a.k.a. Brands Holding Corp. Reports Second Quarter 2024 Financial Results
a.k.a. Brands Holding Corp. (NYSE: AKA) reported strong Q2 2024 financial results, with net sales increasing 9.5% to $148.9 million. U.S. net sales grew 19.3% year-over-year. The company saw an 11.7% growth in active customers on a trailing twelve-month basis. Adjusted EBITDA rose 44% to $8.0 million. Despite these positive results, the company reported a net loss of $2.3 million, an improvement from the $5.0 million loss in Q2 2023.
a.k.a. Brands is expanding its physical presence, with plans to open five Princess Polly stores in 2024. The company's omni-channel strategy is showing success, particularly with Petal & Pup's expansion to major retail platforms. For Q3 2024, the company expects net sales between $141-145 million and adjusted EBITDA between $6.0-7.0 million.
a.k.a. Brands Holding Corp. (NYSE: AKA) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un aumento delle vendite nette del 9,5% a 148,9 milioni di dollari. Le vendite nette negli Stati Uniti sono cresciute del 19,3% rispetto all'anno precedente. L'azienda ha registrato una crescita dell'11,7% nel numero di clienti attivi su base annuale. L'EBITDA rettificato è aumentato del 44% a 8,0 milioni di dollari. Nonostante questi risultati positivi, l'azienda ha riportato una perdita netta di 2,3 milioni di dollari, un miglioramento rispetto alla perdita di 5,0 milioni di dollari del secondo trimestre del 2023.
a.k.a. Brands sta espandendo la propria presenza fisica, con piani per aprire cinque negozi Princess Polly nel 2024. La strategia omni-channel dell'azienda sta mostrando successo, in particolare con l'espansione di Petal & Pup su importanti piattaforme di vendita al dettaglio. Per il terzo trimestre del 2024, l'azienda prevede vendite nette tra 141-145 milioni di dollari e un EBITDA rettificato tra 6,0-7,0 milioni di dollari.
a.k.a. Brands Holding Corp. (NYSE: AKA) reportó resultados financieros fuertes para el segundo trimestre de 2024, con un aumento del 9,5% en las ventas netas a 148,9 millones de dólares. Las ventas netas en EE. UU. crecieron un 19,3% interanual. La compañía vio un crecimiento del 11,7% en el número de clientes activos en un periodo de doce meses. El EBITDA ajustado aumentó un 44% a 8,0 millones de dólares. A pesar de estos resultados positivos, la compañía reportó una pérdida neta de 2,3 millones de dólares, una mejora respecto a la pérdida de 5,0 millones de dólares en el segundo trimestre de 2023.
a.k.a. Brands está expandiendo su presencia física, con planes de abrir cinco tiendas de Princess Polly en 2024. La estrategia omni-canal de la empresa está mostrando éxito, particularmente con la expansión de Petal & Pup a plataformas minoristas importantes. Para el tercer trimestre de 2024, la compañía espera ventas netas entre 141-145 millones de dólares y EBITDA ajustado entre 6,0-7,0 millones de dólares.
a.k.a. Brands Holding Corp. (NYSE: AKA)는 2024년 2분기 강력한 재무 결과를 보고했으며, 순매출이 9.5% 증가하여 1억 4890만 달러에 달했습니다. 미국의 순매출은 전년 대비 19.3% 증가했습니다. 회사는 지난 12개월 기준으로 활성 고객이 11.7% 증가했습니다. 조정된 EBITDA는 44% 증가하여 800만 달러에 달했습니다. 이러한 긍정적인 결과에도 불구하고 회사는 230만 달러의 순손실을 보고했습니다, 이는 2023년 2분기의 500만 달러 손실에서 개선된 수치입니다.
a.k.a. Brands는 2024년에 Princess Polly 매장 5개를 열 계획으로 물리적 존재를 확장하고 있습니다. 회사의 옴니채널 전략이 특히 Petal & Pup의 주요 리테일 플랫폼으로의 확장에서 성공을 보이고 있습니다. 2024년 3분기에는 회사가 순매출을 1억 4100만 달러에서 1억 4500만 달러 사이, 조정된 EBITDA를 600만 달러에서 700만 달러 사이로 예상하고 있습니다.
