Is SmileDirectClub's Walmart Partnership the Beginning of Something Big?
SmileDirectClub Inc. (NASDAQ: SDC) shares jumped on Monday after the firm announced a partnership with Walmart Inc. (NYSE WMT). This partnership makes SmileDirectClub the first provider of clear aligner therapy to offer oral care products in mass retail.
According to the deal, SmileDirectClub will launch an end-to-end solution to keep teeth fresh, clean, bright and healthy, a suite of oral care products available exclusively at Walmart’s U.S. stores and on its website.
This quarter, the brand also will introduce three additional new products with Walmart, including toothpaste, a water flosser and the first ultrasonic UV cleaner on the market that sanitizes toothbrush heads, aligners, retainers, dentures and more.
Josh Chapman, Chief Global Brand Officer of SmileDirectClub, commented:
SmileDirectClub’s debut of oral care products in mass retail extends our mission to be the consumer’s first resource for safe, affordable, and convenient oral care solutions. Partnering with Walmart to introduce our products reinforces our shared commitment to providing premium quality products at a price worth smiling about.
To date, SmileDirectClub has helped more than 750,000 people transform their smiles through remote doctor-directed clear aligner therapy. However, this was before the company had partnered with the retail juggernaut of Walmart. Considering Walmart’s extensive reach, SmileDirectClub could push its numbers much higher.
Excluding Monday’s move, SmileDirectClub had underperformed the broad markets, with its stock down 39% in the past quarter. Note that this company only came public in September.
Shares of SmileDirectClub were up about 11.5% to $9.34 early Monday. The stock has a 52-week range of $7.56 to $21.10, and the consensus analyst price target is $19.44.