Company Overview - a.k.a. Brands (AKA) shares increased by 6% in the last trading session, closing at $16.14, following notable trading volume compared to typical sessions, despite a 7% loss over the past four weeks [1] - The company reported preliminary results for the quarter ending December 31, 2024, with total revenues of approximately $159 million, marking a 6.8% year-over-year increase from $148.9 million in Q4 2023 [2] - U.S. net sales reached around $96.1 million, reflecting a robust 21.6% growth from $79.1 million in the same period last year [2] Earnings Expectations - a.k.a. Brands is expected to report a quarterly loss of $0.14 per share, representing a year-over-year change of +89.3%, with revenues anticipated to be $159 million, up 6.8% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - a.k.a. Brands belongs to the Zacks Retail - Apparel and Shoes industry, where another company, Foot Locker (FL), closed the last trading session down 1.4% at $17.43, with a -10% return over the past month [4] - Foot Locker's consensus EPS estimate for the upcoming report has decreased by 0.9% over the past month to $0.72, reflecting a year-over-year change of +89.5%, and it currently holds a Zacks Rank of 4 (Sell) [5]

Core Insights - a.k.a. Brands Holding Corp. demonstrates resilience and innovation in a competitive retail environment, with strong preliminary results for Q4 2024 indicating growth potential [1][3] Financial Performance - Preliminary total revenues for Q4 2024 are approximately $159 million, a 6.8% increase year-over-year from $148.9 million in Q4 2023 [4] - U.S. net sales for Q4 2024 reached around $96.1 million, reflecting robust growth of 21.6% from $79.1 million in the same period last year [4] - Preliminary adjusted EBITDA for Q4 2024 is expected to be between $6 million and $6.2 million, significantly up from $1.3 million in Q4 2023 [5] - For fiscal 2024, preliminary revenues are $574.7 million, a 5.2% year-over-year increase from $546.3 million in fiscal 2023, surpassing previous guidance [6] - U.S. net sales for fiscal 2024 reached approximately $368.8 million, up 16.9% from $315.5 million in fiscal 2023 [6] - Adjusted EBITDA for the full year is expected to be between $23 million and $23.2 million, marking a notable increase from $13.8 million in fiscal 2023 [7] Strategic Initiatives - The company is focusing on direct-to-consumer and omnichannel strategies, with Petal & Pup expanding into 40 Nordstrom stores and plans for full presence in all Nordstrom locations by Spring [2] - Princess Polly is advancing its retail footprint with new store openings in California and a planned location in New York City [3] - a.k.a. Brands' strategy includes attracting new customers, retaining existing ones, and optimizing operations for financial efficiency, utilizing a test-and-repeat merchandising model [8] - The company is expanding into experiential retail stores, wholesale partnerships, and marketplaces to enhance brand visibility and reach new audiences [9] Market Position - Given its strong Q4 and fiscal 2024 performance, a.k.a. Brands is positioned as a strong market contender, with ongoing investments in retail and operational efficiencies [10]

Company Overview - a.k.a. Brands (AKA) shares increased by 16.8% to close at $19.57, following a strong trading volume, contrasting with an 18.5% loss over the past four weeks [1] - The company reported strong preliminary financial results for Q4 and fiscal year 2024, primarily driven by robust performance in the U.S. market [1] Financial Performance - The upcoming quarterly report is expected to show a loss of $0.16 per share, which is an improvement of 87.8% year-over-year [2] - Revenues are projected to be $154 million, reflecting a 3.4% increase from the same quarter last year [2] - The consensus EPS estimate for a.k.a. Brands has remained unchanged over the last 30 days, indicating stability in earnings expectations [3] Industry Context - a.k.a. Brands operates within the Zacks Retail - Apparel and Shoes industry, where Boot Barn (BOOT) is another key player [3] - Boot Barn's consensus EPS estimate has increased by 0.3% to $2.04, representing a 12.7% year-over-year change [4] - Boot Barn currently holds a Zacks Rank of 2 (Buy), while a.k.a. Brands has a Zacks Rank of 3 (Hold) [3][4]

