SmileDirectClub Inc. (SDC) shares soared 11.06% in after-hours on Monday, January 24, 2022, and closed the daily trading at $2.21. Even in the regular trading session of Monday, SDC’s stock gained 2.05%. SDC shares have fallen 85.10% over the last 12 months, and they have moved down 11.56% in the past week. Over the past three months, the stock has lost 63.08%, while over the past six months, it has declined 70.95%.
Let’s have a brief look at its recent news and developments.
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SDC latest strategic actions
On January 24, 2022, SmileDirectClub, Inc. announced a series of strategic actions to improve the company’s business performance and future growth, including right-sizing its cost structure to better support core growth initiatives and allocating capital to countries with the greatest potential for near-term profitability.
The company announced the expansion of its professional channel, the SmileDirectClub Partner Network; innovations to its aligner products to allow the Company to capture greater market share of the teen and higher-household income demographics; its burgeoning oral care product business; and SmileShop growth in markets with strong consumer demand.
SDC announced to suspend its operations in Mexico, Spain, Germany, Netherlands, Austria, Hong Kong, Singapore, and New Zealand. The Company will continue to operate in the United States, Canada, United Kingdom, Ireland, France, and Australia. The company will also reduce its workforce to right-size its operating structure so it is tailored to the countries in which the Company will continue to operate and focus.
From the above-mentioned initiatives, the company would be able to reduce year-over-year costs and will get capital savings of approximately $120 million in 2022.
Expansion of oral care line
On January 19, 2022, SmileDirectClub, Inc. (SDC) announced the expansion of its award-winning whitening product line with its new fast-dissolving Whitening Strips.
The news whitening strips are fast dissolving and can provide ideal whitening treatment just once a day for 15 minutes.
SDC new partnerships
On January 13, 2022, SmileDirectClub (SDC), created its new Confidence Council in partnership with Ambassadors Jonathan Van Ness, Tunde Oyeneyin, and Arielle Vandenberg, to shine a light on the transformational power of a smile. Through their experiences with ‘Queer Eye,’ Peloton, and ‘Love Island,’ these individuals understand the vital role that confidence can play in transforming your life, body, and relationships.
SDC corporate changes
On December 07, 2021, SmileDirectClub, Inc. (SDC), announced the resignation of Chief Financial Officer Kyle Wailes to pursue a CEO opportunity at a healthcare company. Wailes will remain in his role to support the transition of responsibilities through March 1, 2022, and will continue to own a significant amount of equity in the Company.
The recent cost-cutting and saving initiatives were the reason behind its gains on Monday and we can expect it to further surge on Tuesday as well.