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Is a.k.a. Brands Holding Corp. (AKA) Stock Outpacing Its Retail-Wholesale Peers This Year?
ZACKS· 2024-08-29 14:40
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. a.k.a. Brands (AKA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.a.k.a. Brands is one of 209 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zack ...
Fast-paced Momentum Stock a.k.a. Brands (AKA) Is Still Trading at a Bargain
ZACKS· 2024-08-14 13:50
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...
Is a.k.a. Brands Holding Corp. (AKA) Outperforming Other Retail-Wholesale Stocks This Year?
ZACKS· 2024-08-13 14:40
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. a.k.a. Brands (AKA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.a.k.a. Brands is one of 209 companies in the Retail-Wholesale group. The Retail-Wholes ...
Can a.k.a. Brands (AKA) Climb 33.93% to Reach the Level Wall Street Analysts Expect?
ZACKS· 2024-08-12 14:55
a.k.a. Brands (AKA) closed the last trading session at $16.24, gaining 0.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $21.75 indicates a 33.9% upside potential.The average comprises four short-term price targets ranging from a low of $20 to a high of $25, with a standard deviation of $2.36. While the lowest estimate indicates an increase of 23.2% from the current price level, ...
a.k.a. Brands (AKA) - 2024 Q2 - Earnings Call Transcript
2024-08-08 02:49
a.k.a. Brands Holding Corp. (NYSE:AKA) Q2 2024 Earnings Conference Call August 7, 2024 4:30 PM ET Company Participants K.C. White - Chief of Legal & Head of People Ciaran Long - Interim Chief Executive Officer & Chief Financial Officer Conference Call Participants Randy Konik - Jefferies Eric Beder - SCC Research Ashley Owens - KeyBanc Operator Greetings, and welcome to a.k.a. Brands Holding Corp. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief ...
A.k.a. Brands (AKA) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2024-08-07 23:46
A.k.a. Brands (AKA) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.48 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 26.67%. A quarter ago, it was expected that this portfolio of online fashion brands would post a loss of $0.57 per share when it actually produced a loss of $0.85, delivering a surprise of -49.12%.Over the last four quarters, ...
a.k.a. Brands (AKA) - 2024 Q2 - Quarterly Report
2024-08-07 20:07
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 June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURI ...
a.k.a. Brands (AKA) - 2024 Q2 - Quarterly Results
2024-08-07 20:06
Net Sales Increased 9.5% Compared to the Second Quarter of 2023, with U.S. Net Sales Up 19.3% Active Customer Growth of 11.7% on a Trailing Twelve-Month Basis Compared to the Second Quarter of 2023 On Track to Open Five Princess Polly Stores in 2024 Exhibit 99.1 a.k.a. Brands Holding Corp. Reports Second Quarter 2024 Financial Results SAN FRANCISCO – August 7, 2024 – a.k.a. Brands Holding Corp. (NYSE: AKA), a brand accelerator of next generation fashion brands, today announced financial results for the quar ...
a.k.a. Brands (AKA) - 2024 Q1 - Earnings Call Transcript
2024-05-12 16:59
Financial Data and Key Metrics Changes - Net sales for Q1 2024 were $117 million, down 3% year-over-year, but only down 1% on a constant currency basis [19] - Adjusted EBITDA was $874,000, exceeding guidance, compared to $2.2 million in the same period last year [23] - Gross margin was 56.2%, slightly down from 56.9% year-over-year [21] - Total debt decreased by 22% to $103.6 million compared to $132.4 million a year ago [23] Business Line Data and Key Metrics Changes - U.S. business net sales increased by 6.2%, accounting for 66% of total net sales, a 10% penetration increase [10][19] - Australia and New Zealand region net sales declined by 19.1% [19] - Petal & Pup launched a wedding guest collection and expanded its omni-channel presence, contributing to strong performance [16][17] Market Data and Key Metrics Changes - Active customer growth was 5.5%, with 3.8 million active customers in Q1 [20] - Average order value decreased by 3.8% to $77 [21] - The U.S. market remains the most profitable growth region, while Australia and New Zealand face challenging macro conditions [10][32] Company Strategy and Development Direction - The company focuses on three strategic priorities: retaining existing customers, expanding omni-channel presence, and streamlining operations for financial benefits [11][12] - Plans to open three new Princess Polly stores in Q3 2024, indicating a commitment to physical retail expansion [14] - The test-and-repeat merchandising approach is central to the company's strategy, allowing for better inventory management and customer engagement [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities in the U.S. market, particularly for Culture Kings and other brands [30][32] - The company raised its net sales guidance for 2024 to a range of $545 million to $555 million, reflecting a strong start to the year [24][27] - Management anticipates gross margin expansion in the second half of the year as inventory management improves [25][32] Other Important Information - The company repurchased 106,153 shares for approximately $1.1 million during the quarter [24] - Inventory levels decreased by 19% to $91.5 million, indicating effective inventory management [23] Q&A Session Summary Question: Opportunities for more Culture Kings stores in the U.S. - Management sees potential for more Culture Kings stores in the U.S. but not at the same level as the Las Vegas flagship [30] Question: Inventory normalization expectations - Management expects small sequential improvements in inventory levels as the U.S. business continues to grow [34] Question: Intra-quarter cadence and active customer growth - Management noted strong momentum in Q1, particularly in the U.S., with active customer growth across all channels [37][39] Question: Performance of Australia and New Zealand - Management acknowledged challenges in Australia but is optimistic about transitioning Culture Kings to a test-and-repeat model [42] Question: Capital allocation strategy - Management prioritizes growth opportunities while continuing to pay down debt and invest in the business [46]
a.k.a. Brands (AKA) - 2024 Q1 - Quarterly Report
2024-05-08 20:09
