KIDPIK Reports Fourth Quarter and Full Year 2023 Financial Results
- None.
- Revenue decreased by 28.9% in Q4 and 13.6% for the year
- Negative gross margin due to a one-time inventory write-down
- Net loss of $4.0 million for Q4 and $9.9 million for the year
Insights
Examining Kidpik Corp.'s financial results, the reported year-over-year decrease in revenue and a significant net loss are indicators of the company's struggle in the current fiscal year. The substantial inventory write-down suggests an overestimation of inventory value or a shift in market demand, leading to excess stock that could not be sold at anticipated prices. The negative gross margin reflects the impact of this write-down and is a concern for the company's profitability.
However, the increase in the average shipment keep rate could be a silver lining, indicating that customers are finding the products satisfactory enough to retain them, which could be a positive sign for future sales strategies and customer retention efforts. Nevertheless, the overall financial health of the company seems challenged, which could affect investor confidence and the stock price in the short term.
The e-commerce apparel market is highly competitive and subject to rapid changes in consumer preferences. Kidpik Corp.'s decision to reduce inventory levels and halt new inventory purchases could be a strategic move to realign their product offerings with current market trends. This approach may help mitigate further losses, but it also raises questions about the company's long-term growth strategy and ability to adapt to market dynamics.
Furthermore, the merger with Nina Footwear could potentially open new avenues for cross-brand synergies and customer base expansion. The success of this merger will depend on the integration of the two companies' operations and whether it can result in cost savings or revenue growth. Investors should monitor the post-merger performance closely to assess the long-term viability of this strategic decision.
From an economic perspective, Kidpik Corp.'s financial performance might be symptomatic of broader economic trends such as consumer spending shifts or supply chain disruptions. The decrease in shipped items and the need for inventory write-downs could reflect a downturn in discretionary spending, which is often affected by macroeconomic factors like employment rates and consumer confidence.
Additionally, the reported net loss and negative adjusted EBITDA highlight the importance of operational efficiency and cost management in maintaining financial stability. As the company enters into a merger, the economic environment will play a important role in determining the success of the combined entity. The ability to leverage economies of scale and improve financial performance will be critical in a potentially tightening economic climate.
Fourth Quarter 2023 Highlights:
-
Revenue, net: was
$3.4 million 28.9% -
Gross margin: was negative
16.2% , which was the result of a one-time inventory write-down of$2.9 million 69.5% ) from58.9% in the fourth quarter of 2022 - Shipped items: were 285,000 items, compared to 374,000 shipped items in the fourth quarter of 2022
-
Average shipment keep rate: increased to
66.2% , compared to65.3% in the fourth quarter of 2022 -
Net Loss: was
$4.0 million $2.14 -
Adjusted EBITDA: was a loss of
$3.9 million
Full Year 2023 Financial Highlights:
-
Revenue, net: was
$14.2 million 13.6% -
Gross margin: was
42.2% , a year-over-year decrease of 17.7 basis points from59.9% in 2022 - Shipped items: were 1.2 million items, compared to 1.5 million shipped items in 2022
-
Average shipment keep rate: increased to
72.8% , compared to68.3% last year -
Net Loss: was
$9.9 million $6.04 -
Adjusted EBITDA: was a loss of
$8.8 million
“During the 4th quarter of 2023, we continued to execute our plan to reduce inventory levels, and ceased purchasing new inventory,” commented Ezra Dabah, CEO of Kidpik, who continued, “As discussed in greater detail in the press release we released on April 1, 2024, on March 29, 2024, we entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Nina Footwear Corp., a
The closing of the Merger is subject to customary closing conditions, including the preparation and mailing of a proxy statement by Kidpik, and the receipt of required stockholder approvals from Kidpik and Nina Footwear stockholders, and is expected to close in the third quarter of 2024.
Revenue by Subscription- For year ended 2023
Active Subscriptions (recurring boxes): decreased by
New Subscriptions (first boxes): decreased by
Total Subscriptions: decreased
Balance Sheet and Cash Flow
-
Cash at the end of the fourth quarter totaled
$0.2 million $0.6 million -
Net cash used in operating activities decreased to
$0.3 million $6.6 million -
As of December 30, 2023, we had
$6.0 million $5.3 million $0.7 million
Kidpik will not be holding an earnings call to discuss fourth quarter 2023 or year-end 2023 results, as the Company moves forward with the Merger.
