Kidpik Q4 revenue down 10 percent, but losses narrow

Kidpik, an online clothing subscription service for children, has reported a 10 percent drop in revenue in the final quarter of the year, though it managed to narrow its losses.

Net revenue in the four months ended December 31 fell to 4.74 million dollars from 5.27 million dollars a year earlier, as the number of shipped items decreased to 374,000 from 477,000.

The company made a loss of 1.79 million dollars in the quarter, an improvement on the loss of 1.86 million dollars it posted in the prior year period.

For the full year, the company’s revenue fell 24.5 percent to 16.5 million dollars as the number of shipped items dropped to 1.5 million compared to 2.2 million a year earlier.

Chief executive Ezra Dabah noted that on a quarter-on-quarter basis, revenue increased 30.6 percent in Q4 as its net loss fell 26.4 percent despite a “very challenging macro environment”.

He also highlighted that the company started selling online at US retail giant Walmart during the quarter.

“We remain focused on increasing subscription box sales by acquiring new customers through performance-based digital channels, including content marketing and social media,” Dabah said.

He continued: “Our goal is to reduce cash burn and extend our operating runway, mainly by limiting new inventory purchases, which we believe will support our cash flow needs in the short term.”