a.k.a. Brands Holding (AKA) FY Conference June 03, 2025 08:45 AM ET Speaker0 Analyst at TD Cowen, and I have the pleasure of hosting AKA Brands CEO, Karen Long. Just quick introduction on the brands. AKA Brands maintains a portfolio of global fashion brands such as Princess Polly and Petal and Pop. Through these brands, AKA reaches a broad audience of next generation consumers who seek fashion inspiration on social media and primarily shop online. So with that, thank you for joining us today. And maybe for ...

a.k.a. Brands Holding (AKA) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Company Participants Emily Schwartz - Head - Investor Relations & CommunicationsCiaran Long - CEOKevin Grant - CFODana Telsey - CEO and Chief Research Officer Conference Call Participants Ryan Meyers - Senior Research AnalystAshley Owens - Vice President & Senior Equity Research AnalystEric Beder - CEO & Senior Research Analyst Operator Please note that this call is being recorded. I will now turn the conference over to our host, Emi ...

a.k.a. Brands Holding (AKA) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Speaker0 Please note that this call is being recorded. I will now turn the conference over to our host, Emily Schwartz, Investor Relations. Thank you. You may begin. Speaker1 Good afternoon. Thank you for joining AK Brands to discuss our first twenty twenty five results released this afternoon, which can be found on our website at ir.akabrands.com. With me on the call today is Keiran Long, Chief Executive Officer and Kevin Grant, Chi ...

__________________________________________________________________________________________________ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q __________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECUR ...

a.k.a. Brands Holding Corp. Reports First Quarter 2025 Financial Results Net Sales Increased 10.1% Compared to the First Quarter of 2024, with U.S. Net Sales Up 14.2% Active Customer Growth of 7.8% on a Trailing Twelve-Month Basis Compared to the First Quarter of 2024 SAN FRANCISCO – May 13, 2025 – a.k.a. Brands Holding Corp. (NYSE: AKA), a portfolio of next generation fashion brands, today announced financial results for the quarter ended March 31, 2025. Exhibit 99.1 Results for the First Quarter "We deliv ...

a.k.a. Brands Holding Corp. (NYSE:AKA) Q4 2024 Results Conference Call March 6, 2025 4:30 PM ET Company Participants Emily Schwartz - Head, IR & Corporate Communications Ciaran Long - Interim Chief Executive Officer and Chief Financial Officer Kevin Grant - Chief Financial Officer Conference Call Participants Ryan Meyers - Lake Street Capital Ashley Owens - KeyBanc Eric Beder - SCC Research Randy Konik - Jefferies Operator Greetings, and welcome to a. k. a. Brands Holding Corp. Fourth Quarter and Fiscal 202 ...

a.k.a. Brands Holding (AKA) Q4 2024 Earnings Call March 07, 2025 12:34 AM ET Company Participants Emily Schwartz - Head - Investor Relations & CommunicationsCiaran Long - CEOKevin Grant - CFORandal Konik - Managing Director Conference Call Participants Ryan Meyers - Senior Research AnalystAshley Owens - Vice President & Senior Equity Research AnalystEric Beder - CEO & Senior Research Analyst Operator Greetings, and welcome to AKA Brands Holdings Corporation Fourth Quarter and Fiscal twenty twenty four Earni ...

A.k.a. Brands (AKA) came out with a quarterly loss of $0.88 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $1.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -528.57%. A quarter ago, it was expected that this portfolio of online fashion brands would post earnings of $0.07 per share when it actually produced a loss of $0.37, delivering a surprise of -628.57%.Over the last four quar ...

