. And it's about building that pipeline internally that allows us to continue to perpetuate that growth over a multi-year journey. I would be remiss if I didn't talk about the talent we've brought in. So, since I've walked in, we've brought in a ton of what I call been there, done that talent.
So, when you walk into a turnaround, one of the most important things that I found out is bringing people in, again, that understand the culture, but bringing people in that understand how things work and how things operate in the environment that we're in. So, we love young, high-potential talent, but we also wanted to augment it with people that have been there, done that before. And that's what you see us doing right now. So, lots of opportunity to turn this company into something great. I love the starting bones that we have to build this company. And we're at the right time now where we're really starting to talk to investors for the very first time as we've done a lot of the heavy lifting over the first three quarters here.
So, with that, I'm going to turn it over to Laura, who will introduce herself and talk to you a little bit about Q3 and Q4.
Yeah, good to see everybody this afternoon. My background is I've been in retail over 25 years. Prior to that, I was in public accounting. But I took a unique turn when I was at Pier 1. I was at Pier 1 Imports for 23 years. And about 13 of those years, I was in the finance team. And then the remaining, I actually launched and started the direct-to-consumer business when Pier 1 launched pier1.com.
So, when I came and found this digitally native brand, it was a great opportunity for me to really pull from my operational background as well as go into something that was a really fun brand that we knew had a lot of excitement around it and a lot of potential. So, with that, we'll just go ahead and quickly cover the financials that are out there. So, as Chris told you, we were in our turnaround. We're in this turnaround phase in this transformation. So, our expectations that we had for the third quarter pretty much came in line with what we were thinking. We knew that we were going to have a little softness on the top side as we were trying to make sure we were stabilizing our direct-to-consumer business.
The exciting piece that we did have in the quarter was our retail partners and the continued growth with those partners. We continue to see new companies come to the table, as Chris spoke about, with Dick's Sporting Goods. Not Dick's Sporting Goods, sorry about that. Bass Pro Shops and Cabela's, that's our new test launch. But Dick's Sporting Goods comes to the table and asks us to get into new product categories. So, we're really proud of what we're doing in the retail business. We've just got to get back to getting the stabilization of our direct-to-consumer business. The really positive thing about this business model is its strong, healthy margins, which gives us a lot of operating leverage throughout the P&L. So, you can see here, our EBITDA was down slightly for the third quarter.
That was the direct result, and we knew some of the investments that we had to make, and we've made those investments. For 2025, we're turning our operating model on its head, pulling back on some of that performance marketing as we expand in our retail channels and pushing forward with the current operating expenses that we have now established. Importantly, the capital allocation, Chris mentioned it earlier as well. We are focused on growing organically and next year paying off debt. We can see we've made some progress in our debt over the past year, but we'll make much more progress next year when we don't have to correct some of the things that were kind of one-time charges. We had a lot of things that basically we had to clean up. We had to get rid of some ineffective contracts.
We had to buy our way out of some of them. We had a lot of our strategic partners come in. Next year's the real year to focus on capital allocation with paying down our debt. We recently announced a couple of weeks ago, and we reaffirmed our full-year guidance outlook with total revenues between $470-$490 million and our EBITDA margins of 9-10%. We feel really confident in what we've put on the table. If you look at the fourth quarter, which we don't give quarterly guidance, it's deductive because we have one quarter to go, you'll see that we plan basically for top-line sales to be roughly flat, give or take, with some potential upside, but a much stronger EBITDA going forward in Q4 than what we had a year ago.
So, to wrap things up, I mean, we are really excited about the plan we've laid out for the year. We know we're in a turnaround. We faced a lot of headwinds this year, but we're really pleased with the progress that we've made. It's been a long road, but we know that we've put the right strategic plan in place, and we're going to execute to that and looking really forward to what 2025, has to share with us. So, with that. Questions? Questions for Chris or myself? Yes?
I was curious about how you feel about the direct-to-consumer versus retail. Is one superior to the other? What's the right mix? Are you where you want to be?