Core Insights - The focus is on a business that has already experienced a positive inflection point, rather than potential turnarounds that are unnoticed by the market [1] Company Analysis - The article emphasizes the importance of identifying businesses that have shown significant improvement in performance, suggesting that such companies may present attractive investment opportunities [1]

Financial Data and Key Metrics Changes - Net sales reached approximately $150 million, a 6.4% increase year-over-year, with U.S. net sales growing 19.5% [8][34] - Gross margin expanded to 58%, the highest level in three years, up 260 basis points from 55.4% [10][37] - Adjusted EBITDA was $8.2 million, a 75% increase compared to the same period last year, with an adjusted EBITDA margin of 5.5% [10][41] - Active customer count rose 14% year-over-year to approximately 4.05 million [9][36] Business Line Data and Key Metrics Changes - Princess Polly and Petal & Pup brands continue to gain market share, with strong performance in direct-to-consumer channels [18][19] - Culture Kings reported triple-digit revenue growth for its in-house brand Loiter, driven by a test-and-repeat merchandising strategy [31][68] Market Data and Key Metrics Changes - U.S. market showed robust growth with a 19.5% increase in net sales, while Australia and New Zealand experienced a 12% contraction [34][35] - Total orders increased by 6.4% year-over-year to 1.84 million [35] Company Strategy and Development Direction - The company focuses on retaining existing customers and attracting new ones, evidenced by a 14% increase in the active customer base [13] - Expansion into physical retail locations and wholesale partnerships is a key strategy, with Princess Polly opening new stores and launching in Nordstrom [11][26] - The company aims to streamline operations for financial benefits while leveraging a multi-channel growth strategy [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and growth opportunities, raising the full-year net sales outlook to between $567 million and $572 million [45][47] - The company is confident in its inventory quality and readiness for the holiday season [43] Other Important Information - The company ended the quarter with $23.1 million in cash and cash equivalents and $111.9 million in debt [42] - A stock repurchase program was initiated, with 3,380 shares repurchased for approximately $83,000 [44] Q&A Session Summary Question: Guidance for Q4 and trends - Management indicated a slight increase in average order value (AOV) year-over-year, with growth primarily from order volume [49][51] Question: Expansion of marketplace and wholesale - Management confirmed openness to continued expansion in wholesale and marketplace opportunities, particularly for Petal & Pup [52][54] Question: Impact of tariffs and sourcing - Majority of products are imported from China, with efforts to reduce exposure and potential pricing adjustments if necessary [56][58] Question: Performance of the wholesale channel - All brands are performing well across various channels, with strong full-price selling and inventory management [59][60] Question: Learning from store openings - New store openings are performing ahead of expectations, with positive customer response and increased product offerings [63][64] Question: Test-and-repeat model for Culture Kings - About 50% of Culture Kings' products are exclusive in-house brands, with plans to expand the test-and-repeat model [67][68]

Group 1 - A.k.a. Brands reported a quarterly loss of $0.37 per share, significantly worse than the Zacks Consensus Estimate of $0.07, representing an earnings surprise of -628.57% [1] - The company posted revenues of $149.9 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 5.57%, and showing an increase from $140.83 million year-over-year [2] - A.k.a. Brands has surpassed consensus revenue estimates three times over the last four quarters, indicating a positive trend in revenue performance [2] Group 2 - The stock has increased approximately 206.1% since the beginning of the year, outperforming the S&P 500's gain of 24.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $153.6 million, while for the current fiscal year, the estimate is -$0.89 on revenues of $554.55 million [7] Group 3 - The Zacks Industry Rank places the Retail - Apparel and Shoes sector in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - A.k.a. Brands currently holds a Zacks Rank 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]