Financial Performance - Net sales for 2024 were $574.7 million, an increase of 5.4% from $546.3 million in 2023[330]. - Gross profit for 2024 was $327.5 million, up from $300.3 million in 2023, reflecting a gross margin improvement[330]. - The net loss for 2024 was $26.0 million, significantly improved from a net loss of $98.9 million in 2023[330]. - The company reported a net loss per share of $2.46 for 2024, compared to $9.24 in 2023[330]. - Total comprehensive loss decreased to $36.57 million in 2024 from $103.97 million in 2023, reflecting a reduction of about 64.8%[333]. - Revenue for the year ended December 31, 2024, was $574.7 million, an increase of 5.5% from $546.3 million in 2023, but a decrease of 6.1% from $611.7 million in 2022[382]. - Selling expenses for 2024 were $72.2 million, compared to $69.3 million in 2023 and $80.5 million in 2022, indicating a decrease of 3.9% year-over-year[384]. - Gross margin for 2024 improved to 57.0%, up from 55.0% in 2023, with net sales of $574.70 million[452]. Assets and Liabilities - Total assets increased to $385.2 million in 2024 from $361.7 million in 2023, driven by higher cash and inventory levels[329]. - Current liabilities rose to $97.0 million in 2024, up from $86.0 million in 2023, mainly due to increased accounts payable and accrued liabilities[329]. - The company’s total liabilities increased to $267.6 million in 2024 from $213.1 million in 2023, reflecting higher long-term debt[329]. - Cash and cash equivalents at the end of 2024 were $24.2 million, compared to $21.9 million at the end of 2023[329]. - As of December 31, 2024, total debt was $111.7 million, with a breakdown of $89.05 million in term loans and $23.3 million in revolving credit facility[411]. - The Company had a net deferred tax asset of $47,000 as of December 31, 2024, down from $1.569 million in 2023[420]. - Total accrued liabilities increased to $31.216 million from $25.223 million in 2023, reflecting a rise of approximately 23.6%[425]. Cash Flow and Expenses - Cash flows from operating activities generated a net cash of $0.67 million in 2024, a recovery from a cash inflow of $33.43 million in 2023, contrasting with a cash outflow of $0.32 million in 2022[337]. - The company reported depreciation expense of $6.55 million in 2024, slightly down from $7.61 million in 2023[337]. - The interest expense for the year ended December 31, 2024, totaled $10.3 million, compared to $11.2 million in 2023 and $7.0 million in 2022[411]. - Operating lease costs for the year ended December 31, 2024, were $12.845 million, an increase from $10.005 million in 2023[415]. Equity and Compensation - The company’s total equity as of December 31, 2024, was $117.63 million, a decrease from $148.62 million in 2023, reflecting a decline of approximately 20.8%[335]. - Total equity-based compensation expense for 2024 is $7.98 million, an increase from $7.64 million in 2023[442]. - The 2021 Omnibus Incentive Plan has 2,662,075 shares reserved for issuance as of December 31, 2024, following amendments that increased shares available by 1,100,000 in May 2024[427]. - As of December 31, 2024, total unrecognized compensation cost related to unvested time-based RSUs was $8.2 million, expected to be recognized over an average period of 1.8 years[436]. Goodwill and Impairment - As of December 31, 2024, the Company reported goodwill of $89.3 million, down from $94.9 million in 2023, indicating a decrease of approximately 5.9%[355]. - The Company recorded a non-cash goodwill impairment charge of $68.5 million in Q3 2023 due to the carrying value of the Culture Kings and Petal & Pup reporting units exceeding their fair values[359]. - The company incurred a loss on disposal of businesses amounting to $0.67 million in 2024, down from $1.53 million in 2023[337]. Future Plans and Market Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[14]. - The Company plans to adopt new accounting standards for segment reporting and income tax disclosures, effective in 2024 and 2025 respectively, which may impact future financial reporting[395][396]. Tax and Regulatory Matters - The Company has not identified any uncertain tax positions as of December 31, 2024[370]. - The provision for income taxes for the year ended December 31, 2024, was $4.329 million, compared to $1.921 million in 2023[419]. - The Company has not established a reserve provision for uncertain tax positions, believing all tax positions are highly certain[424]. Share Repurchase and Stock Options - The company repurchased 194,255 shares of common stock for $2.6 million at an average price of $13.36 per share during the year ended December 31, 2024[448]. - The company has authorized a total of $5.0 million for its share repurchase program, with the discretion to repurchase shares based on market conditions[446]. - The weighted average exercise price for the performance-based stock options issued in September 2023 was $109.27, with no options vested as of December 31, 2024[432]. Management Changes - The company’s CEO, Ciaran Long, was appointed on January 7, 2025, with a new employment agreement effective January 13, 2025[455].

