AKA - Earnings call transcript Q3 2021 | a.k.a. Brands Holding Corp.

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Operator

00:04 Ladies and gentlemen, welcome to the a.k.a. Brands Holding Corp’s Third Quarter Twenty Twenty One Earnings Conference Call. All phones are in a listen-only mode.

We will provide instructions at the end of the call on how to ask your questions. At this time I will turn the call over to Emily Goldberg, head of corporate communications. Emily. ahead, Go

Emily Goldberg

at everyone. Ciaran quarter afternoon, released for a.k.a. chief our joining afternoon, call on XX:XX Jill chief are, call Thank financial to third Ramsey, website on found conference can officer we With discuss Brands’ me which the and Good executive be you ir.akabrands.com. Long, the this results officer.

projections would Management or of the refer Harbor language. may Before events forward-looking and you to characterizations including we company underlying other remind expectations, get of future assumption. like to started which makes I statements guidance Safe

that comparable Forward of in statements. than Now, the cause margin. Non-GAAP we assume on XX:XX measures I to looking the This statements call adjusted over a and risks involve will looking our risks the to XX:XX please to to SEC such would most obligation expressed. no call EBITDA our results and measures further materially EBITDA with any uncertainties contain as furnished Jill. see turn differ to Please of such these website. to filings forward Non-GAAP earnings the could related SEC. to note For adjusted release, update GAAP financial are discussion actual Reconciliations those business, available measures, like the the included our

Jill Ramsey

Ciaran COVID-XX our strong our you up we'll call XX:XX strategies. our our across Good third and quarter, and highlights a discuss public results for drove and then full to even and brands, of then and the platform for the will an growth dynamics. quarter joining our teams. navigating proud through earnings talent excited then demonstrating brands overview the global thanks of and our outline of the provide our begin afternoon, with to first supply open financials as and year our chain power brands everyone, be company XX:XX strong us. performance. from the take We're growth our in while hosting of performance excited more strong details I'll and of our questions. delivered outlook, I'm our We it third

Making U. four third quarter eight XX:XX on sixty by our and fifty the Kings, increased Our percent net dollars last to all and proforma hundred and and S. achieved net four point third acquisition forty one one the percent sales net basis. sales across grew quarter, For hundred percent million of four the for growth one increased the U. year fifty sales percent from brands. grew customers Culture S. active eighty brands the regions, particularly across Where proforma a in five

market, continued fourth largest and momentum quarter. the into Our has

least we nine and closures, the As and by one our of in in Eighty their many further the vaccine on at Australian seven store has population vaccination encouraged due know, also to We restrictions resiliency percent are most lockdowns, rise our in for curfews quarter, Despite have and proving rollout XX:XX and was strict strong strength grew our lockdown Australia. business of top lockdown of teams. you year, trends been very Australia and reopening percent last of of COVID-XX. all received dose a almost lifted. growth brands see the agility

the more Kings rest to impacts Culture to continue our of sales Ciaran in open, while into by demand proforma grow. Europe and grew All COVID-XX is region. and also our a Kings and largely hundred Poly details Princess stores Culture Kings growing digital percent Asia. Turning on Zealand expansion on New Culture and one brands XX:XX now and provide traffic are rebounding, basis, will in world, for one driven of

for growth of the we with next of to fashion brands many strategy discussed you, accelerate and to months, which few is have past generation. mission the the consumer Over our direct

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U. quarter largest both Our buying XX:XX we strong first test growth Nextgen Polly the across our sharing network are and of all such repeat by creating pioneered which have led as Princess strategies influencer powerful S. They in micro brands, effective on brand expectations and across effects. and the outperformed platform. led regions, this marketing,

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it street high While proven brand and our share profitability a fit such position underserved of has strategic at price. small our term Rebdolls growth S. brand minimal in approach consumer a we surrounding A confident The globally. why mastered caters data have fit merchandising has now Turning in long and newest fashion a XX:XX in and and highlights brand following to transaction, S. and October. record today, touch growth space. that profitability as financial a the brand few attractive trends and join which provides and the minimal, to is to in has U. quality an loyal track brand after They Nextgen long and portfolio. marketing. platform, details direct our more to modern will men's and sought on a premium in employ the highly for to acquired And a is the driven are XX:XX Minimal Ciaran built affordable it potential we for is men's the a runway good a U. I'll bolster the but premier which quickly customer. a great

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on also that on store details to to working are more soon. We Culture Kings’ a and forward year look open plans next sharing

