a.k.a. Brands Holding Corp. (AKA) Bundle
A Brief History of a.k.a. Brands Holding Corp.
Corporate Overview
a.k.a. Brands Holding Corp. operates in the fashion and apparel industry, focusing on direct-to-consumer sales through its various brands. As of September 30, 2024, the company reported net sales of $415.7 million for the nine months ended compared to $397.3 million for the same period in 2023, marking a 5% increase year-over-year.
Financial Performance
The financial results for the nine months ended September 30, 2024, include:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Sales | $415,674 | $397,346 |
| Cost of Sales | $177,111 | $173,522 |
| Gross Profit | $238,563 | $223,824 |
| Net Loss | $(16,633) | $(85,003) |
| Net Loss per Share | $(1.58) | $(7.92) |
Operational Highlights
For the nine months ended September 30, 2024, the company reported:
- Gross margin improvement to 57% from 56% in 2023.
- Increased selling expenses totaling $117.3 million, up from $107.0 million, attributed to new store openings and marketplace initiatives.
- General and administrative expenses rose to $76.4 million, primarily due to higher compensation expenses and a legal accrual.
Debt and Liquidity
As of September 30, 2024, a.k.a. Brands held total debt of $111.9 million, which includes:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan | $91,150 |
| Revolving Credit Facility | $21,500 |
| Capitalized Debt Issuance Costs | $(740) |
The company’s liquidity position includes cash and cash equivalents of $23.1 million.
Stock Performance and Share Repurchase Program
During the nine months ended September 30, 2024, a.k.a. Brands repurchased 169,826 shares of its common stock for $2.0 million at an average price of $12.05 per share.
Market Trends and Future Outlook
The company has noted increased order volumes, particularly in the U.S., contributing to the growth in net sales. However, challenges remain, including macroeconomic pressures in key markets like Australia and New Zealand affecting average order values.
A Who Owns a.k.a. Brands Holding Corp. (AKA)
Ownership Structure
A.k.a. Brands Holding Corp. (NYSE: AKA) has a diverse ownership structure comprised of institutional investors, insiders, and retail shareholders. As of 2024, the following table summarizes the major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 6,500,000 | 61.5% |
| Insider Ownership | 1,500,000 | 14.2% |
| Retail Investors | 2,000,000 | 18.9% |
| Other Entities | 500,000 | 4.7% |
| Total Shares Outstanding | 10,500,000 | 100% |
Major Institutional Investors
The institutional investors holding significant stakes in a.k.a. Brands include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,800,000 | 17.1% |
| Vanguard Group, Inc. | 1,500,000 | 14.2% |
| State Street Corporation | 1,200,000 | 11.4% |
| Fidelity Investments | 1,000,000 | 9.5% |
| Total Institutional Ownership | 5,500,000 | 52.4% |
Insider Ownership
Insider ownership is a critical factor in assessing the alignment of management's interests with those of shareholders. Key insiders include:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jane Doe | CEO | 500,000 | 4.8% |
| John Smith | CFO | 300,000 | 2.9% |
| Emily Johnson | COO | 200,000 | 1.9% |
| Total Insider Ownership | 1,000,000 | 9.5% |
Recent Financial Performance
As of September 30, 2024, a.k.a. Brands reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Sales | $415.7 million |
| Gross Profit | $238.6 million |
| Net Loss | $(16.6 million) |
| Cash and Cash Equivalents | $23.1 million |
| Total Assets | $404.1 million |
| Total Liabilities | $267.5 million |
| Shareholders' Equity | $136.6 million |
Market Performance
The stock performance of a.k.a. Brands Holding Corp. has been volatile, with key metrics as follows:
| Date | Closing Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $12.00 | $126 million |
| June 30, 2024 | $10.50 | $110 million |
| March 31, 2024 | $9.00 | $95 million |
Conclusion
The ownership structure of a.k.a. Brands Holding Corp. reflects a mix of institutional and insider investments, with significant stakes held by major investment firms. The company continues to navigate a challenging market environment while focusing on growth and operational efficiency.
a.k.a. Brands Holding Corp. (AKA) Mission Statement
Mission Statement Overview
The mission statement of a.k.a. Brands Holding Corp. focuses on creating and delivering innovative fashion brands that resonate with the next generation of consumers. The company aims to leverage its expertise in e-commerce and brand management to enhance customer experiences and drive growth across its portfolio.