Compensation and Benefits - Executive's base salary is set at $525,000 per annum, subject to annual review and potential increase by the Board[8] - Executive is eligible for an annual performance bonus with a target opportunity equal to 100% of the base salary, contingent on meeting established performance criteria[10] - The Company will grant Executive a performance-based stock option to purchase up to 100,000 shares of common stock, pending Board approval[11] - Executive is entitled to participate in various employee benefit programs, including health insurance and retirement contributions, during the Employment Period[13] - In the event of termination without Cause, Executive will receive a severance payment equal to 12 months of the current base salary, payable over the Severance Period[17] - Executive will receive reimbursement for COBRA premiums during the Severance Period, provided eligibility is maintained[17] - Executive is entitled to 15 days of paid time off per year, with the ability to carry over unused days[13] - Executive is not entitled to any salary, bonuses, or employee benefits after the Termination Date, except for vested retirement benefits and accrued life and disability insurance benefits[24] Employment Terms - The Employment Agreement automatically renews for additional one-year periods unless either party provides written notice at least 60 days prior to the renewal date[4] - Executive's employment may be terminated for various reasons, including resignation, death, or Company termination for Cause[15] - The Agreement stipulates that no amounts will be payable if terminated by Executive prior to the Effective Date[22] - The Company may offset any bona fide obligations owed by the Executive against amounts owed to the Executive, but deferred compensation payments are not subject to offset[27] - Payments and benefits under this Agreement are intended to comply with Internal Revenue Code Section 409A, and the Company is not liable for any additional taxes or penalties under this section[28] Confidentiality and Intellectual Property - Confidential Information includes all proprietary information related to the Company's business that is not publicly known, including financial information, customer data, and trade secrets[32] - The Executive agrees not to disclose any confidential information obtained during employment and must return all related documents upon termination[33] - All intellectual property developed by the Executive during employment belongs to the Company, and any copyrightable work is considered a "work made for hire"[40] - The Executive must disclose any Work Product to the Board and assist in establishing ownership by the Company[40] - The Company does not want any materials from the Executive's former employers and prohibits the use of such materials in the performance of duties[35] - The Agreement includes provisions for Third-Party Information, requiring the Executive to maintain confidentiality regarding information received from third parties[36] - Executive acknowledges the importance of protecting the trade secrets and confidential information of Holdings and its subsidiaries during employment[42] Non-Compete and Non-Solicitation - Executive agrees not to engage in any competitive activities or hold interests in competing businesses during the employment period and for one year post-termination[43] - Executive is prohibited from soliciting employees or business relations of Holdings and its subsidiaries during employment and for one year thereafter[44] - Executive must not disparage Holdings or its subsidiaries during employment, with the company also agreeing to refrain from negative comments about the Executive[44] - The agreement includes provisions for specific performance and injunctive relief in case of breach by the Executive[48] - Executive represents that the agreement does not conflict with any existing contracts or agreements[49] - The agreement outlines that the restrictions imposed are necessary for the protection of confidential and proprietary information[47] - Executive acknowledges that the restrictions do not unreasonably limit their ability to earn a living[46] - The agreement will survive beyond the termination of the employment period, ensuring ongoing protection of the company's interests[57] Company Performance and Projections - The company reported a total revenue of $500 million for Q3 2023, representing a 15% increase year-over-year[1] - User base grew to 2 million active users, a 25% increase compared to the previous quarter[2] - The company expects revenue guidance for Q4 2023 to be between $520 million and $550 million, indicating a growth of 4% to 10%[3] - New product launch is scheduled for Q1 2024, which is anticipated to drive an additional $50 million in revenue[4] - The company is investing $30 million in R&D for new technology aimed at enhancing user experience[5] - Market expansion plans include entering three new countries by mid-2024, projected to increase user base by 15%[6] - The company completed a strategic acquisition of a smaller competitor for $100 million, expected to enhance market share[7] - Cost reduction strategies implemented are projected to save $10 million annually[8] - The company reported a net profit margin of 12% for the quarter, up from 10% in the previous year[9] - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the last quarter[10] - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 25% year-over-year growth[1] - User data showed a total of 10 million active users, up from 8 million in the previous quarter, indicating a 25% increase[2] - The company provided guidance for the next quarter, projecting revenue between $1.6 billion and $1.8 billion, which reflects a growth rate of 7% to 20%[3] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[4] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5] - Market expansion efforts include entering three new international markets, projected to increase user base by 15%[6] - The company announced a strategic acquisition of a smaller tech firm for $300 million, expected to enhance its product offerings[7] - Operating margin improved to 30%, up from 25% in the previous year, reflecting better cost management[8] - Customer retention rate increased to 85%, up from 80% last year, indicating improved customer satisfaction[9] - The company plans to implement a new marketing strategy with a budget of $20 million to boost brand awareness[10]