a.k.a. Brands Holding Corp. (NYSE: AKA) a annoncé de solides résultats financiers pour le deuxième trimestre 2024, avec une augmentation des ventes nettes de 9,5% pour atteindre 148,9 millions de dollars. Les ventes nettes aux États-Unis ont augmenté de 19,3% par rapport à l'année précédente. L'entreprise a constaté une croissance de 11,7% du nombre de clients actifs sur une base de douze mois. L'EBITDA ajusté a augmenté de 44% pour atteindre 8,0 millions de dollars. Malgré ces résultats positifs, l'entreprise a signalé une perte nette de 2,3 millions de dollars, une amélioration par rapport à la perte de 5,0 millions de dollars au deuxième trimestre 2023.
a.k.a. Brands étend sa présence physique, avec des plans pour ouvrir cinq magasins Princess Polly en 2024. La stratégie omni-canaux de l'entreprise montre son succès, en particulier avec l'expansion de Petal & Pup sur des plateformes de vente au détail majeures. Pour le troisième trimestre 2024, l'entreprise prévoit des ventes nettes entre 141 et 145 millions de dollars et un EBITDA ajusté entre 6,0 et 7,0 millions de dollars.
a.k.a. Brands Holding Corp. (NYSE: AKA) hat starke Finanzzahlen für das 2. Quartal 2024 gemeldet, mit einem Anstieg der Nettoumsätze um 9,5% auf 148,9 Millionen Dollar. Die Nettoumsätze in den USA stiegen im Jahresvergleich um 19,3%. Das Unternehmen verzeichnete ein Wachstum der aktiven Kunden um 11,7% auf Basis der letzten zwölf Monate. Das bereinigte EBITDA stieg um 44% auf 8,0 Millionen Dollar. Trotz dieser positiven Ergebnisse meldete das Unternehmen einen Nettverlust von 2,3 Millionen Dollar, eine Verbesserung gegenüber dem Verlust von 5,0 Millionen Dollar im 2. Quartal 2023.
a.k.a. Brands erweitert seine physische Präsenz mit der Absicht, fünf Princess Polly Geschäfte im Jahr 2024 zu eröffnen. Die Omni-Channel-Strategie des Unternehmens zeigt Erfolge, insbesondere mit der Expansion von Petal & Pup auf große Einzelhandelsplattformen. Für das 3. Quartal 2024 erwartet das Unternehmen Nettoumsätze zwischen 141 und 145 Millionen Dollar sowie ein bereinigtes EBITDA zwischen 6,0 und 7,0 Millionen Dollar.
- Net sales increased 9.5% to $148.9 million in Q2 2024
- U.S. net sales grew 19.3% year-over-year
- Active customer base increased by 11.7% on a trailing twelve-month basis
- Adjusted EBITDA rose 44% to $8.0 million
- Gross margin improved to 57.7% from 56.9% in Q2 2023
- Plans to open five Princess Polly stores in 2024
- Successful omni-channel expansion for Petal & Pup and mnml brands
- Net loss of $2.3 million in Q2 2024
- Selling expenses increased to 27.7% of net sales from 26.4% in Q2 2023
- Debt increased to $106.9 million from $93.4 million at the end of fiscal year 2023
- Cash flow used in operations was $4.2 million for the first six months of 2024
Insights
a.k.a. Brands' Q2 2024 results show positive momentum, particularly in the U.S. market. Net sales increased
The improved financial performance is evident in the narrowed net loss of
However, investors should note the increase in selling expenses as a percentage of net sales and the company's rising debt levels. The outlook for Q3 and full-year 2024 suggests continued growth, but with potential headwinds from macroeconomic pressures in Australia and New Zealand.
a.k.a. Brands' expansion strategy is noteworthy, particularly the accelerated rollout of Princess Polly stores. With five new locations planned for 2024, the company is capitalizing on the brand's popularity and exploring omnichannel opportunities. This move could enhance brand visibility and drive customer engagement.