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strengths new customers. highly to influencers, which We're growing in capitalize to Our will on follow our brands are at new of masters acquiring content media customer our social we media as platforms also for network creation, and strategy micro like they popular continue leaning evolve. a traffic TikTok efficient by social continue to is platforms as we

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continue and organic M&A while to savvy growth future. to and will internationally tailoring And top expand our view way as several We the for by the lastly, years. drivers and priority, over our test experience spend digitally XX:XX learn growth localizing we the brands awareness into grow customer is new marketing incremental our next markets

highly successful a led M&A have deals. to disciplined approach that We has

As for high to targets brands we to our per percent the growth world a annual augment profitable two year. growth, reminder, can our we're digital, term searching add one and best with acquisitions consumer to We portfolio. believe to the direct twenty long

We our that will add for to XX:XX on, to I my want a gratitude across brands here our first meaningfully all as and our be to M&A quarter Before our only teams and delivering strategy public a.k.a. and company. a enhance at selective express it very to in continue disciplined portfolio. brands great I of pass

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Ciaran Long

Jill, you, and Thank everyone. good XX:XX afternoon,

for the also their of on remainder thank pandemic. details and results dedication employees I third commitment outlook for throughout provide I take a year, quarter more moment to the like to Before our our would the and

we pleased despite our performance, the our have the COVID to related quarter of delivered now are lockdowns third Turning expectations Australia. in challenges presented results ahead by

percent hundred sixty demonstrates as one sales the rose as the well last two The thirty to eighty fifty For quarter form part increased prior and our percent forty COVID quarter, compared year nine Adjusting and million percent we of nine pro one value dollars Our future due Kings of Culture of our last the performance and basis, this to four year the platform third to strength one sales XX:XX cost five further percent Australia. percent net increases. hundred six in represents Proforma point million of constant million eight inclusion the grew On percent strategic or to business, number lockdowns forty as dollars of third quarter net our XX:XX to year operating percent sixty retail. the gains order prior that a hundred average six net Kings. to three Culture third increased orders one fifty constant net including prior compared dollars the two a in currency dollars compared disproportionate to compared year, in price twenty in grew the impact currency. increased year. quarter for seven the despite sales to sales believe

– growth performance months, our fifty our three twelve the reflects across brands. trailing year-over-year continued million the customers metrics point momentum dollars. six The active key performance one percent proforma With these increased to in

percent S. three last from proforma percent quarter few making the in a sales highlights seven growth quarter Now a dollars thirty from be Third Increased million continues seventy largest in regions percent was up as seven net the compared our the I basis, included results. on in Princess Kings XX:XX third no at S. assuming prior of sales drive the our eighty market net it primary will to year. six last Culture of U. year's Polly year forty to again, U. four our provide

Europe the of in the to dollars sixty the million four twenty for of internal that were related dollars Turning demonstrating million is Culture the one million The from lockdown, brand the Awareness to Kings build. Australian to quarter basis hundred to world, one third dollars the Moving sixty traction the quarter COVID XX:XX prior growth Zealand, year majority continue Polly in New As seeing our the the net in sales softer brand UK third four the to quarter. supporting top XX:XX in Australia residents percent a outside of due of gross for of our we're year. grew in profit driven continue six addition one increased Princess of on of twenty impact net million and seven Despite The sales Australia. to which primarily we the percent proforma the one of line loyalty and to the by percent hundred prior of outperform particular. in of profitability, the lockdowns and growth strength and rest further brands increased XX:XX the our the expectations, dollars. place to third in expansion from eighty

exclusive split the The Culture which to targeted decline partially other with at percent as gross points acquisition. a as approximately rate the implementation seventy same carries seven inclusion associated price margin product. by the our lower of charge was the was fifty in decline year. point gross margin six two gross compared in purchase XX:XX basis To last was airfreight rates roughly Petal sixty non-cash and period margin compared million Kings lower The increases higher Pup. sixty three Culture between of result and and the a point accounting an mix margin of expense basis rates the of due or Princess points decline Kings, gross dollars was to offset eight Polly percent brands of to Our balance

our expenses the million and to to forty test million product. strong in through one class part Selling compared in time strategy were and proven return of repeat price to dollars due mix in prior best continue year. full sell XX:XX generate sixteen the We in rates exclusive quarter

