a.k.a. Brands (AKA) Q4 2023 earnings summary

Executive summary

• Q4 net sales were nearly flat YoY, with U.S. sales growth offset by softness in Australia and New Zealand; FY23 sales and Adjusted EBITDA declined YoY.

• Inventory fell 28% YoY by year-end, while debt was reduced by $50.7 million during FY23.

Financial highlights

• Q4 net sales decreased 0.1% to $148.9 million; constant-currency sales were flat. FY23 net sales decreased 10.7% to $546.3 million, or 8.7% constant currency.

• Q4 net loss was $13.9 million, or $1.31 per share, versus $173.9 million, or $16.26 per share, in Q4 2022; FY23 net loss was $98.9 million versus $176.7 million.

• Q4 Adjusted EBITDA was $1.3 million versus $6.1 million; FY23 Adjusted EBITDA was $13.8 million versus $31.9 million.

Outlook and guidance

• FY24 net sales expected at $540–$555 million; Adjusted EBITDA at $16–$18 million; weighted average diluted shares at 10.7 million; capex at $10–$12 million.

• Q1 2024 net sales expected at $108–$112 million; Adjusted EBITDA at $0.3–$0.7 million; weighted average diluted shares at 10.5 million.

• Guidance assumes current foreign exchange rates, opening three to four Princess Polly stores, and continued macroeconomic pressure, particularly in Australia and New Zealand.