[PART I - FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion for the quarter ended March 31, 2024 [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, reporting a net loss of $8.9 million Condensed Consolidated Balance Sheet Highlights (unaudited) | Account | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $133,611 | $135,695 | | **Total Assets** | $355,754 | $361,721 | | **Total Current Liabilities** | $82,489 | $85,961 | | **Total Liabilities** | $220,244 | $213,103 | | **Total Stockholders' Equity** | $135,510 | $148,618 | Condensed Consolidated Statements of Income (unaudited) | Metric | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net sales | $116,840 | $120,485 | | Gross profit | $65,674 | $68,500 | | Loss from operations | $(6,093) | $(6,551) | | Net loss | $(8,933) | $(9,553) | | Net loss per share (Basic & Diluted) | $(0.85) | $(0.89) | Condensed Consolidated Statements of Cash Flows Highlights (unaudited) | Activity | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,687) | $(2,960) | | Net cash used in investing activities | $(755) | $(1,880) | | Net cash provided by (used in) financing activities | $8,899 | $(11,443) | | **Net decrease in cash** | **$(133)** | **$(16,129)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, financial components, and disclosures, including revenue disaggregation and debt structure - The company has aggregated its four brands (Princess Polly, Petal & Pup, Culture Kings, mnml) into a single reportable segment due to similarities in products, processes, customers, and economic characteristics[38](index=38&type=chunk) Net Sales by Geography (in thousands) | Geography | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | U.S. | $77,138 | $72,626 | | Australia/New Zealand | $33,516 | $41,446 | | Rest of world | $6,186 | $6,413 | | **Total** | **$116,840** | **$120,485** | - As of March 31, 2024, the company had **$103.6 million** in total debt, consisting of a **$94.0 million** term loan and **$10.5 million** drawn on its revolving credit facility. The company was in compliance with all debt covenants[49](index=49&type=chunk)[51](index=51&type=chunk) - On September 29, 2023, the company effected a **one-for-12 reverse stock split** of its common stock. All share and per-share amounts for prior periods have been retrospectively adjusted[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 performance, noting a 3% net sales decrease to $116.8 million and a net loss of $8.9 million Key Operating Metrics | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Active customers (millions) | 3.83 | 3.63 | | Average order value ($) | $77 | $80 | | Number of orders (millions) | 1.52 | 1.50 | Key Financial Metrics (GAAP and Non-GAAP) | Metric | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Gross margin | 56% | 57% | | Net loss | $(8,933) | $(9,553) | | Adjusted EBITDA | $874 | $2,186 | | Adjusted EBITDA margin | 1% | 2% | - Net sales decreased by **3%** (**1%** on a constant currency basis) primarily due to a **4% decrease** in average order value, which was impacted by adverse macroeconomic conditions in Australia and New Zealand[106](index=106&type=chunk) - General and administrative expenses decreased by **$3.2 million** (**12%**), driven by lower sales tax penalties, professional fees, and intangible amortization[110](index=110&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity relies on $21.9 million cash and a senior secured credit facility, deemed sufficient for the next 12 months - Principal sources of liquidity as of March 31, 2024, were cash and cash equivalents of **$21.9 million**, a revolving line of credit, and a term loan accordion provision[113](index=113&type=chunk) - Net cash used in operating activities increased to **$7.7 million** in Q1 2024 from **$3.0 million** in Q1 2023, primarily due to increased inventory purchases compared to the prior period[119](index=119&type=chunk)[121](index=121&type=chunk) - Net cash provided by financing activities was **$8.9 million** in Q1 2024, a significant shift from the **$11.4 million** used in Q1 2023. This was mainly due to **$10.1 million** in net proceeds from the credit facility in 2024 versus net repayments in 2023[119](index=119&type=chunk)[125](index=125&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from market risk disclosures as a smaller reporting company under SEC regulations - As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to two unremediated material weaknesses in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2024, due to two unremediated material weaknesses[130](index=130&type=chunk) - The two material weaknesses are: (1) insufficient design, implementation, and documentation of internal controls at the entity level and across key processes, and (2) lack of appropriate segregation of duties in manual and IT-based processes[132](index=132&type=chunk) - Remediation efforts are ongoing, including hiring experienced personnel, engaging a third-party consulting firm, and implementing a new Enterprise Resource Planning (ERP) system to improve controls and enforce segregation of duties[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits for the reporting period [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary legal proceedings, with no material adverse impact expected, but a new copyright claim is noted - The company states that existing legal proceedings are not expected to have a material adverse impact on its financial position or results of operations[137](index=137&type=chunk) - In April 2024, the company received a cease and desist letter for alleged copyright infringement. While a loss is reasonably possible, the amount is not currently estimable[83](index=83&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported in this period - The company reports no material changes to the risk factors disclosed in its 2023 Form 10-K[138](index=138&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the company's share repurchase activity, with 113,959 shares repurchased in Q1 2024 Share Repurchase Activity (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Jan 2024 | 49,081 | $9.40 | | Feb 2024 | 37,501 | $10.24 | | Mar 2024 | 27,377 | $10.98 | | **Total** | **113,959** | **-** | - As of March 31, 2024, approximately **$1.8 million** remained available for future repurchases under the company's Share Repurchase Program[140](index=140&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q1 2024 - During the three months ended March 31, 2024, no directors or executive officers adopted or terminated a Rule 10b5-1 trading plan[143](index=143&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required certifications and XBRL data files