which to inclusion compared selling sales, shipped thirty percentage million Kings. twenty four expansion of increase third point in dollars number the to fifteen the quarter of days in Culture an increase one of twenty. advertising a as twenty and was marketing expenses looks point percent its point in increased The increase the to As spend six to marketing points driven driven investments nine Kings, of marketing expense of in tested a by sales, saw Culture the dollars. five which brand Marketing increased scale This was expense from new primarily twenty increased twenty dollars million the exceptional marketing XX:XX by basis As orders third inclusion thirty geographies basis two quarter in percentage and opportunities. a of was point of new compared efficiency. to the twenty,

twenty in an expense increased, costs. to nine fees dollars compensation professional million Kings, G&A Our and additional related of inclusion associated due transaction Culture new equity primarily and The with salaries talent. of increase

million G&A Excluding the expenses and twenty transaction the point four related were IPO, million compensation one to two based million of costs, non-cash six expense stock dollars dollars point dollars. nine of

addition percent percent of EBITDA as internally. a manage our in In we to seventeen sales, profitability last GAAP XX:XX the that five period eleven measures, of As compared nine same year. G&A use an sales adjusted to percent is measure was business to important point point

a proforma million For prior thirteen adjusted on dollars dollars nineteen million dollars year million twenty was quarter, and eight in the basis. EBITDA versus the

XX:XX results percent four basis. our four the on proforma of six prior Australia. year a as As compares a and of twenty adjusted than in our twenty point quarter in Our point third adjusted EBITDA largely percent eleven margin the a expected better point to due expectations result, sales, EBITDA exceeded margin to five percent

eighty per an net the to prior was expense related prior one from zero a.k.a. share one point million Our was to three million a.k.a. per dollars or During dollars four benefit we or the million of zero for prior the had million income to to one quarter, desk in expense dollars dollars our compared desk. per quarter tax a well dollars the per quarter of share compared XX:XX in termination Income dollars million three as dollars the compared prior point attributable or to the million zero basis, dollars our share in or for adjusted attributable attributable of net zero On million in seven year. zero shares zero dollars the in debt year. sheet, we outstanding twenty point four to average and the of to cash the of seven the interest zero dollars as were income balance and extinguishment with point tax the eight dollars an a.k.a. one. of Turning to dollars prior prepayments increase ninety and third to Weighted dollars related one income four approximately an in quarter million eight in equivalents four was net loss share cash ten loss quarter XX:XX of year. million loss fifty benefit the twenty ended point an debt.

the quarter six the available approximately and of IPO, four our percent our Culture third was twenty of to levels including hundred total sixty we twenty dollars end dollars quarter sixty half Inventory had and dollars one dollars of quarter, facility. million twenty first end of reduced million hundred fifty levels of debt on from seventy we debt part forward liquidity during XX:XX As one the dollars last the the our At compared dollars twenty the of at six by credit million million end point the with the in million we third from eight quarter year. ninety million increased inventory twenty. of our the If have inventory thirty year, nine would Kings million of adjust dollars three prior at in one.

XX:XX inventory as minimal noted, of acquisition and of forty cash of were important total holiday the season of composition The quarter level XX:XX as significant point or the dollars an inventory with twenty the to point in point seventeen which as for twenty head twenty pleased million debt acquisition and able of dollars facilities our are leverage from seven to to fuel we immediately was of point six platform. four million a subsequent accretive, nine meet our equity our million two completed we into to beyond Jill dollars, we opportunities see We deliveries two put shares. As one ensure end, and demands. we we three and fifteen growth forward dollars including came million existing million we

as line rates Now, rates guidelines. growth our with gross share are in full for acquisition margin on will its I well more the Minimal’s XX:XX EBITDA outlook and Additionally, our year. details as

mentioned, year. us trends third the quarter in even into solid strong excited and continued the have Jill quarter As momentum for of fourth the remainder our that the

achieved performance with so are momentum to we've the and far expect this We the pleased continue. year

Our guidance of Kings As the Culture for remainder eight today, further our of year. XX:XX lockdowns reopened. no are the all assumes related stores COVID of

not we are delays. constraints anticipating due product While chain to supply any meaningful

costs higher assumes year. gross guidance the we pressure for of remainder margins Our the freight

is year, two to million the be and XX:XX we million we in of dollars. supply EBITDA dollars. situation chain chain supply full While inventory dollars industry sixty the the such the fifty to position recognize closely challenges, to to of monitoring sixty dollars million as five million As are Adjusted feel we we holiday. network confidence our head the in expected and global expect the net sales range into in five range sixty for be

full are to full average weighted point fourth six for the dollars million of ninety XX:XX year. expected for the twenty hundred one two the year the six count quarter. million approximately diluted Capital be expect for dollars We and share million three dollars expenditures and