About Kidpik Corp.
Founded in 2016, KIDPIK (Nasdaq:PIK) is an online clothing subscription box for kids, offering mix & match, expertly styled outfits that are curated based on each member’s style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids’ unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com.
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles in
Our non-GAAP financial measure should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
- Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
- Adjusted EBITDA does not reflect certain non-routine items that may represent a reduction in cash available to us; and
- Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
We compensate for these limitations by providing a reconciliation of this non-GAAP measure to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view this non-GAAP measure in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measure, please see the section titled “Unaudited Reconciliation of Net Loss to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)”, included at the end of this release.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). These include, but are not limited to, statements regarding the anticipated completion and effects of the proposed Merger, projections and estimates of Kidpik’s corporate strategies, future operations and plans, including the costs thereof; and other statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Kidpik and Nina Footwear undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. We use words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on our expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors, including, but not limited to, the outcome of any legal proceedings that may be instituted against Nina Footwear or Kidpik following the announcement of the Merger; the inability to complete the Merger, including due to the failure to obtain approval of the stockholders of Kidpik or Nina Footwear; delays in obtaining, adverse conditions contained in, or the inability to obtain necessary regulatory approvals or complete regular reviews required to complete the Merger, if any; the inability to recognize the anticipated benefits of the Merger, which may be affected by, among other things, competition, the ability of the combined company to grow and successfully execute on its business plan; costs related to the Merger; changes in the applicable laws or regulations; the possibility that the combined company may be adversely affected by other economic, business, and/or competitive factors; the combined company’s ability to manage future growth; the combined company’s ability to raise funding; the complexity of numerous regulatory and legal requirements that the combined company needs to comply with to operate its business; the reliance on the combined company’s management; the prior experience and successes of the combined company’s management team are not indicative of any future success; Kidpik’s and the combined company’s ability to meet Nasdaq’s continued listing requirements; Kidpik and the combined company’s ability to maintain the listing of their common stock on Nasdaq; the ability to obtain additional funding, the terms of such funding and potential dilution caused thereby; the continuing effect of rising interest rates and inflation on Kidpik’s and the combined company’s operations, sales, and market for their products; deterioration of the global economic environment; rising interest rates and inflation and Kidpik’s and the combined company’s ability to control costs, including employee wages and benefits and other operating expenses; Kidpik’s decision to cease manufacturing new products; Kidpik’s history of losses; Kidpik’s and the combined company’s ability to maintain current members and customers and grow members and customers; risks associated with the effect of global pandemics, and governmental responses thereto on Kidpik’s and the combined company’s operations, those of Kidpik’s and the combined company’s vendors, Kidpik’s and the combined company’s customers and members and the economy in general; risks associated with Kidpik’s and the combined company’s supply chain and third-party service providers, interruptions in the supply of raw materials and merchandise; increased costs of raw materials, products and shipping costs due to inflation; disruptions at Kidpik’s and the combined company’s warehouse facility and/or of their data or information services, Kidpik’s and the combined company’s ability to locate warehouse and distribution facilities and the lease terms of any such facilities; issues affecting our shipping providers; disruptions to the internet; risks that effect our ability to successfully market Kidpik’s and the combined company’s products to key demographics; the effect of data security breaches, malicious code and/or hackers; increased competition and our ability to maintain and strengthen Kidpik’s and the combined company’s brand name; changes in consumer tastes and preferences and changing fashion trends; material changes and/or terminations of Kidpik’s and the combined company’s relationships with key vendors; significant product returns from customers, excess inventory and Kidpik’s and the combined company’s ability to manage our inventory; the effect of trade restrictions and tariffs, increased costs associated therewith and/or decreased availability of products; Kidpik’s and the combined company’s ability to innovate, expand their offerings and compete against competitors which may have greater resources; the fact that Kidpik’s Chief Executive Officer has majority voting control over Kidpik and will have majority control over the combined company; if the use of “cookie” tracking technologies is further restricted, regulated, or