NYSE$AKA

a.k.a. Brands Holding · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Delivered 8% growth in the U.S. and grew active customers by 23% compared to last year, and sequentially stabilized and improved profitability during the third quarter.

a.k.a. Brands Holding Corp. reported a decrease in net sales by 3.7% to $155.8 million compared to $161.8 million in the third quarter of 2021. Net loss was $(0.1) million or $0.00 per share, compared to a net loss of $(9.9) million or $(0.11) per share in the same quarter last year. Adjusted EBITDA was $9.2 million, compared to $18.5 million in the third quarter of 2021.

  • Net sales decreased 3.7% to $155.8 million, compared to $161.8 million in the third quarter of 2021; flat in Constant Currency.
  • Net loss was $(0.1) million or $0.00 per share, compared to net loss attributable to a.k.a. Brands Holding Corp. of $(9.9) million or $(0.11) per share in the third quarter of 2021.
  • Adjusted EBITDA was $9.2 million, or 5.9% of net sales, compared to $18.5 million, or 11.5% of net sales in the third quarter of 2021.
  • Active Customers Increased 23% on an LTM Basis Compared to the Same Period Last Year

Headline financials

Total Revenue

$156M

Previous: $162M-3.7%
EPS (adj)

-$0.01

Previous: $0.48-102.2%
Gross Margin

56.0%

Previous: 53.0%+5.7%
Adjusted EBITDA Margin

6.0%

Previous: 11.0%-45.5%
Active Customers

3.8M

Previous: 3.1+122580545.2%
Average Order Value

$85.00

Previous: $89.00-4.5%
Capital Expenditures

-$13.9M

Previous: -$4.72M-195.8%
Free Cash Flow

-$14.1M

Previous: -$14.6M+3.8%
Net Income

-$114K

Previous: -$9.89M+98.8%
Operating Income

$2.74M

Previous: $1.17M+135.4%
Gross Profit

$86.9M

Previous: $86.1M+0.9%
Cash & Equivalents

$31.1M

Previous: $54.4M-42.9%
Total Assets

$670M

Previous: $635M+5.5%

Revenue & EPS history

a.k.a. Brands · Revenue · Quarterly

$156M

Q3 2022-3.7%vs Q3 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

As a result of the significant incremental currency headwinds, the Company has adjusted its expectations for the fourth quarter of 2022. The Company now expects net sales between $158 million and $165 million, Adjusted EBITDA of between $11.2 million and $13.0 million, Equity-based compensation of approximately $2.5 million, Interest expense of approximately $2.6 million, and Weighted average diluted share count of 129 million.

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 Q3 2022

Historical avgQ3 2022

-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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