a.k.a. Brands (AKA) - 2024 Q3 - Quarterly Results

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]