blocked, or if changes in technology cause cookies to become less reliable or acceptable as a means of tracking consumer behavior; Kidpik’s and the combined company’s ability to comply with the covenants of future loan and lending agreements and covenants; Kidpik’s and the combined company’s ability to prevent credit card and payment fraud; the risk of unauthorized access to confidential information; Kidpik’s and the combined company’s ability to protect intellectual property and trade secrets, claims from third-parties that Kidpik and/or the combined company have violated their intellectual property or trade secrets and potential lawsuits in connection therewith; Kidpik’s and the combined company’s ability to comply with changing regulations and laws, penalties associated with any non-compliance (inadvertent or otherwise), the effect of new laws or regulations, and Kidpik’s and the combined company’s ability to comply with such new laws or regulations; changes in tax rates; Kidpik’s and the combined company’s reliance and retention of management; the outcome of future lawsuits, litigation, regulatory matters or claims; the fact that Kidpik and the combined company have a limited operating history; the effect of future acquisitions on Kidpik’s and the combined company’s operations and expenses; and others that are included from time to time in filings made by Kidpik with the Securities and Exchange Commission, many of which are beyond the control of Kidpik and the combined company, including, but not limited to, in the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” sections in Kidpik’s Form 10-Ks and Form 10-Qs and in its Form 8-Ks, which it has filed, and files from time to time, with the Securities and Exchange Commission, including, but not limited to its Annual Report on Form 10-K for the year ended December 30, 2023. These reports are available at www.sec.gov and on Kidpik’s website at https://investor.kidpik.com/sec-filings. Kidpik cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to Kidpik or any person acting on behalf of Kidpik are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on Kidpik’s and the combined company’s future results and/or could cause their actual results and financial condition to differ materially from those indicated in the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Kidpik cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Except as required by law, neither Nina Footwear nor Kidpik undertakes any obligation to update publicly any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in their expectations. If they update one or more forward-looking statements, no inference should be drawn that they will make additional updates with respect to those or other forward-looking statements.
Additional Information and Where to Find It
In connection with the proposed Merger, Kidpik intends to file a proxy statement with the Securities and Exchange Commission (the “Proxy Statement”), that will be distributed to holders of Kidpik’s common stock in connection with its solicitation of proxies for the vote by Kidpik’s stockholders with respect to the proposed Merger and other matters as may be described in the Proxy Statement. The Proxy Statement, when it is filed and mailed to stockholders, will contain important information about the proposed Merger and the other matters to be voted upon at a meeting of Kidpik’s stockholders to be held to approve the proposed Merger and other matters (the “Merger Meeting”). Kidpik may also file other documents with the SEC regarding the proposed Merger. Kidpik stockholders and other interested persons are advised to read, when available, the Proxy Statement, as well as any amendments or supplements thereto, because they will contain important information about the proposed Merger. When available, the definitive Proxy Statement will be mailed to Kidpik stockholders as of a record date to be established for voting on the proposed Merger and the other matters to be voted upon at the Merger Meeting.
Kidpik’s stockholders may obtain copies of the aforementioned documents and other documents filed by Kidpik with the SEC, without charge, once available, at the SEC’s web site at www.sec.gov, on Kidpik’s website at https://investor.kidpik.com/sec-filings or, alternatively, by directing a request by mail, email or telephone to Kidpik at 200 Park Avenue South, 3rd Floor,
Participants in the Solicitation
Kidpik, Nina Footwear, and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from Kidpik’s stockholders with respect to the proposed Merger. Information regarding the persons who may be deemed participants in the solicitation of proxies from Kidpik’s stockholders in connection with the proposed Merger will be contained in the Proxy Statement relating to the proposed Merger, when available, which will be filed with the SEC. Additionally, information about Kidpik’s directors and executive officers and their ownership of Kidpik is available in Kidpik’s Definitive Information Statement on Schedule 14A, as filed with the Securities and Exchange Commission on May 1, 2023 (the “Annual Meeting Proxy Statement”) and the Current Report on Form 8-K filed with the SEC on December 8, 2023. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Annual Meeting Proxy Statement, such information has been or will be reflected on Kidpik’s Statements of Change in Ownership on Forms 3 and 4 filed with the SEC. You may obtain free copies of these documents using the sources indicated above.
Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC regarding the Merger Agreement when they become available. Investors should read the Proxy Statement carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from Kidpik using the sources indicated above.
