The following is a summary of the A.k.a Brands Holding Corp. (AKA) Q1 2024 Earnings Call Transcript:
Financial Performance:
a.k.a Brands reported Q1 net sales of $117 million, with a US growth of more than 6% exceeding company guidance.
The company delivered a positive adjusted EBITDA of $874,000 with a gross margin for the quarter at 56.2%.
The company significantly reduced its debt by 22% from the previous year.
Active customer growth reported during Q1 2024 was 5.5%.
The company has raised the lower end of its net sales guidance range for the year to $545-555 million.
Business Progress:
Flagship brand, Princess Polly, successfully launched an activewear collection and grew its global email and SMS subscriptions.
Petal & Pup expanded its omni-channel marketplace presence with a successful launch on Nordstrom's website.
Culture Kings U.S. business reported strong double-digit net sales growth in another consecutive quarter.
New customer growth was driven by ratcheting up product categories and their test-and-repeat merchandising approach.
The company is working on enhancing omni-channel strategies, including experiential stores, marketplaces, and wholesale channels, whilst driving operational efficiencies.
They are confident of delivering consistent long-term growth in 2024 and have increased their focus on attracting new customers and enhancing online channels.
Inventory build-up is expected in the US operations due to continued growth, while they anticipate further actions leading to a decrease in inventory in Australia.
The first quarter ended with utmost momentum, especially in U.S sales, which grew by 6.2%, and significant expansion of its active customer base.
An impressive Q1 performance is expected to give a strong start to Q2, while over 30% of customers walking into the Princess Polly store in L.A. are new to the brand.
Continued focus on growth and brand investment, as well as improving their balance sheet by reducing debt. They will also make a capital expenditure of $10-12 million on growth and continue to pay down debt to avoid high leverage.
More details: a.k.a. Brands IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.