A.K.A. Brands sales fall 3% in Q1 despite US sales growth

A.K.A. Brands announced on Thursday net sales decreased 3% to $116.8 million during the first quarter, on the back of lacklustre sales in overseas markets and despite U.S. sales growth. 

The San Francisco-based company said the sales decrease was driven by a decline in the average order value during the quarter, primarily due to adverse macroeconomic conditions in Australia and New Zealand. 

That was partially offset by the U.S., where net sales increased 6.2% compared to the first quarter of 2023. The owner of Mnml, Princess Polly, and Culture Kings, among others, recorded a net loss of $8.9 million, or $0.85 per share during the quarter, ended March 31, 2024.

Notable brand highlights include the expanded distribution of Petal & Pup on Nordstrom’s website, as well as another quarter of strong double-digit net sales growth for its Culture Kings U.S. business. 

“2024 is off to a great start, and I’m pleased that we delivered a solid first quarter that exceeded the high end of our net sales and adjusted EBITDA outlook. We continue to deliver growth in the U.S. with net sales growth of 6.2% in the first quarter. Importantly, we also continue to attract and retain customers, and I’m proud that we grew our active customer base by 5.5% year over year,” said Ciaran Long, interim chief executive officer and chief financial officer.

“Our strong performance is a direct result of our teams’ steadfast execution of our strategic priorities, and I am grateful for their unwavering dedication and commitment to building next-generation brands for next generation consumers.”

Looking ahead, for the second quarter of 2024, the company expects net sales between $133 million and $138 million, while it expects net sales between $545 million and $555 million for the full-year 2024. 

The U.S. apparel firm also plans to open three Princess Polly stores in the third quarter including a store in the Scottsdale Fashion Square, a store on Newbury Street in Boston and another in the Fashion Valley Mall in San Diego.