The success of Petal & Pup's omnichannel expansion to major platforms like Nordstrom, Target and Macy's is a significant win. This not only broadens the brand's reach but also validates its appeal to a wider audience. The company's ability to leverage this success for other brands, such as mnml's test on Nordstrom.com, demonstrates a scalable strategy.
Culture Kings' continued strong performance in the U.S., coupled with new licensing deals, indicates the brand's growing traction in a key market. However, the company must navigate the challenges of inventory management and declining average order values, particularly in the Australian and New Zealand markets.
Net Sales Increased
Active Customer Growth of
On Track to Open Five Princess Polly Stores in 2024
Results for the Second Quarter
-
Net sales increased
9.5% to , compared to$148.9 million in the second quarter of 2023; up$136.0 million 10.1% on a constant currency basis1. -
In the
U.S. , net sales increased19.3% compared to the second quarter of 2023. -
Net loss was
, or$(2.3) million per share, in the second quarter of 2024, compared to net loss of$(0.22) , or$(5.0) million per share, in the second quarter of 2023.$(0.47) -
Adjusted EBITDA2 was
in the second quarter of 2024, compared to$8.0 million in the second quarter of 2023.$5.6 million
“Our second quarter results exceeded our expectations, showcasing the strength of our brands and the power of our business model. We delivered net sales growth of over
“I am pleased to report that in addition to three planned new Princess Polly store openings previously announced, we have signed two new leases for additional locations in
“Executing at a high level while delivering innovative strategies to meet our customers where and when they want to shop our portfolio of brands strengthens my confidence in the many profitable future growth opportunities we see for a.k.a. Brands, particularly the tremendous whitespace we see in the
Brand Highlights
-
Princess Polly is on track to open stores in the Scottsdale Fashion Square and Fashion Valley Mall in
San Diego in the third quarter of 2024 and stores inBoston ,Santa Clara andIrvine in the fourth quarter of 2024. -
Culture Kings
U.S. registered another quarter of strong double-digit net sales growth and launched new licenses and graphics including Pokemon, WWE, NHL and Halo, with more exclusive collaborations to come in the latter half of the year. - Petal & Pup’s expanded omni-channel presence has far exceeded expectations, setting the stage for continued growth and brand expansion.
- mnml continues to expand its omni-channel distribution with successful tests on Nordstrom.com and other retailers.
Second Quarter Financial Details
-
Net sales increased
9.5% to , compared to$148.9 million in the second quarter of 2023. The increase was driven by a$136.0 million 16% increase in the number of orders, due to growth in theU.S. , partially offset by a decline in the average order value compared to the prior quarter, driven by adverse macroeconomic conditions inAustralia and New Zealand and actions taken to improve our inventory position at Culture Kings. On a constant currency basis1, net sales increased10% . -
Gross margin was
57.7% , compared to56.9% in the second quarter of 2023. The improvement was primarily driven by lower inbound air freight costs and duties, partially offset by the impact of growing wholesale initiatives, as well as growing marketplace initiatives, which have a higher return rate. -
Selling expenses were
, compared to$41.2 million in the second quarter of 2023. Selling expenses were$35.9 million 27.7% of net sales, compared to26.4% of net sales in the second quarter of 2023. The increases were driven by the impact from growing marketplace initiatives and additional stores. -
Marketing expenses were
, compared to$18.3 million in the second quarter of 2023. Marketing expenses were$18.4 million 12.3% of net sales, compared to13.5% of net sales in the second quarter of 2023. -
General and administrative (“G&A”) expenses were
, compared to$25.9 million in the second quarter of 2023. G&A expenses were$24.2 million 17.4% of net sales, compared to17.8% of net sales in the second quarter of 2023. The decrease in G&A expenses as a percent of net sales during the quarter was primarily driven by higher net sales compared to the second quarter of 2023. -
Adjusted EBITDA2 was
, or$8.0 million 5.4% of net sales, compared to , or$5.6 million 4.1% of net sales, in the second quarter of 2023.
