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Dec 31, 2023

a.k.a. Brands Q4 2023 Earnings Report

a.k.a. Brands reported results for the fourth quarter and full year 2023, with U.S. net sales growing approximately 12% compared to Q4 2022 and balance sheet strengthened through debt paydown.

Key Takeaways

a.k.a. Brands reported a slight decrease in net sales for Q4 2023, but experienced growth in U.S. net sales. The company focused on inventory reduction and debt paydown during the year. They are planning to expand omnichannel initiatives in 2024.

Net sales decreased slightly by 0.1% to $148.9 million compared to Q4 2022, but were flat on a constant currency basis.

U.S. net sales increased by 11.6% compared to the fourth quarter of 2022.

Net loss was $(13.9) million, compared to net loss of $(173.9) million in the fourth quarter of 2022.

Adjusted EBITDA was $1.3 million, compared to $6.1 million in the fourth quarter of 2022.

Total Revenue
$149M
Previous year: $149M
-0.1%
EPS
-$0.31
Previous year: -$0.36
-13.9%
Gross Margin
51.3%
Previous year: 53%
-3.2%
Adjusted EBITDA
$1.34M
Adjusted EBITDA Margin
0.9%
Previous year: 4%
-77.5%
Gross Profit
$76.5M
Previous year: $78.7M
-2.9%
Cash and Equivalents
$21.9M
Previous year: $46.3M
-52.8%
Free Cash Flow
$14.9M
Previous year: $5.3M
+180.8%
Total Assets
$362M
Previous year: $510M
-29.0%

a.k.a. Brands

a.k.a. Brands

a.k.a. Brands Revenue by Geographic Location

Forward Guidance

For the full year fiscal 2024, the Company expects net sales between $540 million and $555 million, Adjusted EBITDA between $16 million and $18 million, weighted average diluted share count of 10.7 million, and capital expenditures of approximately $10 million to $12 million.

Positive Outlook

  • Net sales between $540 million and $555 million
  • Adjusted EBITDA between $16 million and $18 million
  • Weighted average diluted share count of 10.7 million
  • Capital expenditures of approximately $10 million to $12 million
  • Opening of three to four Princess Polly stores

Challenges Ahead

  • Foreign exchange rates remaining at the current levels
  • Continued macroeconomic pressures
  • Macroeconomic pressures specifically in Australia and New Zealand
  • Unable to project certain reconciling items
  • These items are inherently variable and uncertain and depend on various factors

Revenue & Expenses

Visualization of income flow from segment revenue to net income