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Jun 30, 2023
a.k.a. Brands Q2 2023 Earnings Report
a.k.a. Brands' financial performance was affected by macroeconomic pressures, particularly in Australia, despite improvements in operating efficiencies and debt reduction.
Key Takeaways
a.k.a. Brands reported a decrease in net sales by 14.2% to $136.0 million compared to the second quarter of 2022. The U.S. net sales decreased by 2.8% but grew 12.3% on a two-year stack. The company reduced inventory by 16% since the end of fiscal 2022 and paid down $12.5 million of debt. Net loss was $(5.0) million, or $(0.04) per share.
Net sales decreased 14.2% to $136.0 million, driven by declines in orders and average order value, especially in Australia.
U.S. net sales decreased 2.8% year-over-year but showed 12.3% growth on a two-year stack.
The company reduced inventory by 16% since the end of fiscal 2022 and paid down $12.5 million of debt, strengthening the balance sheet.
Princess Polly is expanding its partnership with PacSun to 100 stores and will open its first store next month.
Revenue by Geographic Location
Forward Guidance
For the third quarter of 2023, the Company expects net sales between $138 million and $143 million and Adjusted EBITDA between $6 million and $8 million. For the full year 2023, the Company expects net sales between $555 million and $565 million and Adjusted EBITDA between $21 million and $25 million.
Positive Outlook
- Net sales are expected to be between $138 million and $143 million for Q3 2023.
- Adjusted EBITDA is projected to be between $6 million and $8 million for Q3 2023.
- Full year net sales are anticipated to be between $555 million and $565 million.
- Adjusted EBITDA for the full year is expected to range from $21 million to $25 million.
- The outlook assumes foreign exchange rates remain at current levels.
Challenges Ahead
- Continued macroeconomic pressures, specifically in the Australia Region, are expected to persist.
- The company's outlook is based on several assumptions, which may be subject to change.
- The company has not provided a quantitative reconciliation of its Adjusted EBITDA outlook to a GAAP net income outlook because it is unable to project certain reconciling items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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