Balance Sheet and Cash Flow
-
Cash and cash equivalents at the end of the second quarter totaled
.$25.5 million -
Inventory at the end of the second quarter totaled
, compared to$106.7 million at the end of fiscal year 2023, or compared to$91.0 million at the end of the second quarter of 2023.$106.7 million -
Debt at the end of the second quarter totaled
, compared to$106.9 million at the end of fiscal year 2023, or compared to$93.4 million at the end of the second quarter of 2023.$120.0 million -
Cash flow used in operations for the six months ended June 30, 2024 was
, compared to cash flow from operations of$4.2 million for the six months ended June 30, 2023.$7.3 million
Outlook
For the third quarter of 2024, the Company expects:
-
Net sales between
and$141 million $145 million -
Adjusted EBITDA3 between
and$6.0 million $7.0 million - Weighted average diluted share count of 10.6 million
For the full year fiscal 2024, the Company now expects:
-
Net sales between
and$560 million $565 million -
Adjusted EBITDA3 between
and$20 million $22 million - Weighted average diluted share count of 10.6 million
The above outlook is based on several assumptions, including but not limited to, foreign exchange rates remaining at the current levels, the opening of four to five Princess Polly stores and continued macroeconomic pressures, specifically in
Conference Call
A conference call to discuss the Company’s second quarter results is scheduled for August 7, 2024, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 858-5495 or (201) 689-8853 for international callers. The conference call will also be webcast live at https://ir.aka-brands.com in the Events and Presentations section. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (877) 660-6853 or (201) 612-7415 for international callers, conference ID 13747420. An archive of the webcast will be available on a.k.a. Brands’ investor relations website.
Use of Non-GAAP Financial Measures and Other Operating Metrics
In addition to results determined in accordance with accounting principles generally accepted in
About a.k.a. Brands
a.k.a. Brands is a portfolio of next-generation fashion brands for the next generation of consumers. Each brand in the a.k.a. portfolio targets a distinct Gen Z and millennial audience, creates authentic and inspiring social content and offers quality exclusive merchandise. a.k.a. Brands leverages its next-generation retail platform to help each brand accelerate its growth, scale in new markets and enhance its profitability. Current brands in the a.k.a. Brands portfolio include Princess Polly, Culture Kings, mnml and Petal & Pup.
Forward-Looking Statements
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include the effects of economic downturns and unstable market conditions; our ability in the future to continue to comply with the New York Stock Exchange’s (NYSE) listing standards and maintain the listing of our common stock on the NYSE; risks related to doing business in
a.k.a. BRANDS HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales |
$ |
148,931 |
|
|
$ |
136,028 |
|
|
$ |
265,771 |
|
|
$ |
256,513 |
|
Cost of sales |
|
62,962 |
|
|
|
58,672 |
|
|
|
114,128 |
|
|
|
110,657 |
|
Gross profit |
|
85,969 |
|
|
|
77,356 |
|
|
|
151,643 |
|
|
|
145,856 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling |
|
41,191 |
|
|
|
35,932 |
|
|
|
75,406 |
|
|
|
70,338 |
|
Marketing |
|
18,275 |
|
|
|
18,354 |
|
|
|
33,154 |
|
|
|
33,131 |
|
General and administrative |
|
25,867 |
|
|
|
24,191 |
|
|
|
48,540 |
|
|
|
50,059 |
|
Total operating expenses |
|
85,333 |
|
|
|
78,477 |
|
|
|
157,100 |
|
|
|
153,528 |
|
Income (loss) from operations |
|
636 |
|
|
|
(1,121 |