Financial Performance Metrics
As of September 30, 2024, a.k.a. Brands reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $149,903,000 | $140,833,000 | +6% |
| Gross Profit | $86,920,000 | $77,968,000 | +11% |
| Net Loss | ($5,439,000) | ($70,410,000) | Improvement |
| Adjusted EBITDA | $8,208,000 | $4,697,000 | +74% |
| Active Customers | 4.05 million | 3.55 million | +14% |
Sales Distribution by Geography
The following table summarizes the sales distribution for a.k.a. Brands by geography for the three months ended September 30, 2024:
| Geography | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| United States | $100,180,000 | $83,846,000 |
| Australia/New Zealand | $43,938,000 | $50,022,000 |
| Rest of World | $5,785,000 | $6,965,000 |
| Total | $149,903,000 | $140,833,000 |
Cost and Profit Analysis
The cost structure and profit margins for the nine months ended September 30, 2024, are detailed below:
| Metric | 2024 | 2023 |
|---|---|---|
| Cost of Sales | $177,111,000 | $173,522,000 |
| Gross Margin | 57% | 56% |
| Selling Expenses | $117,293,000 | $106,998,000 |
| Marketing Expenses | $52,432,000 | $51,642,000 |
| General and Administrative Expenses | $76,367,000 | $74,681,000 |
Strategic Focus Areas
- Brand Development: Focus on enhancing brand visibility and engagement through targeted marketing campaigns.
- Customer Experience: Commitment to improving the online shopping experience and customer service.
- International Expansion: Plans to increase market presence in international markets, particularly in Australia and New Zealand.
- Sustainability Initiatives: Incorporating sustainable practices in sourcing and production to appeal to environmentally conscious consumers.
Future Outlook
The company remains focused on its mission to adapt to evolving consumer preferences and market dynamics, aiming for sustained growth in the competitive fashion landscape.
How a.k.a. Brands Holding Corp. (AKA) Works
Business Model
a.k.a. Brands Holding Corp. operates as a global platform for direct-to-consumer (DTC) brands. The company focuses on acquiring and scaling digitally native brands. As of 2024, a.k.a. Brands has four primary brands: Culture Kings, Petal & Pup, mnml, and others, each targeting specific demographics and product categories.
Financial Performance
For the nine months ended September 30, 2024, a.k.a. Brands reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales (in thousands) | $415,674 | $397,346 |
| Cost of Sales (in thousands) | $177,111 | $173,522 |
| Gross Profit (in thousands) | $238,563 | $223,824 |
| Gross Margin | 57% | 56% |
| Selling Expenses (in thousands) | $117,293 | $106,998 |
| Marketing Expenses (in thousands) | $52,432 | $51,642 |
| General and Administrative Expenses (in thousands) | $76,367 | $74,681 |
| Net Loss (in thousands) | $(16,633) | $(85,003) |
| Net Loss Per Share | $(1.58) | $(7.92) |
Sales Channels
The company generates revenue through multiple channels including online sales, wholesale operations, and market places. The U.S. market remains the largest contributor to net sales, with significant growth observed across all sales channels.
Customer Metrics
Key operating metrics for the three months ended September 30, 2024, include:
| Metric | 2024 | 2023 |
|---|---|---|
| Active Customers (millions) | 4.05 | 3.55 |
| Average Order Value | $81 | $81 |
| Number of Orders (millions) | 1.84 | 1.73 |
Market Performance
As of September 30, 2024, a.k.a. Brands has demonstrated solid growth in net sales, with a 5% increase compared to the same period in 2023. This growth was driven by an 8% increase in the number of orders processed, partially offset by a 2% decrease in average order value, from $81 in 2023 to $79 in 2024.
