A.k.a. Brands Holding Corp, the parent of Princess Polly, Culture Kings, mnml, and Petal & Pup., issued preliminary first-quarter results showing sales reached the high end of its previously provided outlook.
For the first quarter of 2023, the company expects to report the following:
- Net sales of approximately $120 million compared with guidance between $113 million and $116 million;
- Net loss of approximately $9.7 million to $9.6 million within management’s expectations; and
- Adjusted EBITDA of approximately $2.0 million to $2.2 million, exceeding its previously provided outlook of between $1.5 million and $1.8 million.
“I’m proud of our solid performance in the first quarter of 2023, which exceeded our expectations on both the top line and on an Adjusted EBITDA basis,” said Ciaran Long, interim CEO and CFO of a.k.a. Brands. “I’m pleased with the strength of our brands and our disciplined execution during the quarter. We remain laser-focused on balancing growth and profitability, and we are confident that our growth strategies, flexible operating model and talented teams will drive profitable growth.”
The company also reported that it received notice from the New York Stock Exchange (NYSE) on April 12, 2023, that the price of its common stock had fallen below the Exchange’s continued listing standard, which requires the average closing price of a listed company’s common stock to be at least $1.00 per share over a consecutive 30-day trading period.
The company said it plans to timely notify the NYSE that it intends to cure the deficiency, which could include, if necessary, effecting a reverse stock split, subject to approval by the company’s Board of Directors and stockholders. The company has six months after receiving the non-compliance notice to cure the deficiency. During the cure period, the company’s common stock would continue to be listed and traded on the NYSE.