long one, twenty two. we in will brands, opportunity supply beyond our both expect persist we are As twenty one. we lapping recognize twenty we growth excited the although look challenges across strong and twenty term twenty twenty are And into about we twenty chain twenty

acquisitions to adjusted our long-term targets, margins per outlook addition the growth to net annually, this year. to long summary, quarter in and year sales excluding XX:XX of in term twenty of We of are the approximately live percent on Ebitda are we which our include our two about the performance acquisitions, and the confident deliver our excited mid-teens. one ability growth remainder In for

comments, I value. will operator open create shareholder flexible confidence strategy it model, and the light well for We growth those as we the to brand long-term asset continue as have that questions. up turn back to profitable call to accelerator our operating and drive our With

Operator

first We Instructions] else [Operator gentlemen from coming question and would Konik. Randy everyone is ladies XX:XX Our

Randy Konik

care me? hear you how Hey, XX:XX you, can

Jill Ramsey

XX:XXYes.

Randal Konik

Thanks Great. guys. XX:XX

So, talked price is my staying is sounds strong. question full we and guess retention strong pretty metrics, I selling about like first it

strong get a at? full color repeat go more selling helpful maybe margin if and you get full just better opportunity and merchandise that changing little if around behavior through these has metrics little a about merchandise is super to that bit give can curious. been color a that more And bit here? what how selling, how then can around purchase going price little granular us stay think more be margins Thanks, So where even want on forward price retention and you do Just guys.

Jill Ramsey

in reflected coming repeat because a retention saying customers are focused and start Randy. rates of percent newness engaged as offering selling I'll stream the really back, twenty. on exclusive Thanks, XX:XX high our twenty keeps sixty we very with constant very high our in are and that merchandise three quality,

full through. really and of disclose contributed our high higher to through, and what but want, this As price see which bit. customers one a through remained is to take mark less talked test based through full high we through to and ultimately sell retention price quarter, buying. through our and We full even AOV sell twenty level repeat price has have what's actually don't XX:XX our high stay we've we it's about is gone up our high the know very percentage it also leading seen We that full high that quarter. price as and And our sounds remained our have twenty part sell of brand we on has price full sell third

merchandise going kind forward. Regarding of margins

our in We rate. have confident margin gross

We have some offset do competing this We expense on take some quality quarter increases, which able are supply and seen exclusive we've of merchandise. done pricing bit selectively of have issues. to related we've chain the to price power

we confident able current that really our very of our and rate. are continue can margin trend gross we're to So, balance out

Operator

Right. XX:XX

next question Adorama. coming is last from Our [Indiscernible] name

Unidentified Analyst

little questions. on fourth embedded posted the Australia, some percent now, then the the lockdowns I And thanks guys as I Australia I you how their brands a very maybe assumption than if Help Xq as and interesting you. wouldn't bit in supply guess, to Hey, contribute results a guess is follow-up, for us the growth for your it much understand Thank is different expected core you what's despite quarter? XX:XX acquisition know minimal. really chain taking first, the minimal seven mind, number? guys strong

Ciaran Long

Yes. XX:XX

Australia, digit and expect into out QX. range and in that continue into expect be guidance, We I I to would of the kind kind guess for we coming of double specific would and as back see QX. we go strength growth regions, we QX go of we to thanks our don't think but around

is For minimal, would impact add a incremental it's to quarter. to what we the dollars expect QX from to to million the about on additionally eight

Jill Ramsey

can class some our on bolster chain get men's complements we time, evaluate to to first, our we wear a over minimal brands. our get perspective, of and this fulfillment supply bring position levels all network level, we from group in rates And across the and well. if leveraging and welcome set are in our excited in carrier acquire brands can Culture our and of center into leverage It and great our space evaluating street providers with with we're we that just of really service and new XX:XX network and about thrilled really are them a partners. and brand from They our a strong Kings partner portfolio. synergy quite and operating business in bottoms comparing that Also that current with best denim other are partners suppliers great we

go. we So, that we're as evaluating

Operator

XX:XX Okay.