Non-Solicitation
This communication is for informational purposes only and is not intended to and shall not constitute a proxy statement or the solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Merger Agreement and is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote of approval, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Kidpik Corp. Statements of Operations Years Ended December 30, 2023 and December 31, 2022 |
|||||||||||||||||
|
|
For the 13 weeks ended |
|
For the 52 weeks ended |
|||||||||||||
|
|
December
|
|
December
|
|
December
|
|
December
|
|||||||||
Revenues, net |
|
$ |
3,373,144 |
|
|
$ |
4,743,852 |
|
|
$ |
14,240,724 |
|
|
$ |
16,477,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
3,918,985 |
|
|
|
1,950,455 |
|
|
|
8,228,458 |
|
|
|
6,600,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
(545,841 |
) |
|
|
2,793,397 |
|
|
|
6,012,266 |
|
|
|
9,877,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipping and handling |
|
|
1,136,631 |
|
|
|
1,201,517 |
|
|
|
4,308,265 |
|
|
|
4,334,928 |
|
|
Payroll, related costs |
|
|
778,158 |
|
|
|
1,139,224 |
|
|
|
3,974,438 |
|
|
|
5,276,719 |
|
|
General and administrative |
|
|
1,597,997 |
|
|
|
2,211,759 |
|
|
|
7,586,540 |
|
|
|
8,061,825 |
|
|
Depreciation and amortization |
|
|
12,503 |
|
|
|
7,925 |
|
|
|
48,119 |
|
|
|
27,914 |
|
|
Total operating expenses |
|
|
3,525,289 |
|
|
|
4,560,425 |
|
|
|
15,917,362 |
|
|
|
17,701,386 |
|
|
Operating loss |
|
|
(4,071,130 |
) |
|
|
(1,767,028 |
) |
|
|
(9,905,096 |
) |
|
|
(7,823,409 |
) |
|
Other (income) expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
(71,036 |
) |
|
|
27,162 |
|
|
|
686 |
|
|
|
78,646 |
|
|
Other income |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(286,794 |
) |
||
Total other (income) expenses |
|
|
(71,036) |
|
|
|
27,162 |
|
|
|
686 |
|
|
|
(208,148 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes |
|
|
(4,000,094 |
) |
|
|
(1,794,190 |
) |
|
|
(9,905,782 |
) |
|
|
(7,615,261 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,000,094 |
) |
|
$ |
(1,794,190 |
) |
|
$ |
(9,905,782 |
) |
|
$ |
(7,615,261 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.14 |
) |
|
$ |
(1.17 |
) |
|
$ |
(6.04 |
) |
|
$ |
(4.97 |
) |
|
Diluted |
|
$ |
(2.14 |
) |
|
$ |
(1.17 |
) |
|
$ |
(6.04 |
) |
|
$ |
(4.97 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
1,872,433 |
|
|
|
1,537,639 |
|
|
|
1,640,191 |
|
|
|
1,532,498 |
|
|
Diluted |
|
|
1,872,433 |
|
|
|
1,537,639 |
|
|
|
1,640,191 |
|
|
|
1,532,498 |
||
Kidpik Corp. Balance Sheets December 30, 2023 and December 31, 2022 |
||||||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
194,515 |
|
|
$ |
600,595 |
|
Restricted cash |
|
|
4,618 |
|
|
|
4,618 |
|
Accounts receivable |
|
|
211,739 |
|
|
|
336,468 |
|
Inventory |
|
|
4,854,641 |
|
|
|
12,625,948 |
|
Prepaid expenses and other current assets |
|
|
761,969 |
|
|
|
1,043,095 |
|
Total current assets |
|
|
6,027,482 |
|
|
|
14,610,724 |
|
|
|
|
|
|
|
|
|
|
Leasehold improvements and equipment, net |
|
|
97,136 |
|
|
|
67,957 |
|
Operating lease right-of-use assets |
|
|
992,396 |
|
|
|
1,469,665 |
|
Total assets |
|
$ |
7,117,014 |
|
|
$ |
16,148,346 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,862,266 |
|
|
$ |
2,153,389 |
|
Accounts payable, related party |
|
|
1,868,411 |
|
|
|
1,107,665 |
|
Accrued expenses and other current liabilities |
|
|
438,034 |
|
|
|
587,112 |
|
Operating lease liabilities |
|
|
281,225 |
|
|
|
438,957 |
|
Short-term debt, related party |
|
|
850,000 |
|
|
|
2,050,000 |
|
Total current liabilities |
|
|
5,299,936 |
|
|
|
6,337,123 |
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, net of current portion |
|
|
780,244 |
|
|
|
1,061,469 |
|
Total liabilities |
|
|
6,080,180 |
|
|
|
7,398,592 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred stock, par value |
|
|
- |
|
|
|
- |
|
Common stock, par value |
|
|
1,872 |
|
|
|
1,537 |
|
Additional paid-in capital |
