Kidpik Corp. (“KIDPIK” or the “Company”), an online clothing subscription-based e-commerce company, today reported its financial results for the second quarter ended July 1, 2023.
Second Quarter 2023 Highlights:
- Revenue, net: was $3.4 million, a year over year decrease of 8.6%
- Gross margin: was 60.2%, a year over year decrease of 80 basis points from 61.0% in the second quarter of 2022
- Shipped items: were 290,000 items, compared to 354,000 shipped items in the second quarter of 2022
- Average shipment keep rate: increased to 75.1%, compared to 69.2% in the second quarter of 2022
- Net Loss: was $2.0 million or $0.26 per share
- Adjusted EBITDA: was a loss of $1.7 million (see “Non-GAAP Financial Measures”, below)
“During the 2nd quarter, we continued to execute our plan to reduce inventory levels, while maintaining our gross margin of about 60%. Our 2nd quarter earnings were, for the most part, consistent with our 1st quarter,” commented Ezra Dabah, CEO of Kidpik.
“We have elevated the look and feel of our brand for Back-to-School. Our creatives showcase the advancement, capturing the beauty of our collection and the confidence children feel while wearing Kidpik outfits. We invite you to visit kidpik.com and shop.kidpik.com to view our back-to-school collection and experience the technology that drives it,” concluded Mr. Dabah.
Kidpik Corp. Condensed Interim Statements of Operations (Unaudited) | ||||||||||||||||
For the 13 weeks ended | For the 26 weeks ended | |||||||||||||||
July 1,
| July 2,
| July 1,
| July 2,
| |||||||||||||
Revenues, net | $ | 3,448,919 | $ | 3,774,668 | $ | 7,478,397 | $ | 8,100,665 | ||||||||
Cost of goods sold | 1,372,563 | 1,473,380 | 2,991,789 | 3,207,294 | ||||||||||||
Gross profit | 2,076,356 | 2,301,288 | 4,486,608 | 4,893,371 | ||||||||||||
Operating expenses | ||||||||||||||||
Shipping and handling | 949,734 | 959,141 | 2,138,956 | 2,091,225 | ||||||||||||
Payroll and related costs | 1,094,135 | 1,346,744 | 2,205,236 | 2,945,980 | ||||||||||||
General and administrative | 2,024,871 | 1,552,890 | 4,049,435 | 3,483,783 | ||||||||||||
Depreciation and amortization | 12,426 | 6,654 | 23,113 | 12,319 | ||||||||||||
Total operating expenses | 4,081,166 | 3,865,429 | 8,416,740 | 8,533,307 | ||||||||||||
Operating loss | (2,004,810 | ) | (1,564,141 | ) | (3,930,132 | ) | (3,639,936 | ) | ||||||||
Other expenses | ||||||||||||||||
Interest expense | 24,415 | 7,925 | 49,605 | 29,600 | ||||||||||||
Other (income) expense | - | - | - | (286,795 | ) | |||||||||||
24,415 | 7,925 | 49,605 | (257,195 | ) | ||||||||||||
(2,029,225 | ) | (1,572,066 | ) | (3,979,737 | ) | (3,382,741 | ) | |||||||||
Provision for income taxes | - | - | - | - | ||||||||||||
Net loss | $ | (2,029,225 | ) | $ | (1,572,066 | ) | $ | (3,979,737 | ) | $ | (3,382,741 | ) | ||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic | (0.26 | ) | (0.21 | ) | (0.52 | ) | (0.44 | ) | ||||||||
Diluted | (0.26 | ) | (0.21 | ) | (0.52 | ) | (0.44 | ) | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 7,731,195 | 7,636,493 | 7,709,695 | 7,655,359 | ||||||||||||
Diluted | 7,731,195 | 7,636,493 | 7,709,695 | 7,655,359 | ||||||||||||
Kidpik Corp. Condensed Interim Balance Sheets | ||||||||
July 1, 2023 | December 31, 2022 | |||||||
(Unaudited) | (Audited) | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 158,141 | $ | 600,595 | ||||
Restricted cash | 4,618 | 4,618 | ||||||
Accounts receivable | 156,396 | 336,468 | ||||||
Inventory | 9,755,705 | 12,625,948 | ||||||
Prepaid expenses and other current assets | 897,194 | 1,043,095 | ||||||
Total current assets | 10,972,054 | 14,610,724 | ||||||
Leasehold improvements and equipment, net | 120,965 | 67,957 | ||||||
Operating lease right-of-use assets | 1,201,105 | 1,469,665 | ||||||
Total assets | $ | 12,294,124 | $ | 16,148,346 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,702,425 | $ | 2,153,389 | ||||
Accounts payable, related party | 1,538,902 | 1,107,665 | ||||||
Accrued expenses and other current liabilities | 419,683 | 587,112 | ||||||
Operating lease liabilities, current | 329,654 | 438,957 | ||||||
