US' a.k.a. Brands' sales drop 3.0% to $116.8 mn in Q1 FY24

In the US, net sales increased 6.2 per cent compared to the first quarter of 2023. Net loss was $8.9 million, or $0.85 per share in the first quarter of 2024, compared to net loss of $9.6 million, or $0.89 per share in the first quarter of 2023. Adjusted EBITDA was $0.9 million in the first quarter of 2024, compared to $2.2 million in the first quarter of 2023.

“2024 is off to a great start, and I’m pleased that we delivered a solid first quarter that exceeded the high end of our net sales and adjusted EBITDA outlook. We continue to deliver growth in the US with net sales growth of 6.2 per cent in the first quarter. Importantly, we also continue to attract and retain customers, and I’m proud that we grew our active customer base by 5.5 per cent year over year. Our strong performance is a direct result of our teams’ steadfast execution of our strategic priorities, and I am grateful for their unwavering dedication and commitment to building next-generation brands for next generation consumers,” said Ciaran Long, interim chief executive officer and chief financial officer.

“Our brands continued to deliver innovative retail strategies in the first quarter, including Princess Polly’s well-received introduction of an activewear collection, a strong launch of Petal & Pup on Nordstrom’s website, further expanding our omni-channel marketplace presence, and another quarter of strong double-digit net sales growth in our Culture Kings US business,” Long added.

Gross margin was 56.2 per cent, compared to 56.9 per cent in the first quarter of 2023. The decline was primarily driven by targeted inventory actions in Culture Kings Australia and the impact of growing wholesale and marketplace initiatives, the company said in a press release.

In the fourth quarter of fiscal 2024, selling expenses were $34.2 million, compared to $34.4 million in the first quarter of 2023. Selling expenses were 29.3 per cent of net sales compared to 28.6 per cent of net sales in the first quarter of 2023. Marketing expenses were $14.9 million, compared to $14.8 million in the first quarter of 2023. Marketing expenses were 12.7 per cent of net sales compared to 12.3 per cent of net sales in the first quarter of 2023.

Fibre2Fashion News Desk (RR)