|
|
52,475,189 |
|
|
|
50,282,662 |
|
Accumulated deficit |
|
|
(51,440,227 |
) |
|
|
(41,534,445 |
) |
Total stockholders’ equity |
|
|
1,036,834 |
|
|
|
8,749,754 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,117,014 |
|
|
$ |
16,148,346 |
|
Kidpik Corp. Statements of Cash Flows Years Ended December 30, 2023 and December 31, 2022 |
|||||||||||||||
|
|
2023 |
|
2022 |
|||||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|||||||
Net loss |
|
$ |
(9,905,782 |
) |
|
$ |
(7,615,261 |
) |
|||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
|
|
48,119 |
|
|
|
27,914 |
|
|||||||
Equity-based compensation |
|
|
999,309 |
|
|
|
1,651,048 |
|
|||||||
Inventory write-down |
|
|
2,891,120 |
|
|
|
- |
|
|||||||
Bad debt expense |
|
|
301,102 |
|
|
|
742,037 |
|
|||||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|||||||
Accounts receivable |
|
|
(176,373 |
) |
|
|
(736,231 |
) |
|||||||
Inventory |
|
|
4,880,187 |
|
|
|
(1,007,351 |
) |
|||||||
Prepaid expenses and other current assets |
|
|
281,126 |
|
|
|
683,421 |
|
|||||||
Operating lease right-of-use assets and liabilities |
|
|
38,312 |
|
|
|
30,761 |
|
|||||||
Accounts payable |
|
|
(291,126 |
) |
|
|
(406,972 |
) |
|||||||
Accounts payable, related parties |
|
|
760,747 |
|
|
|
193,957 |
|
|||||||
Accrued expenses and other current liabilities |
|
|
(149,075 |
) |
|
|
(213,860 |
) |
|||||||
Net cash flows used in operating activities |
|
|
(332,334 |
) |
|
|
(6,650,537 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|||||||
Purchases of leasehold improvements and equipment |
|
|
(77,299 |
) |
|
|
(48,903 |
) |
|||||||
Net cash used in investing activities |
|
|
(77,299 |
) |
|
|
(48,903 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|||||||
Net repayments from loan related party |
|
|
- |
|
|
|
(150,000 |
) |
|||||||
Net repayments from advance payable |
|
|
- |
|
|
|
(932,155 |
) |
|||||||
Cash used to settle net share equity awards |
|
|
(6,447 |
) |
|
|
(33,692 |
) |
|||||||
Net cash (used in) provided by financing activities |
|
|
(6,447 |
) |
|
|
(1,115,847 |
) |
|||||||
Net (decrease) increase in cash |
|
|
(406,080 |
) |
|
|
(7,815,287 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash and restricted cash, beginning of year |
|
|
605,213 |
|
|
|
8,420,500 |
|
|||||||
Cash and restricted cash, end of year |
|
$ |
199,133 |
|
|
$ |
605,213 |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Supplemental disclosure of cash flow data: |
|
|
|
|
|
|
|
|
|||||||
Interest paid |
|
$ |
- |
|
|
$ |
38,607 |
|
|||||||
Taxes paid |
|
$ |
- |
|
|
$ |
- |
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Supplemental disclosure of noncash investing and financing activities: |
|
|
|
|
|
|
|
|
|||||||
Record right-of use asset and operating lease liabilities |
|
|
- |
|
|
|
1,857,925 |
|
|||||||
Conversion of shareholder debt |
|
$ |
1,200,000 |
|
|
$ |
- |
|
|||||||
RESULTS OF OPERATIONS
The Company’s revenue, net is disaggregated based on the following categories:
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
||||||||||
|
|
December
|
|
|
December
|
|
|
December
|
|
|
December
|
|
||||
Subscription boxes |
|
$ |
2,421,594 |
|
|
$ |
3,534,962 |
|
|
$ |
10,428,319 |
|
|
$ |
12,861,293 |
|
3rd party websites sales |
|
|
416,545 |
|
|
|
593,446 |
|
|
|
1,771,608 |
|
|
|
2,170,858 |
|
Online website sales |
|
|
535,005 |
|
|
|
615,444 |
|
|
|
2,040,797 |
|
|
|
1,445,833 |
|
Total revenue |
|
$ |
3,373,144 |
|
|
$ |
4,743,852 |
|
|
$ |
14,240,724 |
|
|
$ |
16,477,984 |
|
Gross Margin
Gross profit is equal to our net sales (revenues, net) less cost of goods sold. Gross profit as a percentage of our net sales is referred to as gross margin. Cost of sales consists of the purchase price of merchandise sold to customers and includes import duties and other taxes, freight in, defective merchandise returned from customers, receiving costs, inventory write-offs, and other miscellaneous shrinkage.
