A.K.A. Brands predicts Q1 sales to beat, earnings stay inline
A.K.A Brands announced on Tuesday it predicts first-quarter net sales to total $120 million, beating the high end of its previous outlook of between $113 million and $116 million for the three months ending March 31.
The San Francisco-based company added that its quarterly earnings are on track to stay inline with prior guidance, confirming a net loss of approximately $9.7 million to $9.6 million, within management’s expectations.
The company also expects adjusted EBITDA of approximately $2 million to $2.2 million, exceeding the high end of its previously provided outlook of between $1.5 million and $1.8 million, according to a press release.
“I’m proud of our solid performance in the first quarter of 2023, which exceeded our expectations on both the top line and on an adjusted EBITDA basis,” said Ciaran Long, interim chief executive officer and chief financial officer of A.K.A. Brands.
“I’m pleased with the strength of our brands and our disciplined execution during the quarter. We remain laser-focused on balancing growth and profitability, and we are confident that our growth strategies, flexible operating model and talented teams will drive profitable growth.”
The owner of Culture Kings, Princess Polly and Mnml brands also announced that it received notice from the New York Stock Exchange on April 12 that the price of its common stock has fallen below the NYSE’s continued listing standard, which requires the average closing price of a listed company’s common stock to be at least $1.00 per share over a consecutive 30-day trading period.
The company said it plans “cure the deficiency, which may include, if necessary, effecting a reverse stock split,” subject to approval by the board of directors and stockholders of the company.
In the last year, the company’s share price has plummeted by more than 90%.