Customer Metrics - Active customers increased to 4.05 million in Q3 2024, up from 3.55 million in Q3 2023, representing a growth of 14.1%[73] - The brand portfolio targets Millennial and Gen Z consumers, focusing on social media for customer engagement and brand awareness[71] - The company aims to enhance customer retention through loyalty programs and effective marketing strategies[85] Financial Performance - Net loss for Q3 2024 was $5.44 million, a significant improvement from a net loss of $70.41 million in Q3 2023[76] - Adjusted EBITDA for Q3 2024 was $8.21 million, up from $4.70 million in Q3 2023, indicating a positive trend in operational performance[76] - Net sales for the three months ended September 30, 2024, increased by $9.1 million, or 6%, compared to the same period in 2023, driven by a 6% increase in the number of processed orders[92] - Gross profit for the three months ended September 30, 2024, increased by $9.0 million, or 11%, with a gross margin of 58%, up from 55% in the same period in 2023[94] - Net sales for the nine months ended September 30, 2024, increased by $18.3 million, or 5%, compared to the same period in 2023, driven by an 8% increase in the number of processed orders[101] - Gross profit increased by $14.7 million, or 7%, for the nine months ended September 30, 2024, with a gross margin of 57% compared to 56% in 2023[103] Expenses and Costs - Selling expenses increased by $5.2 million, or 14%, for the three months ended September 30, 2024, primarily due to the opening of additional stores[95] - General and administrative expenses rose by $3.2 million, or 13%, for the three months ended September 30, 2024, attributed to a $2.0 million accrual for a legal matter[97] - Selling expenses rose by $10.3 million, or 10%, for the nine months ended September 30, 2024, accounting for 28% of net sales[104] - General and administrative expenses increased by $1.7 million, or 2%, for the nine months ended September 30, 2024, representing 18% of net sales[106] - Cost of sales as a percentage of net sales decreased from 45% in September 2023 to 42% in September 2024, despite a flat dollar amount[93] Cash Flow and Liquidity - Free Cash Flow for the nine months ended September 30, 2024, was $(14.03) million, a decrease of $26.6 million compared to $12.58 million in the same period of 2023[81] - As of September 30, 2024, cash and cash equivalents totaled $23.1 million, with liquidity supported by a revolving line of credit and term loan[111] - The company owed a combined $91.2 million in term loan and accordion borrowings, with $21.5 million borrowed under the revolving line of credit as of September 30, 2024[112] - Net cash used in operating activities decreased by $24.4 million for the nine months ended September 30, 2024, primarily due to increased inventory purchases[116] - Net cash provided by financing activities increased by $54.5 million for the nine months ended September 30, 2024, mainly due to $18.2 million in net proceeds from the senior secured credit facility[118] Shareholder Actions - The board of directors approved a Share Repurchase Program, authorizing the repurchase of up to $2.0 million of common stock, followed by an additional $3.0 million in 2023[119] - During the three months ended September 30, 2024, the company repurchased 3,380 shares for $0.1 million at an average price of $24.66 per share[119] - For the nine months ended September 30, 2024, the company repurchased 120,579 shares for $1.3 million at an average price of $10.57 per share[119] Risks and Market Conditions - Macroeconomic factors such as inflation and elevated interest rates are identified as potential risks that could impact consumer spending and operational results[82] - (Provision for) benefit from income taxes changed by $4.2 million, or 110%, for the nine months ended September 30, 2024, reflecting an increase in the valuation allowance on deferred tax assets[109] - The benefit from income taxes changed by $3.2 million, or 97%, for the three months ended September 30, 2024, due to an increase in the valuation allowance on deferred tax assets in Australia[100] Accounting and Reporting - There have been no significant changes in critical accounting estimates from those reported in the 2023 Form 10-K[120] - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[121]

