Subscription-based clothing firm Kidpik posts drop in revenue and profit

Online subscription-based clothing company Kidpik Corp. revenue for the third quarter was 3.6 million dollars, a year over year decrease of 34.8 percent.

The company said in a statement that gross margin for the quarter was 60.3 percent, a 210 basis points increase from 58.2 percent in the third quarter of 2021.

Net loss was 2.4 million dollars or 32 cents loss per share, while adjusted EBITDA was a loss of 2.1 million dollars compared to a loss of 1.4 million dollars in the third quarter of 2021.

“Our third quarter results were, for the most part, consistent with our most recent earnings despite the increasingly challenging macro environment and the continued impact of changes in social media privacy policy on new customer acquisitions,” said Ezra Dabah, CEO, Kidpik.

The company added that active subscriptions (recurring boxes) decreased by 40.6 percent to 2.3 million dollars, new subscriptions (first boxes) decreased by 35.2 percent to 0.6 million dollars and total subscriptions decreased by 39.6 percent to 2.9 million dollars or 78.9 percent of total revenue.