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
|||||||||||||
|
|
December 30,
|
|
December 31,
|
|
|
December 30,
|
|
|
December 31,
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Margin |
|
|
(16.2 |
)% |
|
|
58.9 |
% |
|
|
|
42.2 |
% |
|
|
|
59.9 |
% |
|
Shipped Items
We define shipped items as the total number of items shipped in a given period to our customers through our active subscription, Amazon and online website sales.
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
||||||||||
|
|
(In thousands) |
|
|
(In thousands) |
|
||||||||||
|
|
December 30,
|
|
|
December 31, 2022 |
|
|
December
|
|
|
December 31,
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Shipped Items |
|
|
285 |
|
|
|
374 |
|
|
|
1,208 |
|
|
|
1,457 |
|
Average Shipment Keep Rate
Average shipment keep rate is calculated as the total number of items kept by our customers divided by total number of shipped items in a given period.
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
||||||||||||||
|
|
December 30,
|
|
|
December 31,
|
|
|
December 30,
|
|
|
December 31,
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average Shipment Keep Rate |
|
|
66.2 |
% |
|
|
|
65.3 |
% |
|
|
|
72.8 |
% |
|
|
|
68.3 |
% |
|
Revenue by Channel
|
|
13 weeks ended
|
|
13 weeks ended
|
|
Change ($) |
|
Change (%) |
||||||||
Revenue by channel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
2,421,594 |
|
|
$ |
3,534,962 |
|
|
|
(1,113,368 |
) |
|
|
(31.5 |
)% |
3rd party websites sales |
|
|
416,545 |
|
|
|
593,446 |
|
|
|
(176,901 |
) |
|
|
(29.8 |
)% |
Online website sales |
|
|
535,005 |
|
|
|
615,444 |
|
|
|
(80,439 |
) |
|
|
(13.1 |
)% |
Total revenue |
|
$ |
3,373,144 |
|
|
$ |
4,743,852 |
|
|
$ |
(1,370,708 |
) |
|
|
(28.9 |
)% |
|
52 weeks ended
|
|
52 weeks ended
|
|
Change ($) |
|
Change (%) |
|||||||||
Revenue by channel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
10,428,319 |
|
|
$ |
12,861,293 |
|
|
$ |
(2,432,974 |
) |
|
|
(18.9 |
)% |
3rd party websites sales |
|
|
1,771,608 |
|
|
|
2,170,858 |
|
|
|
(399,250 |
) |
|
|
(18.4 |
)% |
Online website sales |
|
|
2,040,797 |
|
|
|
1,445,833 |
|
|
|
594,964 |
|
|
|
41.2 |
% |
Total revenue |
|
$ |
14,240,724 |
|
|
$ |
16,477,984 |
|
|
$ |
(2,237,260 |
) |
|
|
(13.6 |
)% |
Subscription Boxes Revenue
|
|
13 weeks ended December 30, 2023 |
|
13 weeks ended December 31, 2022 |
|
Change ($) |
|
Change (%) |
||||||||
Subscription boxes revenue from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions – recurring boxes |
|
$ |
2,256,926 |
|
|
$ |
2,923,413 |
|
|
$ |
(666,487 |
) |
|
|
(22.8 |
)% |
New subscriptions - first box |
|
|
164,668 |
|
|
|
611,549 |
|
|
|
(446,881 |
) |
|
|
(73.1 |
)% |
Total Subscription boxes revenue |
|
$ |
2,421,594 |
|
|
$ |
3,534,962 |
|
|
$ |
(1,113,368 |
) |
|
|
(31.5 |
)% |
|
|
52 weeks ended December 30, 2023 |
|
52 weeks ended December 31, 2022 |
|
Change ($) |
|
Change (%) |
||||||||
Subscription boxes revenue from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions – recurring boxes |