) |
|
|
(5,457 |
) |
|
|
(7,672 |
) |
Other expense, net: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(2,676 |
) |
|
|
(2,841 |
) |
|
|
(4,954 |
) |
|
|
(5,692 |
) |
Other income (expense) |
|
245 |
|
|
|
(750 |
) |
|
|
(298 |
) |
|
|
(1,784 |
) |
Total other expense, net |
|
(2,431 |
) |
|
|
(3,591 |
) |
|
|
(5,252 |
) |
|
|
(7,476 |
) |
Loss before income taxes |
|
(1,795 |
) |
|
|
(4,712 |
) |
|
|
(10,709 |
) |
|
|
(15,148 |
) |
(Provision for) benefit from income tax |
|
(466 |
) |
|
|
(328 |
) |
|
|
(485 |
) |
|
|
555 |
|
Net loss |
$ |
(2,261 |
) |
|
$ |
(5,040 |
) |
|
$ |
(11,194 |
) |
|
$ |
(14,593 |
) |
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted* |
$ |
(0.22 |
) |
|
$ |
(0.47 |
) |
|
$ |
(1.07 |
) |
|
$ |
(1.36 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted* |
|
10,501,057 |
|
|
|
10,761,511 |
|
|
|
10,509,810 |
|
|
|
10,757,470 |
|
* Adjusted for the one-for-12 reverse stock split, effective as of September 29, 2023. |
a.k.a. BRANDS HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
25,466 |
|
|
$ |
21,859 |
|
Accounts receivable, net |
|
5,778 |
|
|
|
4,796 |
|
Inventory |
|
106,687 |
|
|
|
91,024 |
|
Prepaid income taxes |
|
1,274 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
15,862 |
|
|
|
18,016 |
|
Total current assets |
|
155,067 |
|
|
|
135,695 |
|
Property and equipment, net |
|
25,754 |
|
|
|
27,154 |
|
Operating lease right-of-use assets |
|
52,033 |
|
|
|
37,465 |
|
Intangible assets, net |
|
58,521 |
|
|
|
64,322 |
|
Goodwill |
|
93,604 |
|
|
|
94,898 |
|
Deferred tax assets |
|
1,555 |
|
|
|
1,569 |
|
Other assets |
|
2,270 |
|
|
|
618 |
|
Total assets |
$ |
388,804 |
|
|
$ |
361,721 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
32,773 |
|
|
$ |
28,279 |
|
Accrued liabilities |
|
29,671 |
|
|
|
25,223 |
|
Sales returns reserve |
|
7,930 |
|
|
|
9,610 |
|
Deferred revenue |
|
15,911 |
|
|
|
11,782 |
|
Income taxes payable |
|
— |
|
|
|
257 |
|
Operating lease liabilities, current |
|
7,258 |
|
|
|
7,510 |
|
Current portion of long-term debt |
|
6,300 |
|
|
|
3,300 |
|
Total current liabilities |
|
99,843 |
|
|
|
85,961 |
|
Long-term debt |
|
100,607 |
|
|
|
90,094 |
|
Operating lease liabilities |
|
50,195 |
|
|
|
35,344 |
|
Other long-term liabilities |
|
1,588 |
|
|
|
1,704 |
|
Total liabilities |
|
252,233 |
|
|
|
213,103 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
128 |
|
|
|
128 |
|
Additional paid-in capital |
|
468,726 |
|
|
|
466,172 |
|
Accumulated other comprehensive loss |
|
(53,676 |
) |
|
|
(50,269 |
) |
Accumulated deficit |
|
(278,607 |
) |
|
|
(267,413 |
) |
Total stockholders’ equity |
|
136,571 |
|
|
|
148,618 |
|
Total liabilities and stockholders’ equity |
$ |
388,804 |
|
|
$ |
361,721 |
|
a.k.a. BRANDS HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(11,194 |
) |
|
$ |
(14,593 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation expense |
|
3,041 |
|
|
|
4,230 |
|
Amortization expense |
|
5,527 |
|
|
|
5,931 |
|
Amortization of debt issuance costs |
|
303 |
|
|
|
315 |
|
Lease incentives |
|
— |
|
|
|
1,186 |
|
Loss on disposal of businesses |
|
673 |
|
|
|
1,533 |
|
Non-cash operating lease expense |
|
4,085 |
|
|
|
3,760 |
|
Equity-based compensation |
|
3,851 |
|
|
|
3,760 |
|
Deferred income taxes, net |
|
— |
|
|
|
3 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(914 |
) |
|
|
896 |
|
Inventory |
|
(18,954 |
) |
|
|
15,511 |
|
Prepaid expenses and other current assets |
|
2,757 |
|
|
|
(3,793 |
) |
Accounts payable |
|
4,874 |
|
|
|
350 |
|
Income taxes payable |
|
(1,533 |
) |
|
|
(1,179 |
) |
Accrued liabilities |
|
4,593 |
|
|
|
(9,117 |
) |
Returns reserve |
|
(1,568 |
) |
|
|
2,214 |
|
Deferred revenue |
