Despite seeing revenue growth in its most recent quarter, brand accelerator a.k.a. Brands said Thursday in a press release that it missed its net sales target amid slowing sales growth.
“Sales were impacted by inflationary pressures on the consumer, shifts in spending and a slower than expected recovery in Australia,” CEO Jill Ramsey said in the San Francisco company’s preliminary earnings report.
In filing for its initial public offering (IPO) in 2021, the company noted that 52% of its revenue came from Australia, versus 36% from North America.
The company went public in September, raising $110 million in its IPO, selling 10 million shares at $11 per share. On Friday morning, a.k.a’s share price stood at $2.95, a 75% drop since its IPO.
“Additionally, lower return on marketing investments, a competitive promotional environment and higher merchandise returns led us to reduce our outlook for Adjusted EBITDA,” Ramsey added.
The report showed net sales growth of 6% to roughly $158 million compared to last year. The company said this is in addition to 76% growth last year “pro forma for the acquisition of Culture Kings.” In addition, a.k.a. said it expects a net loss of approximately $4.2 million and adjusted EBITDA3 of approximately $5.9 million.
Read more: Online Platforms On Tap For IPO Listings
Founded in 2018, a.k.a. Brands uses a retail platform to help a number of fashion brands reach their audience, primarily Generation Z and millennial shoppers. Its brands include Princess Polly, Culture Kings, mnml, Petal & Pup and Rebdolls.
The company’s final second quarter earnings are set to be released Aug. 10 following the close of markets.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
