a.k.a. Brands posts 14 percent drop in Q2 sales, revises FY outlook

US fashion group a.k.a. Brands has reported a 14.2 percent drop in sales in the second quarter.

The San Francisco-based company, whose portfolio includes Petal & Pup, Rebdolls, Culture Kings, and Mnml, made sales of 136 million dollars in the three months to June 30, down from 158.5 million dollars the prior year.

It said the decline in revenue was driven by a drop in number of orders and average order value during the quarter, which was primarily linked to “adverse macroeconomic conditions” in Australia.

On a constant currency basis, net sales were down 11 percent year-on-year.

Interim CFO Ciaran Long said in a statement: “The US performance was in line with our expectations, registering 80 million dollars of net sales in the second quarter and delivering 12 percent growth on a two-year basis.

“Despite the inline performance in the US, our overall net sales were dampened by continued macro pressures and consumer challenges in Australia.”

The company posted a net loss of 5 million dollars compared to a loss of 4.2 million dollars a year earlier.

a.k.a. Brands lowered its full-year outlook. It now expects sales of between 555 million dollars and 565 million dollars, compared to its previous guidance of between 575 million dollars and 605 million dollars.

It expects adjusted EBITDA of between 21 million dollars and 25 million dollars, compared to its previous guidance of between 36 million dollars and 38 million dollars.