Murphy. question coming next Erinn from is Our

Erinn Murphy

of exclusive right question Can availability And in then banner? party on both inventory is talk you about the it Australia broad for so I quarter. is afternoon my your momentum just referenced happen now Great. in how that seeing. question brands? Are reopening first the across that Kings Thank And quarter seeing my the the gate. second just congratulations Culture within well spread portfolio? performance much. trying is Good around you first is Thank brands around United and how the out just that that you brands you you. third guess as versus fourth quarter XX:XX you're States of your the as party third

Jill Ramsey

thanks Great. and Thanks, Erinn XX:XX your for questions.

that. on First, on QX comment I'll

We seeing QX. and of continuing we some The into out head momentum early QX really read are coming already nice as is strong.

strong. reopening the now As with traffic and we've open continue really the past as in really over are Kings rebound XX:XX stores we Australia well So from has we and Culture of inventory into really be an to just strong all standpoint really seeing very seen great very come the as ready, prepared we've as to to stores. online seen online really momentum plans well our well, excited over some and get back marketing Australia, merchandising events head weeks, in in QX are stores rebound are few seeing early the business we back Australia in business as our

We have of up a events. great line

we'll throughout we feeling I quarter. and teams the into just out our call should head mean, So really good as Also, agile to adjust I really QX. are

terms five intensity be lot for we've there. plan marketing XX:XX have Kings the their the eight the really We the They think Kings reopened Australia of there's was all majority uncertainty lockdowns so But have quarter, and Culture were of for in to impacted quarter. promotionality. of around agile of holiday now. Covid the by closed Culture ourselves stores promotional left room In of calendar a a I

we're reopening brands. see the as Australia. And is starting did back about party we're occurring He a as online across so, that of mix excited just yes there business, in house The is versus mix comes a and to exclusive. the of business and ask third reminder, in Kings party kind Culture third about what

looking S. U. and a and really with those see a that in in-house certainly are gross nice the that brands grow bring we the we comment we as U. excited house differentiator a we S. of their this of and penetration business, do higher mix bring As in leaning which are S. higher into and we're the We expand the brand into a Market. lead as to real of that business to brand for about margin brand competitive into U. mode us in also the looking penetration

Ciaran Long

XX:XX for Culture position in good really vendors for third And all and QX. just of with position rushing the then the a for inventory those pretty across brands from brands Erinn an party Kings

whole demand, position but forward pulled to meet inventory in to day. just We some pretty we make feel have everything sure the a into we're good heading

Operator

coming ahead. next Skelly. is from Joseph question Our XX:XX Go

Unidentified Analyst

XX:XX Great. Thank much. you very

questions to me quick back just So going performance for the quarter. in just the two

then you the effectiveness came if marketing any from the maybe remind guys. best wondering ultimately ATT Was kind you material quarter. can wondering which things just and on or the IOS when performing during look you the Just and efficiencies as [Indiscernible] market I channels us on for again better channels for click can considering the guidance impact comment if are Apples out the of And on change of Thank surprised transformed of some out on guys very or much. you initial with the time double at outperformance, actually was quarter. you the what that you your you second, between

Jill Ramsey

faster of in we The of fact were last were across growth, able of stores quarter multiples business. manage that very to and occurring in what while – on able the September really delivered rebound five will having July, that our accordingly you. performance. XX:XX throughout to did first the off business started up it in time, surprised see curfews at Australia, in of that it business we start really the then comment but agile. the of also were than I pleased we lockdowns and say us, strong teams on back business a eight we performance sort we marketing adjust the but really year's top seven were that we Recall and pleased we to And percent Australia pleased the build Yes. through wouldn't see the really very in growth big and with and the closed, really our Thank Australia agile and drop pivot I adjust and to be inventory saw the August two regions, across anticipated. course were spend with

been really paid than is influencer in paid marketing. to pleased able That spend on micro impacted outperformed offense a marketing our to rely but a scaling less more on I mix impact relying and from we longer our performance influencers we reallocate anticipated, strategy. We on on of content across XX:XX best we of optimize bit great this said, marketing and really platforms media were the strong is there spend our IVFA. ads really think our had our and on and a standpoint ads, But and impacts there than we there So, and first ultimately IOS social spend do Facebook. were some We've and have approach and are approach social on term, thanks efficiency

Okay, all right. Thanks.