|
$ |
8,806,473 |
|
|
$ |
11,007,517 |
|
|
$ |
(2,201,044 |
) |
|
|
(20.0 |
)% |
New subscriptions - first box |
|
|
1,621,846 |
|
|
|
1,853,776 |
|
|
|
(231,930 |
) |
|
|
(12.5 |
)% |
Total Subscription boxes revenue |
|
$ |
10,428,319 |
|
|
$ |
12,861,293 |
|
|
$ |
(2,432,974 |
) |
|
|
(18.9 |
)% |
Revenue by Product Line
|
|
13 weeks ended
|
|
13 weeks ended
|
|
Change ($) |
|
Change (%) |
||||||||
Revenue by product line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’ apparel |
|
$ |
2,559,807 |
|
|
$ |
3,499,888 |
|
|
$ |
(940,081 |
) |
|
|
(26.9 |
)% |
Boys’ apparel |
|
|
690,717 |
|
|
|
988,939 |
|
|
|
(298,222 |
) |
|
|
(30.2 |
)% |
Toddlers’ apparel |
|
|
122,620 |
|
|
|
255,025 |
|
|
|
(132,405 |
) |
|
|
(51.9 |
)% |
Total revenue |
|
$ |
3,373,144 |
|
|
$ |
4,743,852 |
|
|
$ |
(1,370,708 |
) |
|
|
(28.9 |
)% |
|
|
52 weeks ended
|
|
52 weeks ended
|
|
Change ($) |
|
Change (%) |
||||||||
Revenue by product line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’ apparel |
|
$ |
10,844,289 |
|
|
$ |
12,211,914 |
|
|
$ |
(1,367,625 |
) |
|
|
(11.2 |
)% |
Boys’ apparel |
|
|
2,760,864 |
|
|
|
3,437,117 |
|
|
|
(676,253 |
) |
|
|
(19.7 |
)% |
Toddlers’ apparel |
|
|
635,571 |
|
|
|
828,953 |
|
|
|
(193,382 |
) |
|
|
(23.3 |
)% |
Total revenue |
|
$ |
14,240,724 |
|
|
$ |
16,477,984 |
|
|
$ |
(2,237,260 |
) |
|
|
(13.6 |
)% |
Unaudited Reconciliation of Net Loss to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
We define adjusted EBITDA as net loss excluding interest income/expense, other (income) expense, net, provision for income taxes, depreciation and amortization, and equity-based compensation expense, and certain non-routine items. The following table presents a reconciliation of net loss, the most comparable GAAP financial measure, to adjusted EBITDA for each of the periods presented:
|
|
For the 13 weeks ended |
|
|
For the 52 weeks ended |
|
||||||||||
|
|
December 30, 2023 |
|
|
December 31, 2022 |
|
|
December 30, 2023 |
|
|
December 31, 2022 |
|
||||
Net loss |
|
$ |
(4,000,094 |
) |
$ |
|
(1,794,190 |
) |
|
$ |
(9,905,782 |
) |
$ |
|
(7,615,261 |
) |
Add (deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense |
|
|
(71,036 |
) |
|
|
27,161 |
|
|
|
686 |
|
|
|
78,646 |
|
Other income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(286,794 |
) |
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
12,503 |
|
|
|
7,925 |
|
|
|
48,119 |
|
|
|
27,914 |
|
Equity based compensation |
|
|
160,337 |
|
|
|
295,980 |
|
|
|
999,309 |
|
|
|
1,651,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(3,898,290 |
) |
|
$ |
(1,463,124 |
) |
|
$ |
(8,857,668 |
) |
$ |
|
(6,144,447 |
) |
See also “Non-GAAP Financial Measures”, above.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240410504774/en/
Investor Relations:
ir@kidpik.com
Media:
press@kidpik.com
Source: Kidpik Corp.
FAQ
What was Kidpik's revenue for the fourth quarter of 2023?
What was Kidpik's net loss for the fourth quarter of 2023?
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