Culture Kings parent AKA reports lower sales on mixed ANZ and US performance

(Source: Culture Kings)

AKA Brands, parent of fashion retailer Culture Kings, has posted lower sales for the first quarter, driven by poor performance in Australia and New Zealand, offset by positive growth in the US.

The company’s net sales fell 3 per cent to US$116.8 million, down 1 per cent on a constant currency basis.

The decrease was driven by a 19.1 per cent decline in Australia and New Zealand, where the average order value also dropped amid adverse macroeconomic conditions.

Meanwhile, net sales in the US rose 6.2 per cent. Sales in the remaining markets were down 3.5 per cent.

The company’s net loss narrowed to $8.9 million from $9.6 million last year. Adjusted EBITDA was $0.9 million compared to $2.2 million in prior year.

“This year is off to a great start, and I’m pleased that we delivered a solid first quarter that exceeded the high end of our net sales and adjusted EBITDA outlook,” said Ciaran Long, interim CEO and CFO of AKA.

“Our brands continued to deliver innovative retail strategies in the first quarter, including Princess Polly’s well-received introduction of an activewear collection, a strong launch of Petal & Pup on Nordstrom’s website, further expanding our omni-channel marketplace presence, and another quarter of strong double-digit net sales growth in our Culture Kings US business.”

For the full year, the company expects net sales of $545-555 million and adjusted EBITDA of $17-19 million.

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