Kidpik reports widening Q2 loss as revenue drops

Kidpik, an online clothing subscription service for kids, has reported a drop in revenue and a widening loss in the second quarter of the year.

In the three months to July 2, revenue fell 33.4 percent to 3.8 million dollars, with CEO Ezra Dabah citing “continued weakness in new customer acquisition, partly due to a decline in industry-wide consumer confidence”.

Additionally, Dabah said changes in data access and availability across social media advertising platforms continued to impact the company’s new customer acquisition in the quarter.

To address that, Kidpik expanded its brand ambassador program, and is focused on its search platform strategy, leveraging its “robust database and other channels”, Dabah said.

On a more positive note, Dabah highlighted that new customer revenue and conversion rates increased over the past two months, while the company’s active subscriber base increased over the past month.

Kidpik reported a widening loss in the quarter of 1.57 million dollars compared to 1.4 million dollars a year earlier.