Kidpik Corp., the online clothing subscription-based e-commerce company, reported sales of $3.8 million in the second quarter ended July 2, a year-over-year decrease of 33.4 percent.
Second Quarter 2022 Highlights
- Revenue, net was $3.8 million, a year-over-year decrease of 33.4 percent;
- Gross margin was 61.0 percent, a year-over-year increase of 70 basis points from 60.3 percent in the second quarter of 2021;
- Shipped items were 354,000 items compared to 579,000 shipped items in the second quarter of 2021;
- Average shipment keep rate of 69.2 percent, compared to 69.4 percent in the second quarter of 2021;
- Net loss was $1.6 million or $0.21 loss per share; and
- Adjusted EBITDA was a loss of $1.1 million compared to a loss of $1.2 million in the second quarter of 2021.
“New customer revenue and conversion rates increased over the past two months, and we have seen our active subscriber base increase over the past month. Kidpik’s second quarter results fell below our expectations due to continued weakness in new customer acquisition, partly due to a decline in industry-wide consumer confidence,” said Ezra Dabah, CEO, Kidpik.
“As we previously mentioned, the rate of our new customer acquisition has been impacted by privacy policies changes across social media. To address this challenge, we’ve expanded our brand ambassador program, and are focused on our search platform strategy, leveraging our robust database and other channels. Last week we introduced Kidpik Baby, adding sizes 12 and 18 months to our existing product offerings, which presents growth opportunities among existing and new subscribers. Additionally, we have re-launched our website, creating a streamlined shopping experience and an elevated brand image for the back-to-school season,” concluded Dabah.
