a.k.a. Brands Q3 sales drop, but losses narrow

US fashion group a.k.a. Brands has reported a drop in sales in the first quarter of the year, but managed to reduce its losses.

In the three months to September 30, net sales fell 3.7 percent to 155.8 million dollars, and was flat on a constant currency basis.

The San Francisco-based company said sales were impacted by a decrease in the average order value during the quarter, primarily linked to changes in foreign currency rates.

Chief executive Jill Ramsey hailed the company’s continued strong performance in the US market, which posted growth of 8 percent in the quarter.

“And, I am pleased that we sequentially stabilized and improved our profitability during the third quarter despite the challenging macro environment,” she said.

a.k.a. Brands narrowed its net loss to 0.1 million dollars in the quarter, compared to a loss of 9.9 million dollars a year earlier.

Adjusted EBITDA was 9.2 million dollars, down from 18.5 million dollars a year earlier.

a.k.a. Brands, which debuted on the New York Stock Exchange last September, owns a portfolio of brands and retailers including Princess Polly, Petal & Pup, Rebdolls, Culture Kings, and Mnml.

The company lowered its Q4 outlook based on its first quarter results. It now expects sales of between 158 million dollars and 165 million dollars, and adjusted EBITDA of between 11.2 million dollars and 13 million dollars.

Ramsey said: “As we look ahead, we anticipate another challenging quarter, but I’m confident that we have great brands, next-generation merchandising and marketing strategies and the necessary discipline to deliver long-term growth.”