A.K.A. Brands reports second-quarter sales miss
A.K.A Brands announced on Thursday preliminary financial results for the second quarter, highlighting a net sales increase of 6% or 11% in constant currency to $158.5 million for the three months ending June 30.
The owner of Princess Polly, Culture Kings and Mnml said it expects to post a net loss of $4.2 million for the June quarter. Adjusted EBITDA came in at $5.9 million, the San Francisco-based company added.
“We delivered double digit revenue growth in constant currency for the second quarter on top of tremendous growth last year. However, growth slowed from the prior quarter and net sales missed our expectations,” said Jill Ramsey, CEO, A.K.A. Brands.
“Sales were impacted by inflationary pressures on the consumer, shifts in spending and a slower than expected recovery in Australia. Additionally, lower return on marketing investments, a competitive promotional environment and higher merchandise returns led us to reduce our outlook for adjusted EBITDA.”
The company said it will provide an update on its revised fiscal 2022 outlook on its August 10 earnings call.
“Despite macro pressures, we remain encouraged by the strong growth in active customers as we continue to attract and retain consumers, particularly in the U.S,” added Ramsey.
“Although, we anticipate headwinds will continue through the remainder of the year, we expect sequential improvement in adjusted EBITDA rates as we optimize marketing investments, maintain disciplined inventory controls and tighten expenses. We remain highly confident that our strategies and the investments we are making will drive profitable growth long term due to our portfolio of strong digital brands, the flexibility of our business model and the talent of our teams.”
