a.k.a. Brands Grows Sales Almost 10 Percent, and Still Cannot Get Out of the Red
Princess Polly and Culture Kings' parent company posted its strongest US growth in years, then cut its full-year profit outlook anyway.
a.k.a. Brands, the holding company behind Princess Polly, Culture Kings, Petal & Pup, and mnml, reported third-quarter sales up 9.7% to $161.3 million, with US sales climbing 14% and group sales up 7.6% at constant currency. Gross margin improved to 60.1% from 59.1% a year earlier.
None of that kept the company out of the red. The net loss widened to $7.7 million from $5.0 million a year ago, even as adjusted EBITDA rose to $8.2 million from $7.0 million. The company pointed to $5.3 million in one-time costs tied to relocating a distribution center as part of the drag.
The bigger tell is the guidance cut: full-year adjusted EBITDA guidance narrowed to $29 million to $30 million from $30 million to $32 million, and revenue guidance tightened to $626 million to $632 million from $625 million to $635 million. Growth alone is not buying the company much patience from a market that wants to see the losses close, not just the top line climb.
Source: a.k.a. Brands Holding Corp.
Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →
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