Culture Kings 街头服饰系列

Search documents
a.k.a. Brands (AKA) - 2025 Q1 - Earnings Call Transcript
2025-05-13 21:32
Financial Data and Key Metrics Changes - The company reported net sales of approximately $129 million, reflecting a growth of about 12% on a constant currency basis and 10.1% year-over-year [7][30] - Adjusted EBITDA for the first quarter was $2.7 million, a significant increase from $900,000 in the same period last year, with an adjusted EBITDA margin of 2.1% compared to 0.7% [10][33] - Gross margin expanded by 100 basis points to 57.2% compared to 56.2% in the same period last year, driven by higher full-price selling and improved inventory position [31][32] Business Line Data and Key Metrics Changes - The U.S. business grew by 14% year-over-year, marking the seventh consecutive quarter of growth [7][30] - Australia and New Zealand region saw revenue growth of over 6%, attributed to strategic initiatives and improved macro conditions [8][30] - Princess Polly, the largest brand, continues to perform strongly, with double-digit revenue growth driven by trend-forward styles and successful marketing campaigns [17][20] Market Data and Key Metrics Changes - The active customer base increased by nearly 8% over the trailing twelve months, reaching 4.13 million by the end of the first quarter [8][30] - Average order value rose to $78, reflecting a 1.3% increase compared to the previous year [30] - The company reported a total of 1.66 million orders in the first quarter, a 9.2% increase year-over-year [30] Company Strategy and Development Direction - The company is focused on expanding its total addressable market through direct-to-consumer channels and physical retail investments [15][19] - A three-pronged approach to tariffs includes leveraging relationships with partners in China, diversifying the supply chain, and selectively increasing prices [10][11][44] - The company aims to streamline operations and strengthen its financial foundation while navigating the current macro environment [16][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment and anticipates limited exposure to China by the fourth quarter [12][53] - The company expects solid demand trends to continue into the second quarter, with net sales projected between $154 million and $158 million [36][38] - Management believes the impact of tariffs will be transitory, with a return to normalized margins expected in the fourth quarter [47][48] Other Important Information - The company ended the first quarter with $26.7 million in cash and cash equivalents, an increase from $24.2 million a year ago [34] - Inventory at the end of the quarter was $94.4 million, a 3% increase compared to the previous year, well below the 10% net sales growth [35] - The company plans to open six additional stores in 2025, with three new stores expected in late Q2 [32][35] Q&A Session Summary Question: Can you provide insights on margins and the impact of tariffs? - Management discussed the diversified supply chain strategy and selective pricing actions to mitigate tariff impacts, expecting a return to normalized margins in Q4 [41][44][47] Question: What are the demand trends and growth expectations for the second half of the year? - Management indicated confidence in continued growth, particularly in the U.S., despite potential challenges in Australia due to tough comparisons [53][56] Question: How sustainable is the growth in the U.S. market? - Management expressed confidence in sustaining growth through new customer acquisition and expanding wholesale partnerships [61][64] Question: What are the long-term plans for store expansion? - Management confirmed that new stores are performing well and driving new customer growth, with plans to maintain current expansion pacing [72][73] Question: How is the company addressing cost profiles with new suppliers? - Management noted that while there may be slight differences in costs with new suppliers, they are confident in achieving competitive pricing and maintaining quality [67][69]