Kidpik (US:PIK)2024-08-19 20:15Financial Performance - Revenue for Q2 2024 was $1.1 million, a year-over-year decrease of 67.3%[2] - For the 13 weeks ended June 29, 2024, Kidpik Corp. reported revenues of $1,128,323, a decrease of 67.3% compared to $3,448,919 for the same period in 2023[11] - Gross profit for the 13 weeks ended June 29, 2024, was $746,746, down 64.0% from $2,076,356 in the prior year[11] - The net loss for Q2 2024 was $1.3 million or $0.67 per share, an improvement from a net loss of $2.0 million or $1.31 per share in Q2 2023[2] - The net loss for the 13 weeks ended June 29, 2024, was $1,301,450, compared to a net loss of $2,029,225 for the same period in 2023, representing a 35.9% improvement[11] - Subscription boxes revenue fell to $804,837 for the 13 weeks ended June 29, 2024, a decline of 69.1% from $2,607,543 in 2023[20] - Active subscriptions revenue from recurring boxes was $783,106 for the 13 weeks ended June 29, 2024, down 64.0% from $2,177,298 in the same period last year[22] - Total subscription boxes revenue for the 26 weeks ended June 29, 2024, was $2,321,502, a decrease of 58.4% from $5,579,110 in 2023[21] - Revenue from third-party websites dropped to $32,801 for the 13 weeks ended June 29, 2024, a decline of 92.3% from $426,914 in the same period last year[20] - Online website sales revenue decreased to $290,685 for the 13 weeks ended June 29, 2024, down 29.9% from $414,462 in 2023[20] - The company experienced a significant reduction in new subscriptions, with revenue from first boxes falling to $21,731, a decline of 94.9% from $430,245 in the same period last year[22] Operational Metrics - Gross margin improved to 66.2%, compared to 60.2% in Q2 2023[2] - Gross margin improved to 66.2% for the 13 weeks ended June 29, 2024, compared to 60.2% for the same period in 2023[15] - Shipped items decreased to 135,000, down from 290,000 in Q2 2023[2] - Shipped items decreased to 135,000 for the 13 weeks ended June 29, 2024, down from 290,000 in the same period last year[19] - Average shipment keep rate slightly decreased to 74.6%, compared to 75.1% in Q2 2023[2] - Average shipment keep rate was 74.6% for the 13 weeks ended June 29, 2024, slightly down from 75.1% in the same period last year[19] Cash Flow and Assets - Total current assets decreased to $4,640,840 as of June 29, 2024, from $6,027,482 as of December 30, 2023, a decline of 22.9%[12] - Total liabilities increased to $7,865,802 as of June 29, 2024, compared to $6,080,180 as of December 30, 2023, an increase of 29.4%[12] - Cash and restricted cash at the end of the period was $38,648, down from $162,759 at the end of the previous year, a decrease of 76.3%[13] - Net cash used in operating activities for the 13 weeks ended June 29, 2024, was $1,375,856, compared to $366,333 for the same period in 2023, indicating a significant increase in cash outflow[13] Merger and Strategic Initiatives - The merger with Nina Footwear is expected to close in Q4 2024, pending customary closing conditions[4] - Marketing expenditures for subscription services have been eliminated in anticipation of the merger[3] - The merger is anticipated to enhance Kidpik's revenue, cash flow, and overall prospects[4] - Kidpik will not hold an earnings call for Q2 2024 results due to the ongoing merger process[4] - The company is focused on maximizing returns from current inventory before the merger[3] Other Financial Metrics - Kidpik Corp. incurred interest expenses of $8,617 for the 13 weeks ended June 29, 2024, compared to $24,415 for the same period in 2023, a decrease of 64.7%[11] - The company recorded a bad debt expense of $26,928 for the 13 weeks ended June 29, 2024, down from $151,362 in the same period last year, reflecting improved receivables management[13] - The company reported a total of 1,951,638 weighted average common shares outstanding as of June 29, 2024, compared to 1,872,433 shares as of December 30, 2023[12]