The following is a summary of the A.k.a Brands Holding Corp. (AKA) Q1 2024 Earnings Call Transcript:

Financial Performance:

• a.k.a Brands reported Q1 net sales of $117 million, with a US growth of more than 6% exceeding company guidance.

• The company delivered a positive adjusted EBITDA of $874,000 with a gross margin for the quarter at 56.2%.

• The company significantly reduced its debt by 22% from the previous year.

• Active customer growth reported during Q1 2024 was 5.5%.

• The company has raised the lower end of its net sales guidance range for the year to $545-555 million.

Business Progress:

• Flagship brand, Princess Polly, successfully launched an activewear collection and grew its global email and SMS subscriptions.

• Petal & Pup expanded its omni-channel marketplace presence with a successful launch on Nordstrom's website.

• Culture Kings U.S. business reported strong double-digit net sales growth in another consecutive quarter.

• New customer growth was driven by ratcheting up product categories and their test-and-repeat merchandising approach.

• The company is working on enhancing omni-channel strategies, including experiential stores, marketplaces, and wholesale channels, whilst driving operational efficiencies.

• They are confident of delivering consistent long-term growth in 2024 and have increased their focus on attracting new customers and enhancing online channels.

• Inventory build-up is expected in the US operations due to continued growth, while they anticipate further actions leading to a decrease in inventory in Australia.

• The first quarter ended with utmost momentum, especially in U.S sales, which grew by 6.2%, and significant expansion of its active customer base.

• An impressive Q1 performance is expected to give a strong start to Q2, while over 30% of customers walking into the Princess Polly store in L.A. are new to the brand.

• Continued focus on growth and brand investment, as well as improving their balance sheet by reducing debt. They will also make a capital expenditure of $10-12 million on growth and continue to pay down debt to avoid high leverage.

More details: a.k.a. Brands IR

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