Operator

XX:XX And from our next question Hutchinson. is Lorraine coming

Lorraine Hutchinson

gaining playbook was U. for update offer U. for an indicators I that traction Culture Kings you S. Thank Kings? And XX:XX on S. brand for of then early if Expansion could the proof you. Polly in is or the the curious Princess Culture us awareness points any some

Jill Ramsey

XX:XX thanks Great. Hi your Lorraine, for so questions. much

S. really First scaled Culture the What about unaided Business business. all, forties this their in Kings growth U. over Culture with is I'll portion is street more well-known U. brand seeing men's Australia growing S. U. Online their business, and wear Australia, popular and brand awareness S. of very we're in in digits their just U. in awesome the the on Kings, S. the strong the a while excites single in in said, the awareness fastest about tremendous talk That

Culture S. We a build we head are team U. our our track of out here. into the with S. started on expansion U. plans have Kings and hired to

hires really learned Princess and are building Polly. Our strategy on adopted from influencer out first focused our micro really

digital adapt Culture their will that Kings XX:XX brand approach we well, add we with of center flagship the first back U. looking of as half the you influencer to front that the first Princess strategy. as using scale social to And in led up really next and asked year. grow of playbook So open year a the to that the S. for are able similar a distribution in Polly next store being about micro half And in

college really the We've XX:XX S. a sort strong really for really of social dresses. they've influencer and signups And there just thousand did U. their on the quarter And of the back a the saw Princess in continues ambassador shift had and to tremendous share into playbook, saw a proof S. program incredible U. points Princess gain reopening business Regarding leaning growth that. in the Polly program even in Polly the media just on back as to we twenty launch been harder they with demand school, with

across great U. in take Petal to and of able those the Adopting get out learnings continuing out of also now lot a Pup business to that. Princess the adapt off roll and that We've really So, group. Polly we're S. over and seeing to done then really that

fastest our growing it's business. Now

the we're Polly able being it in learning Princess So and elsewhere what with really to apply pleased portfolio. out

Operator

next Our is XX:XX from question Chen. coming Oliver

Oliver Chen

partners XX:XX across unique as quite and your demand be a.k.a. promotional you Thank partnerships we there about What you. then needle light question, pricing, on the is Hi. And pressures focused different yet, you're more term all capital and second think in the very what near in face as environment biggest We portfolio? with curious the technology that seeing of of should medium approach? inflationary as profile also you and technology doing and strong. to your key work what approach you. about Thank investors terms of remains were some terms in you're movers, with your

Jill Ramsey

XX:XX Thanks, Oliver.

momentum look to to standpoint seen year, reiterate, well a just this QX and out think get from into QX the just as I strong positioned we're the we've landscape, already we that's of read an we really strong early I as And inventory kind of quarter regarding coming think we here. just line-up. very promotional and the we're and as quite are marketing and have needed. room a in merchandising compete will A adjust adapt be to and strong conjectures to holiday, holiday really less ready a able be and as market to promotional needed and this the but prepared agile have as of lot promotional

pricing emphasizing able we perspective, medium expense to able our power a in up, it's And on just the compete supply out still sort brands. think really to as power. of to have taking we exclusivity. have in I increase rates prices of pricing price really in term, some while we that, we the the good a even pricing there that bit near means with quarter. have growth our and point important And per actually prices did to selectively kind we really quality those quite offset days. that From brands that which head maintain really our been and into been XX:XX big of actually we see Not some feeling So of chain of that se,

forward right standpoint, are we do we are run gross reevaluate as asset where a technology So fifty. pricing committed an we that's as Shopify margin they maintaining And as mid an ongoing. and needed partners. of light to our really go we talked we ecosystem stacks will From rates about, technology leveraging

capabilities back get it the learn first been and and of in best across renegotiate really test our to also as brands. very that we tech network on out flow it, to we what across early capability lean best real we're so, a out latest now you with our access high see able and gives leverage. strong brands their influence line demographics is – think sitting sure data that a even across allows then this across best there. the brands what a to really pleased there out we've curate features rates constantly strategic as gold XX:XX best strong our roadmaps strategic just access develop were tech really able driven to geographies being ask is our us making really for are group I us that our of approach everyday analytics and flexibility and of partners tech started and to as and really but very merchandising of We just decisions our to innovation all us there that build innovation get capabilities, off relationships We to our that at the really in most and gives really capabilities. the and excited strong give and some that are the harnessing This insights and class in are and continue expand excited across us their class good and our going mine on partners brands on also to If with QX, take access and analytics in strides able strategy, into on our across brand forward cost that. and about are across XX:XX made keeps really to data cross share honestly capabilities. of partners this of about this technology to group really really we're well some think but We've to best and analytics data But go we've

should So, waiting more hear to about. be that's from what and people watching us

