A.K.A. Brands sales fall 3% in Q1 despite US sales growth

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For the first quarter, A.K.A. Brands reported a 3% drop in net sales, totaling $116.8 million. This was mostly due to slow sales in international markets, even though sales in the United States saw significant rise.

A drop in average order value during the quarter was attributed by the San Francisco-based company to difficult macroeconomic conditions in Australia and New Zealand. A 6.2% rise in net sales in the US compared to the first quarter of 2023 more than made up for this drop. Regardless, in the quarter ended March 31, 2024, the owner of many brands including Mnml, Princess Polly, Culture Kings, and others reported a net loss of $8.9 million, or $0.85 per share.

Among the most notable developments during the quarter were the continued strong double-digit net sales growth for its Culture Kings U.S. company and the expansion of Petal & Pup’s distribution on Nordstrom’s website.

The first quarter’s strong performance, which exceeded expectations for net sales and adjusted EBITDA, was acknowledged with delight by Ciaran Long, the interim chief executive officer and chief financial officer. Continued growth in the US, with 6.2% higher net revenues and 5.5% more active customers year over year, was long cited as the reason for the success. He lauded the hardworking teams for their consistent implementation of strategic goals, highlighting their part in creating brands for customers of the future.

Net sales for the whole year are projected to be between $545 million and $555 million, with A.K.A. Brands expecting a range of $133 million to $138 million for the second quarter of 2024. In addition, the American clothing company announced plans to open three Princess Polly stores in the third quarter, one each in Scottsdale Fashion Square, Boston’s Newbury Street, and San Diego’s Fashion Valley Mall. This will allow the company to increase its retail footprint.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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