A.K.A. Brands recently announced that its net sales decreased 3 per cent to US $ 116.8 million during the first quarter, on the back of lacklustre sales in overseas markets and despite US sales growth.
The San Francisco-based company said the sales decrease was driven by a decline in the average order value during the quarter, primarily due to adverse macroeconomic conditions in Australia and New Zealand.
That was partially offset by the US, where net sales increased 6.2 per cent compared to the first quarter of 2023. The owner of Mnml, Princess Polly, and Culture Kings, among others, recorded a net loss of US $ 8.9 million, or US $ 0.85 per share during the quarter, ended 31st March 2024.
Notable brand highlights include the expanded distribution of Petal & Pup on Nordstrom’s website, as well as another quarter of strong double-digit net sales growth for its Culture Kings US business.
“2024 is off to a great start, and I’m pleased that we delivered a solid first quarter that exceeded the high end of our net sales and adjusted EBITDA outlook. We continue to deliver growth in the US with net sales growth of 6.2 per cent in the first quarter. Importantly, we also continue to attract and retain customers, and I’m proud that we grew our active customer base by 5.5 per cent year over year,” said Ciaran Long, interim chief executive officer and chief financial officer.
Looking ahead, for the second quarter of 2024, the company expects net sales between US $ 133 million and US $ 138 million, while it expects net sales between US $ 545 million and US $ 555 million for the full-year 2024.
The US apparel firm also plans to open three Princess Polly stores in the third quarter including a store in the Scottsdale Fashion Square, a store on Newbury Street in Boston and another in the Fashion Valley Mall in San Diego.
