Kidpik (PIK)2024-11-14 21:15Financial Performance - Revenue for Q3 2024 was $1.0 million, a year-over-year decrease of 69.2%[2] - Kidpik Corp. reported net revenues of $1,042,648 for the 13 weeks ended September 28, 2024, a decrease of 69% compared to $3,389,183 for the same period in 2023[17] - Total revenue decreased by 69.2% to $1,042,648 for the 13 weeks ended September 28, 2024, down from $3,389,183 in the prior year[23] - Total revenue for the 39 weeks ended September 28, 2024, was $4,410,276, a decrease of 59.4% from $10,867,580 in the same period last year[25] - Subscription box revenue for the 13 weeks ended September 28, 2024, was $757,697, a decline from $2,427,615 in the same period last year[17] - Subscription box revenue fell by 68.8% to $757,697 for the 13 weeks ended September 28, 2024, compared to $2,427,615 in the same period last year[23] - Revenue from girls' apparel decreased by 70.3% to $773,031 for the 13 weeks ended September 28, 2024, compared to $2,599,762 in the prior year[24] - The company experienced a significant decline in revenue across all product lines, with boys' apparel down 64.0% to $231,362 for the 13 weeks ended September 28, 2024[24] Profitability and Loss - Net loss was $0.9 million or $0.45 per share, an improvement from a net loss of $1.9 million or $1.20 per share in Q3 2023[2] - Operating loss for the 13 weeks ended September 28, 2024, was $(819,929), compared to $(1,903,834) for the same period in 2023[16] - Net loss for the 39 weeks ended September 28, 2024, was $(3,958,805), compared to $(5,905,688) for the same period in 2023[16] - The gross profit for the 13 weeks ended September 28, 2024, was $715,342, down from $2,071,499 in the prior year, reflecting a gross margin decline[17] Operational Metrics - Shipped items decreased to 107,000, down from 292,000 in Q3 2023[2] - Average shipment keep rate fell to 67.7%, compared to 82.6% in Q3 2023[2] - Active subscriptions for recurring boxes dropped by 63.6% to $716,781 for the 13 weeks ended September 28, 2024, from $1,971,223 in the prior year[23] - New subscriptions for the first box fell by 91.0% to 40,916 for the 13 weeks ended September 28, 2024, compared to 456,392 in the same period last year[23] Merger and Acquisition - The merger with Nina Footwear Corp. is expected to close in Q1 2025, pending customary closing conditions[5] - Marketing expenditures for subscription services have been eliminated as part of the merger preparation[3] - The merger is anticipated to enhance Kidpik's revenue, cash flow, and stockholder value[4] - A preliminary proxy statement has been filed with the SEC as part of the merger process[3] - Kidpik will not hold an earnings call for Q3 2024 results due to ongoing merger activities[5] Balance Sheet - Total current assets decreased to $4,165,074 as of September 28, 2024, from $6,027,482 as of December 30, 2023[15] - Total liabilities increased to $8,152,255 as of September 28, 2024, compared to $6,080,180 as of December 30, 2023[15] - Cash and restricted cash at the end of the period was $7,823, down from $60,305 at the end of the previous year[16] - The weighted average common shares outstanding for the 13 weeks ended September 28, 2024, was 1,951,638, an increase from 1,604,454 in the same period last year[16] Gross Margin - Gross margin improved to 68.6%, compared to 61.1% in Q3 2023[2] - Gross margin improved to 68.6% for the 13 weeks ended September 28, 2024, compared to 61.1% for the same period last year[18]