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Sep 30, 2022

a.k.a. Brands Q3 2022 Earnings Report

Delivered 8% growth in the U.S. and grew active customers by 23% compared to last year, and sequentially stabilized and improved profitability during the third quarter.

Key Takeaways

a.k.a. Brands Holding Corp. reported a decrease in net sales by 3.7% to $155.8 million compared to $161.8 million in the third quarter of 2021. Net loss was $(0.1) million or $0.00 per share, compared to a net loss of $(9.9) million or $(0.11) per share in the same quarter last year. Adjusted EBITDA was $9.2 million, compared to $18.5 million in the third quarter of 2021.

Net sales decreased 3.7% to $155.8 million, compared to $161.8 million in the third quarter of 2021; flat in Constant Currency.

Net loss was $(0.1) million or $0.00 per share, compared to net loss attributable to a.k.a. Brands Holding Corp. of $(9.9) million or $(0.11) per share in the third quarter of 2021.

Adjusted EBITDA was $9.2 million, or 5.9% of net sales, compared to $18.5 million, or 11.5% of net sales in the third quarter of 2021.

Active Customers Increased 23% on an LTM Basis Compared to the Same Period Last Year

Total Revenue
$156M
Previous year: $162M
-3.7%
EPS
-$0.0106
Previous year: $0.48
-102.2%
Gross Margin
56%
Previous year: 53%
+5.7%
Adjusted EBITDA Margin
6%
Previous year: 11%
-45.5%
Active Customers
3.8M
Previous year: 3.1
+122580545.2%
Gross Profit
$86.9M
Previous year: $86.1M
+0.9%
Cash and Equivalents
$31.1M
Previous year: $54.4M
-42.9%

a.k.a. Brands

a.k.a. Brands

a.k.a. Brands Revenue by Geographic Location

Forward Guidance

As a result of the significant incremental currency headwinds, the Company has adjusted its expectations for the fourth quarter of 2022. The Company now expects net sales between $158 million and $165 million, Adjusted EBITDA of between $11.2 million and $13.0 million, Equity-based compensation of approximately $2.5 million, Interest expense of approximately $2.6 million, and Weighted average diluted share count of 129 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income