Yeah, so ultimately, we want to be where the consumer shops. And so, our research has told us that half the consumers want to buy in brick and mortar. We have to be in both. We're agnostic. Your gross margins are going to be higher in direct-to-consumer, right? Right now, our gross margins are about 61%. When you sell into retail, obviously, they got to take their markup. You're at parity, so you lose that gross margin, but you pick it up in less marketing spend. We spend a lot of performance marketing. Think of the search ads we run with Google and Meta and SEO optimization. It nets out to neutral on the EBITDA line. For us, we've proven it. I mean, for the first time, we've got P&Ls by customer, by channel, and we know that for us, it doesn't really matter. We're excited to grow. Is that going to answer you?
It's all with the direct-to-consumer and retail though that you want to price lower than where you need to target or what we're selling on. I think it'll come back to what you're doing.
No, no, no. So, importantly, you have to understand retail. So, having been in it for, gosh, 30 plus years, you have to have price parity. You'll never see us compete online. The other thing we're going to do is we're going to develop channel-specific product offerings. The great thing about the business we're in, we can bundle our products to offer very unique offerings. So, for instance, I was in the facility yesterday. We're building out a Costco-only SKU. We've taken one of our pizza ovens, and we're going to put a spatula in it. We're going to put a peel in it, and we're going to put a thermometer in it. Their own SKU.
There's no way a customer could go shop that at another channel. And so, we're going to avoid any type of channel conflict. Now, on our base product, we are going to have MAP pricing. And if anybody sells below that MAP pricing, we turn them off. Yes? Jeremy, I mean, there's a lot of folks who haul more stuff. Mountain bikes, I bought mountain bikes as a man. I bought another one. Just so this falls into that category for me. So, is there any analysis of how overbought it was and where we are in the cycle? I mean, this is sort of a headwind for you in my opinion in a way. So, work with that. Sure, yeah. Conclusions or thoughts on where we are. And I came from the biggest outdoor products company, Vista Outdoor. So, again, we have 41 brands. Yeah.
Here's invariably what happens in my experience is if you don't bring newness and innovation to the category, your hangover is going to be a long time. If you bring newness and innovation and a reason for people to buy, your hangover is going to be a lot shorter. There's no mystery why companies like Yeti, who are selling coolers and tumblers, haven't seen a falloff in their sales. As we innovate, you're going to see people come back to our brand. And innovation also brings a halo effect. People will then go out and buy more of our same products. But even within fire pits, we introduced fire pits. We invented the category with a smokeless fire pit. And we've seen that addressable market start to shrink a little bit because we're the market.
And so, we have to innovate, and that's what you're going to see in 2025. I think the hangover and the excuses we're going to make are going to be over. So, like Laura's showing you in Q3, I mean, right now, we talk to investors. We talk about, "Hey, there's no question that consumers are pinched with high-discretionary, high-ticket price items. Our AOV on a Solo Stove is $300." But the real reason is not that the consumer is pinched. The real reason is because we don't have anything new. We got to bring innovation out, right? So, if somebody comes to me with a Callaway driver that can hit 10 yards further, I'm going to replace my driver, right? I don't need a new driver, but I want that new driver. And so, we need to create that want. And that's the path that we're on right now.
Yes? Do you have an international strategy, or are you only focused on national sales and sort of dealing?
Yeah, so international is a big opportunity. So, when I was at Black & Decker, I ran international living in Germany. I ran all of Europe, Middle East, and Africa. Big opportunity for us. But first things first. So, what we're going to do is we're going to establish a direct-to-consumer presence in a bigger way in Europe. We're going to move into one country first, then a second country, and we're going to partner with a distributor so that we can continue to build a viable model. And so, we're going to get into it in a slow but sure way, more conservative way. But it's a potential opportunity for us in a big way, but not in the near term.
Plenty of other opportunities we think we can invest in for faster returns. Thank you. Okay. Thanks, y'all.