A.K.A Brands sales up 116% on U.S. revenues, Culture Kings weighs in
A.K.A. Brands announced on Tuesday net sales grew 116% during the first quarter, a surge impacted by the acquisition of Australian streetwear retailer Culture Kings, which added $48.9 million in sales during the quarter.
The San Francisco-based company said net sales for the first quarter totalled $148.3 million, compared to $68.8 million in the first quarter of 2021, an uptick of 24% excluding revenue from newly acquired Culture Kings.
The owner of Culture Kings, Princess Polly and Mnml said the sales increase was driven by a 100% increase in the number of orders processed and 6% growth in the average order value during the quarter. Likewise, order numbers were primarily driven by the inclusion of Culture Kings and Mnml, as well as the growth of Princess Polly in the U.S., the company added.
“I am very proud of our first quarter performance, which exceeded our expectations. Net sales grew 116%, or 24%1 on a pro-forma basis, reflecting the power and agility of our next-gen business model as well as the strength of our diverse portfolio of brands,” said Jill Ramsey, chief executive officer, A.K.A. Brands.
“The U.S., which grew 54%1, made up the majority of our volume and was by far the fastest growing region. Our brands continued to execute next-gen merchandising and marketing strategies to drive greater awareness, which contributed to an outstanding 46% increase in active customers to over 3.8 million on a pro-forma basis. I am proud of our team and the strong results we delivered in the first quarter as we navigated through the continued impact of the global macro headwinds."
For the first quarter ending March 31, net income totalled $1.5 million or $0.01 per share, which was flat compared to net income attributable of $1.5 million or $0.02 per share in the first quarter of 2021.
Looking ahead, the company said it expects second quarter net sales between $173 million and $177 million.
"I am confident that we are well-positioned to deliver on our unique combination of strong growth and profitability for the quarters and years to come," added Ramsey.
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