Q3 2024 AKA Brands Holding Corp Earnings Call Transcript
Key Points
- Net sales growth surpassed expectations, reaching approximately $150 million, a 6.4% increase year over year.
- The US market showed strong performance with a 19.5% increase in net sales compared to the same period last year.
- Active customer base grew by 14% year over year, indicating strong customer traction.
- Gross margin reached 58%, the highest level in the past three years, highlighting operational efficiency.
- Adjusted EBITDA increased by 75% compared to the same period last year, reaching over $8 million.
- Sales in Australia and New Zealand contracted by 12% compared to the third quarter of 2023.
- Selling expenses increased to $41.9 million, up from $36.7 million in the third quarter of 2023.
- General and administrative expenses rose to 18.6% of net sales, partly due to a $2 million legal accrual.
- Inventory levels increased by 6% compared to the previous year, which could indicate potential overstocking risks.
- The company faces potential tariff impacts, with a significant portion of goods sourced from China.
Thank you for standing by. My name is Jay and I'll be your conference operator today. At this time, I would like to welcome everyone to the A K A brands Holding Corp third quarter, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session.
If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again.
But now let's turn the conference over to Emily head of investor relations. You may begin.
Good afternoon. Thank you for joining A K A brands third quarter, fiscal 2024 conference call to discuss the results released this afternoon, which can be found on our website at Ir dot A K A dash brands dotcom. With me on the call today is Jon Long Interim Chief Executive Officer and Chief Financial Officer.
Before we get started. I
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