SmileDirectClub Inc (NASDAQ:SDC) is trading significantly higher Tuesday after the company announced strategic actions to increase profitability.
After evaluating SmileDirectClub's business and the continuing macroeconomic factors impacting consumers, the company decided to focus on supporting the key growth initiatives that will produce the highest return on investment.
The initiatives include the expansion of the company's professional channel, the SmileDirectClub Partner Network, innovations to its aligner and oral care products and SmileShop growth in markets with strong consumer demand.
The company also announced that it will pause expansion into new international markets while the global economy recovers from pandemic and macroeconomic pressures. In connection with the operational changes, SmileDriectClub suspended operations in Mexico, Spain, Germany, Netherlands, Austria, Hong Kong, Singapore and New Zealand.
"Though these decisions are difficult and will impact many of our team members who have worked tirelessly with us to deliver on that mission, these changes are the right thing to do at this time for our business so that we may continue to innovate and lead the industry to a better oral care solution for all," said David Katzman, CEO of SmileDirectClub.
See Also: Why Mind Medicine Shares Are Rising Today
- Craig-Hallum analyst Alex Nowark upgraded SmileDirectClub from a Sell rating to a Hold rating.
SDC Price Action: SmileDirectClub has traded as low as $1.75 and as high as $16.07 over a 52-week period.
The stock was up 20.9% at $2.41 at time of publication.
Photo: courtesy of SmileDirectClub.
