A.K.A. Brands Holding Corp., a digital fashion company based in San Francisco, has reported a significant boost in net sales for the third quarter of 2021. The company, known for its fashion brands that cater to millennial and Gen-Z consumers, saw sales reach $161.8 million during this period, marking a remarkable 155% increase compared to the same quarter in 2020.

This surge in sales can be attributed to a 128% increase in the number of processed orders, which was largely driven by the growth of Princess Polly in the U.S. and the inclusion of Culture Kings. Additionally, there was a 13% growth in the average order value throughout the quarter.

However, despite the impressive sales growth, A.K.A. Brands recorded a net loss of $9.9 million, or a loss of $0.11 per share, for the third quarter. This stands in contrast to the net income of $7.1 million, or $0.10 per share, reported during the same period last year. A.K.A. Brands attributes this loss partly to the “inventory step-up amortization expense resulting from the acquisition of Culture Kings” earlier in the year.

Adjusted net income for the third quarter of 2021 amounted to $3.5 million, or $0.04 per share, compared to $7.1 million, or $0.10 per share, in the third quarter of 2020.

Despite the net loss, A.K.A. Brands expressed satisfaction with the overall results, highlighting the growth achieved across all brands and regions. Princess Polly experienced significant acceleration in the U.S., while the digital presence of Culture Kings in Australia and the U.S. continued to gain momentum.

Jill Ramsey, the CEO of A.K.A. Brands, expressed her contentment with the strong results, stating, “We are very pleased to have delivered strong results for our first quarter as a public company, fueled by growth across our diversified portfolio of brands. During the quarter, our brands generated growth across all regions, especially in the U.S., where net sales increased by 84% on a pro-forma basis. We also saw solid growth in Australia, despite the Covid-19 related lockdowns.”

Looking ahead, A.K.A. Brands intends to further accelerate the global growth of its brands by increasing customer awareness and leveraging its unique business model to drive long-term profitability and value. The company recently acquired the direct-to-consumer men’s streetwear brand Mnml for $48.6 million and made its initial public offering in September.

For the full fiscal year 2021, A.K.A. Brands anticipates net sales to fall between $550 million and $560 million, with adjusted EBITDA projected to be between $60 million and $62 million.

In conclusion, A.K.A. Brands Holding Corp. experienced a significant increase in net sales during the third quarter of 2021, driven by the growth of its brands and regions. Despite recording a net loss due to acquisition-related expenses, the company remains optimistic about its future prospects and aims to continue expanding its global presence.

Useful links:
A.K.A. Brands Holding Corp. Official Website
Princess Polly Official Website