Kidpik FY revenue up, but Q4 impacted by new social media data rules

Kidswear subscription service Kidpik has reported an increase in annual revenue, but said changes in how data can be used by social media platforms impacted its trading in the fourth quarter.

In the three months to January 1, revenue dropped 10 percent year-over-year to 5.3 million dollars.

The company said that changes in data access and availability across social media advertising platforms impacted new customer acquisition in the quarter.

It said those changes have prompted the company to “pursue new marketing channels to re-accelerate membership growth”.

“We are implementing a paid influencer campaign, exploring Connected TV and other advertising channels to communicate our convenient and free, personalized styling service,” said CEO Ezra Dabah.

“While we anticipate these challenges may remain in place in the near term, we are excited about the growth opportunities in front of us,” he said.

Kidpik reported a net loss of 1.9 million dollars in the fourth quarter, or a 0.28 dollar loss per share. Its gross margin increased 120 basis points to 58.7 percent.

For the full year, revenue at the company increased 28.9 percent to 21.8 million dollars.

It reported an annual net loss of 5.9 million dollars, or a 1.05 dollar loss per share. Its gross margin increased 110 basis points to 59.5 percent.