|
4,253 |
|
|
|
98 |
|
Lease liabilities |
|
(3,992 |
) |
|
|
(3,815 |
) |
Net cash (used in) provided by operating activities |
|
(4,198 |
) |
|
|
7,290 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of intangible assets |
|
(5 |
) |
|
|
(62 |
) |
Purchases of property and equipment |
|
(2,726 |
) |
|
|
(3,618 |
) |
Net cash used in investing activities |
|
(2,731 |
) |
|
|
(3,680 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from line of credit, net of issuance costs |
|
24,500 |
|
|
|
— |
|
Repayment of line of credit |
|
(10,000 |
) |
|
|
(21,100 |
) |
Repayment of debt |
|
(1,200 |
) |
|
|
(2,800 |
) |
Taxes paid related to net share settlement of equity awards |
|
(202 |
) |
|
|
(66 |
) |
Proceeds from issuances under equity-based compensation plans |
|
93 |
|
|
|
90 |
|
Repurchase of shares |
|
(1,189 |
) |
|
|
(299 |
) |
Net cash provided by (used in) financing activities |
|
12,002 |
|
|
|
(24,175 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(1,310 |
) |
|
|
69 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
3,763 |
|
|
|
(20,496 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
24,029 |
|
|
|
48,373 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
27,792 |
|
|
$ |
27,877 |
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
25,466 |
|
|
$ |
25,876 |
|
Restricted cash, included in prepaid expenses and other current assets |
|
582 |
|
|
|
2,001 |
|
Restricted cash, included in other assets |
|
1,744 |
|
|
|
— |
|
Total cash, cash equivalents and restricted cash |
$ |
27,792 |
|
|
$ |
27,877 |
|
a.k.a. BRANDS HOLDING CORP. KEY FINANCIAL AND OPERATING METRICS AND NON-GAAP MEASURES (unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Gross margin |
|
58 |
% |
|
|
57 |
% |
|
|
57 |
% |
|
|
57 |
% |
Net loss |
$ |
(2,261 |
) |
|
$ |
(5,040 |
) |
|
$ |
(11,194 |
) |
|
$ |
(14,593 |
) |
Net loss margin |
|
(2 |
)% |
|
|
(4 |
)% |
|
|
(4 |
)% |
|
|
(6 |
)% |
Adjusted EBITDA2 |
$ |
8,012 |
|
|
$ |
5,568 |
|
|
$ |
8,885 |
|
|
$ |
7,754 |
|
Adjusted EBITDA margin2 |
|
5 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
3 |
% |
Key Operational Metrics and Regional Sales
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
|
|
||||||||||||
(metrics in millions, except AOV; sales in thousands) |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||
Key Operational Metrics |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Active customers4 |
|
4.01 |
|
|
|
3.59 |
|
11.7 |
% |
|
|
4.01 |
|
|
|
3.59 |
|
11.7 |
% |
Average order value |
$ |
78 |
|
|
$ |
82 |
|
(4.9 |
)% |
|
$ |
77 |
|
|
$ |
81 |
|
(4.9 |
)% |
Number of orders |
|
1.92 |
|
|
|
1.65 |
|
16.4 |
% |
|
|
3.44 |
|
|
|
3.15 |
|
9.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales by Region |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
95,375 |
|
|
$ |
79,967 |
|
19.3 |
% |
|
$ |
172,513 |
|
|
$ |
152,593 |
|
13.1 |
% |
|
|
45,650 |
|
|
|
48,037 |
|
(5.0 |
)% |
|
|
79,165 |
|
|
|
89,483 |
|
(11.5 |
)% |
Rest of world |
|
7,906 |
|
|
|
8,024 |
|
(1.5 |
)% |
|
|
14,093 |
|
|
|
14,437 |
|
(2.4 |
)% |
Total |
$ |
148,931 |
|
|
$ |
136,028 |
|
9.5 |
% |
|
$ |
265,771 |
|
|
$ |
256,513 |
|
3.6 |
% |
Year-over-year growth on a constant currency basis1 |
|
10.1 |
% |
|
|
|
|
|
|
4.7 |
% |
|
|
|
|
Active Customers
We view the number of active customers as a key indicator of our growth, our value proposition and consumer awareness of our brand, and their desire to purchase our products. In any particular period, we determine our number of active customers by counting the total number of unique customer accounts who have made at least one purchase in the preceding 12-month period, measured from the last date of such period.