Financial Performance - Net sales increased 6.4% to $149.9 million in Q3 2024, compared to $140.8 million in Q3 2023, with U.S. net sales up 19.5% to $100 million[2] - Adjusted EBITDA rose to $8.2 million, a 75% increase from $4.7 million in Q3 2023, representing 5.5% of net sales[5] - Gross margin improved to 58.0%, up from 55.4% in Q3 2023, driven by more full-price selling[5] - The net loss for Q3 2024 was $5.4 million, significantly improved from a net loss of $70.4 million in Q3 2023[15][18] - Adjusted EBITDA for the nine months ended September 30, 2024, was $17.1 million, compared to $12.5 million for the same period in 2023[18] - Adjusted EBITDA for the three months ended September 30, 2024, was $8.21 million, with an adjusted EBITDA margin of 5.5%[23] - Net loss for the three months ended September 30, 2024, was $5.44 million, compared to a net loss of $70.41 million in the same period last year[23] - Net loss per share, as adjusted, was $(0.37) for the three months ended September 30, 2024[26] Customer Metrics - Active customer growth was 14.1% on a trailing twelve-month basis compared to Q3 2023[1] - Active customers increased to 4.05 million, a 14.1% growth year-over-year[19] - Total orders increased to 1.84 million, reflecting a 6.4% increase year-over-year[19] - Average order value (AOV) remained stable at $81 for the three months ended September 30, 2024, with a slight decline of 2.5% for the nine months[19] Expenses and Liabilities - Selling expenses increased to $41.9 million, or 27.9% of net sales, compared to 26.0% in Q3 2023[5] - Marketing expenses were $19.3 million, or 12.9% of net sales, slightly down from 13.1% in Q3 2023[5] - Operating expenses decreased to $89.0 million in Q3 2024 from $148.3 million in Q3 2023, primarily due to the absence of goodwill impairment[15] - Total liabilities rose to $267.2 million as of September 30, 2024, compared to $213.1 million at the end of 2023[16] Future Outlook - The company expects full fiscal 2024 net sales between $567 million and $572 million, and adjusted EBITDA between $22 million and $23 million[7] - The company expects long-term growth in adjusted EBITDA margin as it scales operations[22] Inventory and Cash Position - Cash and cash equivalents at the end of Q3 totaled $23.1 million, with inventory at $106.0 million[6] - Cash and cash equivalents at the end of Q3 2024 were $23.1 million, an increase from $21.9 million at the end of 2023[16][17] - Total current assets increased to $156.3 million as of September 30, 2024, up from $135.7 million at the end of 2023[16] Expansion Plans - Princess Polly plans to open its first NYC store in Soho in early 2025, following the opening of three stores in San Diego, Scottsdale, and Boston[1] - Petal & Pup expanded into 40 Nordstrom stores based on its success on Nordstrom.com[2]

Group 1: Company Overview - Viva Entertainment Group, Inc. is a developer of OTT systems that deliver television services via the Internet [1][8] - The company connects content owners and video distributors to provide premium content on smart devices [8] - Viva offers a platform for streaming live TV, TV shows, and movies on demand, accessible anywhere with a WiFi connection [8] Group 2: Recent Developments - Viva Entertainment has signed a deal with Urban Celebrity Boxing for all their events, indicating a strategic partnership to enhance content offerings [1] - DogDaddy.org has launched the first international livestream channel for dogs and dog lovers, featured on Viva's platform, Vivalivetv.com [2][3] Group 3: Community Engagement and Initiatives - DogDaddy.org has evolved from an information clearinghouse to an animal cruelty prevention organization, emphasizing its commitment to animal welfare [3][4] - The organization has been actively involved in pet food drives and has collaborated with local health departments to support businesses during the pandemic [5][6]

Release Date: August 07, 2024For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Net sales exceeded expectations with a year-over-year growth of more than 9%, driven by strong performance in the US market.The US business saw significant acceleration with net sales growth of over 19%, contributing to 64% of total net sales.Gross margin improved to 57.7%, up 80 basis points from the previous year, aided by reduced airfreight costs and strong ful ...