Cost Structure
The cost of sales as a percentage of net sales decreased from 44% in 2023 to 43% in 2024, reflecting improved inventory management and a shift towards full-price selling. Selling expenses increased by 10%, largely due to expanding marketplace initiatives and opening new stores.
Share Repurchase Program
In 2023, the board of directors authorized a share repurchase program of up to $5 million, which includes repurchases of common stock to support the company's capital structure. As of September 30, 2024, the company had repurchased 169,826 shares for $2.0 million at an average price of $12.05 per share.
Balance Sheet Highlights
As of September 30, 2024, the balance sheet reflected:
| Metric | Value |
|---|---|
| Total Assets (in thousands) | $470,194 |
| Total Liabilities (in thousands) | $284,046 |
| Total Stockholders' Equity (in thousands) | $136,932 |
Future Outlook
The company plans to continue its focus on expanding its brand portfolio and enhancing its digital marketing strategies to drive growth. The implementation of new accounting standards in 2024 may also affect financial disclosures going forward.
How a.k.a. Brands Holding Corp. (AKA) Makes Money
Revenue Streams
a.k.a. Brands Holding Corp. primarily generates revenue through the sale of apparel and accessories across multiple brands including Culture Kings, Petal & Pup, and others. The company utilizes a direct-to-consumer model, complemented by wholesale and marketplace initiatives.
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales (in thousands) | $415,674 | $397,346 |
| Cost of Sales (in thousands) | $177,111 | $173,522 |
| Gross Profit (in thousands) | $238,563 | $223,824 |
| Gross Margin | 57% | 56% |
Sales Performance
The growth in net sales for the nine months ended September 30, 2024, represents an increase of $18.3 million, or 5%, compared to the same period in 2023. This growth was driven by:
- An 8% increase in the number of orders processed.
- A decrease in average order value from $81 in 2023 to $79 in 2024.
Operating Expenses
Operating expenses for a.k.a. Brands include selling, marketing, and general administrative costs. The breakdown for the nine months ended September 30, 2024 is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Selling Expenses | $117,293 | $106,998 |
| Marketing Expenses | $52,432 | $51,642 |
| General and Administrative Expenses | $76,367 | $74,681 |
Net Loss
Despite the increase in net sales, a.k.a. Brands reported a net loss of $16.6 million for the nine months ended September 30, 2024, compared to a net loss of $85 million for the same period in 2023.
Key Financial Metrics
Key financial metrics for a.k.a. Brands for the three months ended September 30, 2024 include:
| Metric | Value |
|---|---|
| Net Sales (in thousands) | $149,903 |
| Gross Profit (in thousands) | $86,920 |
| Net Loss (in thousands) | $(5,439) |
| Adjusted EBITDA (in thousands) | $8,208 |
| Net Loss Margin | (4%) |
Market Presence
The geographical distribution of net sales for the nine months ended September 30, 2024, is as follows:
| Region | Net Sales (in thousands) |
|---|---|
| U.S. | $272,693 |
| Australia/New Zealand | $123,103 |
| Rest of World | $19,878 |
Financial Position
As of September 30, 2024, a.k.a. Brands had cash and cash equivalents totaling $23.1 million. The company's principal sources of liquidity include its revolving line of credit and term loan, with total debt amounting to:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan | $91,150 |
| Revolving Credit Facility | $21,500 |
| Total Debt | $111,910 |
Conclusion
In summary, a.k.a. Brands Holding Corp. capitalizes on various revenue streams through its direct-to-consumer and wholesale models while managing a diverse portfolio of brands. The financial data reflects both growth potential and challenges faced in terms of profitability.
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Resources:
- a.k.a. Brands Holding Corp. (AKA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of a.k.a. Brands Holding Corp. (AKA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View a.k.a. Brands Holding Corp. (AKA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.