Ciaran Long

wage expectations increase we of increases the that pressure year-over-year QX, increases some increases over do kind to inbound and go S. had their next inflationary, XX:XX seeing U. And built we've but is both even expect We've the other on seen obviously some the there our a into small impact of or there airfreights. we're floor pricing our not expect are a in of significant continue we've Oliver, kind the quarter, just guess we where but kind on Distribution at really and I I add to place into are on center, forward. quarter year. on big more do

Operator

our right, [Indiscernible]. All Michael XX:XX next from question is coming

Unidentified Analyst

live guidance congrats it's if I things a on I it's of minimal, looks It's to out quarter. talk want guys, model from and about to little a then bit more a on nice take revenue bit of percent couple percent maybe you number here quarter call. like the in fourth a for Hey deceleration. think forty public a thirty little XX:XX one on nice deceleration XQ. then to a proforma ask the just of And we guys

several in reopening out coming the lockdowns talked of of reaccelerate the business XQ. You about parts and

combined fourth percent the start little increases mid-single talked the third is to of inputs guidance, we guys here math to the to think right the sustainable? in of how there than is I just and us the finally, compares tougher quarter. much we the help twenty thinking you percent some about the same just five digit related I the a about history And a if a price changeover seasonality looks much since digit about the I'm from know just you're trying build about quarter business brands. little long that conservatism, like you percent a lot just the XQ you now help a thinking is of So, as year twenty planning we're twenty bit there to ago of what help. for don't on you any saw And be kind question margins ten that you're with any for Is in have AOV, next any about deceleration to how AOV And that's that alongside we to know couple the start or the Again, maybe and point this ten inputs we've to on quarter. year would of quarter? maybe six it it could talk across to fourth mid-single had as dollars a thinking lower term, the you don't if there? learn certainly a so EBITDA about Xq place would in is then

Ciaran Long

XX:XX I'll Yes, AOV backwards. maybe thanks to work and kind and first go of

basis. constant princess I it put six Petal we percent to a across effect. year-over-year. and the really price particular coming in three saw with to see AOV It's up currency we're In increase like and on the increases that's was of And the Pup brands. pretty all happy from think into percent

ability. forward, and market to at be prices go they think as look the see really and they I move opportunistic will the continue

And see in AOV, think seasonality in go AOV So QX then that kind our around in as that we of QX, of we think and it's FYXX. about kind as guidance digit relates think of certainly to from single to we I certainly of kind and expectations about forward QX. our low kind

These are also as of we QX brands promotion with to XX:XX of our drivers, on so three there. driver nature up a QX is bit then And and think and and mix relates conservative of other U. kind see of it brands kind that carriers expect of perspective. just of also are bringing in public kind decelerating it And say to gross from margins, So the down expenses expenses some the would be to perspective, just is S. as newer brands culture QX. of seasonality, we revenue And somewhere versus QX when QX. you in kind expect AOV the to different of the it new bigger to that's more decrease just comedown somewhat would categories QX, really nature the G&A promotional of the bigger our across but in want the this one would gains, then from really, coming the driver of so surcharges would the thank conservatism. and with QX QX that's we to about impacting increase I little we kind relates you bit EBITDA, in we with EBITDA I from say it of selling in year. would the in company do those

public, first in think public quarter decrease QX. Insurance other of drivers so EBITDA company and costs. with that They're our the being kind over [Indiscernible] As it's full of bringing

Operator

from question [Indiscernible]. next Our XX:XX is coming

Unidentified Analyst

first minimal. guess I guess, call. on follow a couple on your I ask XX:XX Hey everyone, I'll ups Karen. Congrats just

Is dollars remind is kind new you of you me then this a bit year does next color around the fit future minimal going Can revenue to two rate eight gross of great? that of assume do? to revenue margin little just guys mix guys is you Thank ten million kind gave that And think this and you out that of would used normally then then of in the equity think annually deals forward? that something purchase of and that to in time. kind that these or kind of any the business thirty run XQ forty kind on I dollars percent number million I would me one we be should you. into annualized the

Ciaran Long

about acquisition, XX:XX thirty of part about of the was two purchase of million the the price. shares, dollars and percent Sure. point Thanks. price Yes, five overall percent the from was million purchase one just seventeen five folks under pretty

kind upgrades business. hundred to in that is from across prior the see overall we acquisitions from revenue being it's out in expect. of there, all do our what I very then much to not certainly the AKA interested think the of twenty talking and equity a somewhere brands that kind long-term is our they're their seasonal to expect to that we percent minimal thirty five kind of equity range we potential And perspective, quarterly of as is And mind, of and business. the part They're in percent acquisitions. would range of having a

big a are of drivers revenue perspective. to forty changes very And from they have portfolio gross range so dollars from similar that the a margins in to million thirty there model that we the kind perspective. across AOV no overall dollars So

