NYSE$AKA

a.k.a. Brands Holding · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

a.k.a. Brands' first quarter performance exceeded expectations, with a raised full-year outlook and a reduction in inventory.

a.k.a. Brands reported a decrease in net sales by 18.8% to $120.5 million, but exceeded expectations on both sales and adjusted EBITDA. The company is focused on managing the business prudently, with inventory down 7% year-over-year and 11% since the end of fiscal 2022.

  • Net sales decreased by 18.8% to $120.5 million compared to the first quarter of 2022.
  • Net loss was $(9.6) million or $(0.07) per share, compared to net income of $1.5 million or $0.01 per share in the first quarter of 2022.
  • Adjusted EBITDA was $2.2 million, compared to $10.7 million in the first quarter of 2022.
  • Inventory is down 11% from the end of fiscal 2022 and down 7% from the first quarter last year.

Headline financials

Total Revenue

$120M

Previous: $148M-18.8%
EPS (adj)

-$0.84

Previous: $0.24-450.0%
Gross Margin

57.0%

Previous: 57.0%+0.0%
Adjusted EBITDA Margin

2.0%

Previous: 7.0%-71.4%
Active Customers

3.6M

Previous: 3.8M-5.3%
Average Order Value

$80.00

Previous: $83.00-3.6%
Number of Orders

1.5M

Previous: 1.8M-16.7%
Capital Expenditures

-$1.85M

Previous: -$2.61M+28.9%
Free Cash Flow

-$11.4M

Previous: -$1.08M-953.3%
Net Income

-$9.55M

Previous: $1.53M-726.4%
Operating Income

-$6.55M

Previous: $3.35M-295.6%
Gross Profit

$68.5M

Previous: $84.2M-18.6%
Cash & Equivalents

$30.2M

Previous: $41.2M-26.6%
Total Assets

$475M

Previous: $728M-34.7%
Stock-Based Comp

$1.94M

Previous: $1.37M+41.5%

Revenue & EPS history

a.k.a. Brands · Revenue · Quarterly

$120M

Q1 2023-18.8%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

For the second quarter of 2023, the Company expects net sales between $137 million and $140 million and Adjusted EBITDA between $5.5 million and $6.0 million. For the full year 2023, the Company is raising its outlook and now expects net sales between $575 million and $605 million and Adjusted EBITDA between $36 million and $38 million.

Tailwinds

  • Net sales between $137 million and $140 million for Q2 2023.
  • Adjusted EBITDA between $5.5 million and $6.0 million for Q2 2023.
  • Net sales between $575 million and $605 million for full year 2023.
  • Adjusted EBITDA between $36 million and $38 million for full year 2023.
  • Weighted average diluted share count of 130 million.

Headwinds

  • Outlook is based on assumptions, including foreign exchange rates remaining at current levels.
  • Outlook is based on assumptions, including a continued promotional environment.
  • The Company has not provided a quantitative reconciliation of its Adjusted EBITDA outlook to a GAAP net income outlook.
  • Reconciling items include future equity-based compensation expense, income taxes, interest expense and transaction costs.
  • These items are inherently variable and uncertain and depend on various factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.7%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-3.8%

Avg return

30 days after

57%

13 / 23 earnings

Positive

+59.5%

Q1 2025

Best reaction

-38.4%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%-7.6%-19.0%
Q4 2025-4.5%-3.9%+1.8%
Q3 2025+3.3%-1.3%-16.0%
Q1 2025+59.5%+55.3%+38.9%
Q4 2024-13.0%-19.5%-10.7%
Q3 2024-0.1%-14.9%-17.3%
Q2 2024+8.5%+19.0%+38.5%
Q1 2024+23.5%+53.1%-4.5%
Q4 2023-14.3%-26.1%-19.8%
Q3 2023-21.3%-20.3%+30.0%
Q2 2023-21.7%-30.4%-6.2%
Q1 2023+10.6%+6.7%+34.2%
Q4 2022-38.4%-45.4%-68.8%
Q3 2022+17.3%+27.6%+5.8%
Q2 2022+4.1%+19.5%+9.7%
Q1 2022-5.6%+9.8%+14.5%
Q4 2019-32.1%-43.6%-41.3%
Q4 2021-32.1%-43.6%-41.3%
Q3 2020+3.1%+10.8%-3.1%
Q2 2021+3.1%+10.8%-3.1%
Q4 2020+3.1%+10.8%-3.1%
Q3 2021+3.1%+10.8%-3.1%
Q1 2021+3.1%+10.8%-3.1%
Q2 2020
Q1 2020

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