Scaling Oddity to a $10B LVMH exit

🧠 The Takeaways

Today we’re jumping on Oddity’s insane growth + taking this biz to $10B.

1. Launching more and more AI-driven Beauty brands

2. Finally launch into Retail at $650m in Topline

3. Acquire a Beauty/Makeup App to harvest more consumer data

3 ways I actually use AI every day.

LBAB! Community - 3 Ways we’re winning with AI.

Here are 3 ways we’re using AI at Coco to save headcount and increase output.

1) Ship requirements at “founder speed”
I rewired how we write user stories.

• I outline the experience we want → ChatGPT drafts acceptance criteria, UX/UI specs, edge cases, and dev notes.

• I feed that into Lovable, which generates the front-end UI/flows for prototyping.

• Devs get a clickable experience + crystal-clear specs instead of a vague doc.

Result: order-of-magnitude faster and way higher quality.

I used to grind for hours to get to “meh.” Now I produce more, better stories in a fraction of the time.

2) Turn revenue data into weekly decisions
Every week, AI ingests revenue across all customers and flags what matters:

• Marketing efficiency, promo lift, win-backs, cohort health

• Outreach targets and content angles that actually move numbers.

And insights are 10x better than anything we’ve used. The team shows up to standups ready to make decisions.

3) Daily CEO briefings for everyone
At 5:00 every morning, I get a briefing to my phone:

• Today’s calendar + context

• Priority emails with pre-written drafts that sound like me

• Company metrics, blockers, and a quick news pulse

Takes minutes + no need for a $3k–$5k/month EA to do it. 

The unlock: roll this out to the whole team so everyone operates like a CEO with their own daily brief.

How to copy/paste this into your org:

• Treat AI like a teammate: scope the job, define the handoff, measure the output.

• Feed it clean data and tight prompts. Add feedback loops so quality compounds.

• Productize the wins (templates, checklists, automations) so it scales beyond you.

AI is a force multiplier.

IF your inputs, scope, and handoffs are right.

Let’s Examine This Biz

Note: As always, none of what follows is legal, tax, investing, financial, or any other sort of advice. And I was never here.

Oddity (the AI Beauty portfolio of Il Makiage and SpoiledChild) has come screaming into the public markets, putting up numbers and meaningful growth. It’s time to ride this up to the moooooon.

• Share price: $60.21

• Market Cap: $3.4B

• L5 Performance: +14%

• P/E Ratio: 33x

Oddity brought the nerds to the Sephora and are scaling beautifully.

Financial Summary

2024 Financial Statements (YoY Comparison)

Sales: $647m (+27%) 👍
Gross Profits: $468m (31%) 🤤
OPEX: $352.7m (+24%) 👍

Net Income: $101m (+74%) 😍🤤

Link to Company’s earnings

TLDR Analysis: Only getting better with Scale

• Rev growth (+27%) outpacing OPEX growth (+24%) 🏇

• Gross Margins accelerating from 67% (2022) -> 72% 🤤

• Net Income at $100m w/ 15% NI Margin 😍🤤😍🤤😍🤤

I really don’t like that they don’t break out Marketing, Fulfillment, Tech or R&D in their report. 

But with results like these…

Let’s Scale This Biz

Here are my 3 moves to keep this momentum going to a $10B cap.

1) Go all in on launching new brands.

The clarity of vision on this slide is Chef’s kiss.

It’s telling you: 

• What they’re focusing on 

• Where they’re investing

• How they’ll get it done

But the one major piece I don’t agree with is partner brands—whether that’s Acquisitions or JVs, those partnerships are going to be so hard to culturally pull off.

Super Techy bizs don’t thrive in the messy realm of Celebrities/Influencers, the subjective nature of partnerships, and navigating competing desires.

It’s slower, harder, more painful work, but what will make Oddity Tech a genre-defining portfolio is what they do best. Building. 

That’s their skill set. 

When you’ve built an incredible machine, it’s tempting to apply it everywhere. But especially in AI, the more focused its focus and expected deliverables are, the more productive it will be.

Takeaway: Don’t chase shiny objects. Take the 20 yr path.

2) Get into Sephora

Scaling to $647m with 98% from DTC is incredibly impressive, but it’s time this brand takes their greatest hits and gets them into more hands.

You can’t claim your TAM is $600B when you aren’t selling in IRL retail, where ~$400B of those transactions flow.

Sephora is the natural fit: a Premium Beauty Retailer owned by LVMH where the “IT” brands are sold.

The Retail experience will match Il Makiage + SpoiledChild’s premium branding. It gives Sephora more hot products to sell in store and propels both brands together.

This will be the start of a highly selective but meaningful expansion into Retail. 

Oddity won’t get to $2B in sales on DTC alone.

Takeaway: 80% of sales are still IRL. Find the best (and only the best) partners.

3)  Acquire more Data sources

AI is only as good as its data. 

That means both in quality and volume. Oddity has tapped into huge amounts of data, but they will soon run out of new data to train their AI models on.

No new data = each improvement becomes harder and less impressive.

You can’t keep a rocket accelerating without more fuel.

This will be trickier, but we should direct the M&A budget on other sources to train on consumer behavior.

Let’s assume they’re going to all the usual places: Credit cards, Retail data, Credit Bureaus. 

A Social media site would be going too far, but the Beauty Touch up apps would be the perfect data mine to harvest how customers want to alter their appearance with makeup.

Oddity can throw AI at the millions-billions of events these apps capture to identify the looks, adjustments, filters, and skin tones that customers use.

We create new products/brands around those insights. 

Then layer in the fun experiences they’ve built on Ilmakiage.com into the app to create the Beauty Mega app to keep customers constantly entering in their desires on how they want to look in the future—and capture every last bit of that data

Takeaway: Always acquire more data.

Final Thought

I’m Babe Ruthing it now.

LVMH acquires Oddity. 

It might take another decade, but it’s going to happen.

LVMH has a relatively small Beauty division. Fenty by Rihanna and Sephora are the only real notable brands in the portfolio that aren’t fragrance bizs. Both are recent acquisitions.

Oddity is the perfect blend of premium luxury branding + huge margins, and they bring a fresh skill set LVMH can roll across the entire portfolio.

Could you imagine if you pushed all of Sephora’s data into Oddity’s AI models?

LVMH will continue to diversify away from Spirit + Luggage biz lines, and Beauty will take a more meaningful portion of their portfolio. 

They’ll definitely acquire more celebrity/influencer brands, but having AI define the future of Luxury is a moat they won’t want to lose.

Also, LVMH (through L Catterton, the massive Consumer PE firm that LVMH backs) was the investor that helped Oddity Tech scale to become public, investing $33m early on.

They saw an insane 15x return before selling, but I’m sure they wish they held onto it.