I perspective first we of the their from a make that growth headcount that platform. in sure think can support bring will we about EBITDA, that in to of think kind more as year them invest we onto just

EBITDA but back that rate their on come down first year very so bring will And quickly. the

Operator

XX:XX Our comes Dana next Telsey. from question

Dana Telsey

afternoon, and Good XX:XX progress. everyone, congratulations on the

other at mentioned and How Petal and styles going the forward in component it's do sustainable Princess You sustainable the this there Rebdolls? sizing forward? new mix these by thirteen or initiatives whether some some of or extended more accelerate it initiatives introducing move Polly and does does whether of brands, or the of the weekly increasing to weekly exclusive terms going It merchandise hold styles percent. whether new the the expanding or for it's Pup also

Jill Ramsey

Dana. that. Thanks, take I'll XX:XX

Princess this Polly, and a our to exclusive mentioned, brand quarter roll have as that we and Princess expectations. that at exclusive committed response across and that high competes Polly, mix Princess customer line pleased with you on increase quarter did quality their the Earth out increase our continuing already sustainable to to So, exclusive of brands. of really in really all strong club that and Polly past line really exceeded They saw and penetration

renewables this, five committed the coming XX:XX all apply of their their twenty suppliers new about price a or were to They line. their increase made those Polly supplier styles and of they do And to doing expand to get have Princess to recyclable take networks, very renewable to quarter. mill to are from are any the find were increases by sourced cost go brands. needing across now end they And also other able that those are been assortment our looking the and excited from learnings to sustainable at percent in fabrics recyclable new continuing fabrics notably offer order and that so to not didn't or the incur of forcing we is from percent that to use So, of to they and to to fabrics need customer this fabrics.

this and line that So, Princess on are sizing inside that a group they're from expansion there sustainability to extended their apply come brands also a out. similarly really in introducing learn group curve from lot noted and our brands. of space. quarter as excited going apply to we're will their to We're and the the with across excited and about what rest. QX also leader we're plans that be to of collection learn They really in and doing that able Polly is really that

Operator

Okay. XX:XX

We have from Chen. a Oliver question follow-up

Oliver Chen

and should you. platforms, know might broadly you What And will more platform? the priorities? your What what creation Thank marketplace? be really broadly are within you how key on pioneering about approach look a XX:XX about we the seeing in more your and for as you looking had strategy question M&A I authenticity And M&A experience your Hi, also platform. social new Jill, at value

Jill Ramsey

XX:XX Oliver. Thanks,

well it's So to think growing biggest AKA on is priority focus focused on note I important organic. on that first, M&A, our

really and of balanced an we brands. approach also really and We of strong our to and diversified we're have aesthetics, of M&A brands have think and to now best U. and strategy really brands brands, great scaling the choice a IPO our gender add are to we really so be disciplined is we the the the to a the and great ultimately, pipeline really of a expertise right value resonates group and to for profitable that to particularly geographic complement M&A style has high very XX:XX growth, that consumer, make we best acquisitive opportunity visibility, talk looking necessarily best mix we we're have we're and five we mix, enhance go looking they digital them. And brands our our and brands teams. that portfolio real portfolio assembled are excited our fashion have acquirer S. future e-commerce not and We a in and group we to of so our just our with committed mix. But are when about really far can brands them competitive diversify do real look proposition the the scaling in for audiences, really which to continue And to our selective are a as that an we for the we've with bit direct all-star just our in course,

talking So, and about what one that brands year. of acquisitions two the we're reminder, we're to really we're seeing potential we're just a looking to and again maintaining a great as out and pipeline excited strong there a probably

Operator

no further questions. this are Instructions] I'm not time. Jill, XX:XX any There showing [Operator questions at

Jill Ramsey

Really you. XX:XX Thank appreciate Thanks, everyone. joining.

Operator

you joining. XX:XX Ladies gentlemen, thank for

now may You disconnect.

Emily Goldberg	Head of Corporate of Communications
Jill Ramsey	Chief Executive Officer
Ciaran Long	Chief Financial Officer
Randal Konik	Jefferies
Erinn Murphy	Piper Sandler
Lorraine Hutchinson	Bank of America
Oliver Chen	Cowen
Dana Telsey	Telsey Advisory Group

a.k.a. Brands Holding (AKA) 10 Nov 212021 Q3 Earnings call transcript