a.k.a. Brands expects Q1 sales ahead of expectations
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US fashion group a.k.a. Brands said it expects first quarter sales to beat its previously announced guidance, and its net loss to be inline with expectations.
The San Francisco-based group, whose portfolio includes Princess Polly, Mnml, Petal & Pup, Rebdolls, and Culture Kings, said it now forecasts Q1 sales of around 120 million dollars, up from its previous estimate of between 113 million dollars and 116 million dollars.
Meanwhile, it expects to post a net loss of between 9.7 million dollars and 9.6 million dollars, which it said was “within management’s expectations”.
It also expects to report an adjusted EBITDA of between 2 million dollars and 2.2 million dollars, which would be ahead of its previous guidance of between 1.5 million dollars and 1.8 million dollars.
CEO and CFO Ciaran Long told investors he was “proud” of the “solid progress” the group made in the first quarter.
He said: “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.”
NYSE listing update
The company also announced it received notice from the New York Stock Exchange (NYSE) last week that the price of its common stock has fallen below the NYSE’s continued listing standard, which requires the average closing price of a listed company’s common stock to be at least 1 dollar per share over a consecutive 30-day trading period.
a.k.a. Brands said: “The company plans to timely notify the NYSE that it intends to cure the deficiency, which may include, if necessary, effecting a reverse stock split, subject to approval by the board of directors and stockholders of the company.”
It comes after the group’s share price fell sharply over the past year. In the 12 months ended December 31, the group’s net loss widened to 176.7 million dollars from 6 million dollars a year earlier.