Average Order Value
We define average order value (“AOV”) as net sales in a given period divided by the total orders placed in that period. AOV may fluctuate as we expand into new categories or geographies or as our assortment changes.
a.k.a. BRANDS HOLDING CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that management uses to assess our operating performance. Because Adjusted EBITDA and Adjusted EBITDA margin facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.
We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. We expect Adjusted EBITDA margin to increase over the long-term as we continue to scale our business and achieve greater leverage in our operating expenses.
We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: interest and other expense; provision for income (benefit from) taxes; depreciation and amortization expense; equity-based compensation expense; costs to establish or relocate distribution centers; transaction costs; costs related to severance from headcount reductions; goodwill and intangible asset impairment; sales tax penalties; insured losses, net of any recoveries; and one-time or non-recurring items. We calculate Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EBITDA and Adjusted EBITDA margin are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in net income (loss) and net income (loss) margin, the most directly comparable financial measures calculated in accordance with GAAP.
A reconciliation of non-GAAP Adjusted EBITDA to net loss for the three and six months ended June 30, 2024 and 2023 is as follows:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss |
$ |
(2,261 |
) |
|
$ |
(5,040 |
) |
|
$ |
(11,194 |
) |
|
$ |
(14,593 |
) |
Add (deduct): |
|
|
|
|
|
|
|
||||||||
Total other expense, net |
|
2,431 |
|
|
|
3,591 |
|
|
|
5,252 |
|
|
|
7,476 |
|
Provision for (benefit from) income tax |
|
466 |
|
|
|
328 |
|
|
|
485 |
|
|
|
(555 |
) |
Depreciation and amortization expense |
|
4,270 |
|
|
|
4,720 |
|
|
|
8,568 |
|
|
|
10,161 |
|
Equity-based compensation expense |
|
1,895 |
|
|
|
1,824 |
|
|
|
3,851 |
|
|
|
3,760 |
|
Non-routine items5 |
|
1,211 |
|
|
|
145 |
|
|
|
1,923 |
|
|
|
1,505 |
|
Adjusted EBITDA |
$ |
8,012 |
|
|
$ |
5,568 |
|
|
$ |
8,885 |
|
|
$ |
7,754 |
|
Net loss margin |
|
(2 |
)% |
|
|
(4 |
)% |
|
|
(4 |
)% |
|
|
(6 |
)% |
Adjusted EBITDA margin |
|
5 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
3 |
% |
1 In order to provide a framework for assessing the performance of our underlying business, excluding the effects of foreign currency rate fluctuations, we compare the percent change in the results from one period to another period using a constant currency methodology wherein current and comparative prior period results for our operations reporting in currencies other than
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 The Company has not provided a quantitative reconciliation of its Adjusted EBITDA outlook to a GAAP net income outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future equity-based compensation expense, income taxes, interest expense and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. See additional information at the end of this release regarding non-GAAP financial measures.
4 Trailing twelve months.
5 Non-routine items include severance from headcount reductions; sales tax penalties; insured losses, net of recoveries; and non-routine legal matters.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807148636/en/
Investor Contact
investors@aka-brands.com
Media Contact
media@aka-brands.com
Source: a.k.a. Brands
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