a.k.a. Brands swings to full-year loss despite surging sales

Direct-to-consumer fashion platform a.k.a. Brands swung to a loss in 2021 despite a strong increase in sales.

In the year to December 31, the company reported a 160 percent increase in net sales to 562.2 million dollars, while it made a net loss of 6 million dollars compared to a profit of 14.8 million dollars a year earlier.

The company, which debuted on the New York Stock Exchange last September, made an adjusted EBITDA of 62.4 million dollars compared to 30.3 million dollars in 2020.

In the fourth quarter, net sales increased 157.7 percent year-over-year to 182.4 million dollars, while net income was 23,000 dollars, down from 5.3 million dollars a year earlier.

a.k.a. Brands made an adjusted EBITDA of 16.1 million dollars in the fourth quarter, up from 10.3 million dollars a year earlier.

The San Francisco-based company owns a number of brands and retailers, including Princess Polly, Petal & Pup, Rebdolls, Culture Kings, and Mnml.

CEO Jill Ramsey said in a statement: “2021 was a monumental year for a.k.a. brands, and our fourth quarter results exceeded expectations.”

She hailed the company’s particularly strong performance in the US, which reported growth of 101 percent, as well as a 61 percent increase in global active customers during the year.

“Our strong performance demonstrates the power of our platform as we continue to grow our brands through next generation merchandising and marketing,” he said.

For the full year fiscal 2022, a.k.a. Brands expects net sales of between 785 million dollars and 805 million dollars, and adjusted EBITDA of between 90 million dollars and 100 million dollars.