Home News US’ a.k.a. Brands net sales soar to $611.7 mn in FY22

US’ a.k.a. Brands net sales soar to $611.7 mn in FY22

0
US’ a.k.a. Brands net sales soar to $611.7 mn in FY22

[ad_1]

US-based digital fashion company a.k.a. Brands Holding Corp has registered an 8.8 per cent increase in net sales to $611.7 million in fiscal 2022 (FY22), compared to $562.2 million in the previous year. However, the net loss for the year was $176.7 million or $1.37 per share, as compared to a net loss of $6 million or $0.06 per share in the previous year.

On an adjusted basis, the net loss in FY22 was $5.7 million or $0.04 per share, as compared to net income of $14.2 million or $0.15 per share in the previous year.

US-based digital fashion company a.k.a. Brands Holding Corp has registered an 8.8 per cent increase in net sales to $611.7 million in fiscal 2022 (FY22), compared to $562.2 million in the previous year. However, the net loss for the year was $176.7 million or $1.37 per share, as compared to a net loss of $6 million or $0.06 per share in the previous year.

Adjusted EBITDA in FY22 was $31.9 million, or 5.2 per cent of net sales, compared to $62.4 million, or 11.1 per cent of net sales in the previous year.

In the fourth quarter (Q4) of fiscal 2022, a.k.a. Brands reported an 18.3 per cent decrease in net sales to $149.1 million, compared to $182.4 million in the same period last year. The decrease was driven by a 14 per cent decrease in the number of orders processed and an 8 per cent decrease in the average order value during the quarter. The decrease in orders and average order value was due to lower marketing spend and a lower mix of full priced items sold.

The company also reported a decline in gross margin in Q4 FY22 to 52.8 per cent, compared to 54.6 per cent in the same period last year, primarily due to a lower mix of full priced items sold. Selling expenses were $39 million, compared to $45.5 million in the same period last year, while marketing expenses were $15.4 million, compared to $21.5 million in the same period last year.

Adjusted EBITDA in Q4 FY22 was $6.1 million, or 4.1 per cent of net sales, compared to $16.1 million, or 8.8 per cent of net sales in the fourth quarter of FY21.

For FY23, a.k.a. Brands expects net sales between $570 million and $600 million, and adjusted EBITDA between $35 million and $37 million. For the first quarter of FY23, the company expects net sales between $113 million and $116 million, and adjusted EBITDA between $1.5 million and $1.8 million.

“I want to recognise our brands and teams for their unwavering dedication in 2022 in the face of external pressures and a dynamic environment,” said Jill Ramsey, CEO. “As we went through the quarter, we saw lower marketing effectiveness given the highly promotional environment, and we made the strategic decision to reduce our spend compared to last year in an effort to balance growth and profit. Additionally, as we aggressively tightened our inventory in the second half of the year, there were fewer new styles in our women’s brands during the peak holiday selling period. These decisions, combined with the macroeconomic pressures, impacted our performance in the quarter but enabled us to protect the integrity and durability of our brands and business model for the long term.”

Fibre2Fashion News Desk (DP)

[ad_2]

Source link