This AI-enabled retailer sees a gross margin of 68.5%

Oddity Tech Ltd (NASDAQ: ODD) gained nearly 10% in extended hours after reporting its preliminary results for the third quarter.

Oddity now sees even stronger growth in revenue

The beauty and wellness retailer that taps on artificial intelligence to make products expects its Spoiled Child and Il Makiage brands to drive a 29% to 31% sales growth in Q3.

That’s well above 20.5% that it had guided for earlier.

But the Tel Aviv-headquartered that had $68.9 million in revenue in the same quarter last year did not reveal the exact sales figure in its preliminary results. According to Lindsay Drucker Mann – its Chief Financial Officer:

We have these machine learning models at every part of user journey. They’re responsible for high satisfaction, which leads to great repeat rates, it drives our strong profitability ad high growth.

Oddity says revenue is up 58% year-to-date

More importantly, Oddity now forecasts its gross margin to sit comfortably at a whopping 68.5% – even better than 67.5% it was expecting so far.

Year-to-date, the Nasdaq-listed retail company has delivered a 58% annualised growth in sales on at least $89 million of adjusted EBITDA, as per the press release on Monday.

Oddity also said today that its adjusted EBITDA margin is now expected to come in at the top end of its previous rage for the third quarter. Its CFO Drucker Mann added:

Our repeat revenues were stronger than we had expected and importantly, those sales were of very high quality. So, they came with very strong profitability.