A.k.a. Brands FY23 losses narrow but sales fall

A.k.a. Brands, the parent company of labels like Princess Polly, Culture Kings and Petal & Pup, has issued its financial results for the fiscal year ending December 31, 2023, as well as for the fourth quarter of the period.

For the year as a whole, the group saw sales drop by 10.7 percent to 546.3 million dollars, compared to 611.7 million dollars in the year prior. This represented an 8.7 percent decrease on a constant currency basis.

Despite this, losses narrowed for the group, dropping from 176.7 million dollars in 2022 to 98.9 million dollars, or 18.1 percent of net sales. The company’s adjusted EBITDA, meanwhile, came to 13.8 million dollars, down from 31.9 million dollars.

Sales also fell in the fourth quarter, dropping a more subtle 0.1 percent to 148.9 million dollars. This was countered, however, by an 11.6 percent increase in net sales in the US – marketing the second consecutive quarter of growth in the company’s largest market.

Net loss also dropped, coming to 13.9 million dollars compared to its prior report of 173.9 million dollars, while adjusted EBITDA stood at 1.3 million dollars.

Princess Polly prepares for retail and market expansion

Its gross margin for the period was 51.3 percent, compared to 52.8 percent in the previous year, with the decline primarily due to “targeted discounting in Culture Kings Australia” and a higher merchandise return rate.

For the full year fiscal 2024, the company forecasted net sales to be between 540 million and 555 million dollars, while its adjusted EBITDA is expected to sit in the range of 16 and 18 million dollars.

Looking to the year ahead, interim CEO and CFO Ciaran Long said in a release: “As we look ahead, we will continue to deepen our relationships with customers by delivering fashion newness, launching new categories and leveraging innovative technologies.

“Additionally, based on the success of our omnichannel tests in 2023, we are expanding our omni channel initiatives in 2024 with the opening of three to four Princess Polly stores and new marketplace and wholesale opportunities to attract new customers and expand our total addressable market. And lastly, we remain committed to streamlining our operations to deliver long-term profitable growth.”