US' a.k.a. Brands' net sales climb 9.5% to $148.9 mn in Q2 FY24

a.k.a. Brands, a leading US-based fashion retailer, has reported a 9.5 per cent increase in net sales for the second quarter of fiscal 2024 (Q2 FY24), reaching $148.9 million, up from $136 million in the same quarter of FY23. This growth was primarily driven by a 16 per cent increase in the number of orders, particularly in the US market, though this was slightly offset by a decline in the average order value compared to the prior quarter. On a constant currency basis, net sales saw a 10 per cent increase.

The company’s gross margin improved to 57.7 per cent in Q2 FY24, up from 56.9 per cent in the second quarter of FY23. Selling expenses rose to $41.2 million from $35.9 million in the same period last year. Marketing expenses remained relatively stable at $18.3 million, compared to $18.4 million in Q2 FY23, representing 12.3 per cent of net sales, down from 13.5 per cent in the prior year.

General and administrative expenses increased slightly to $25.9 million, up from $24.2 million in the same quarter last year. Adjusted EBITDA for the quarter was $8 million, or 5.4 per cent of net sales, compared to $5.6 million, or 4.1 per cent of net sales, in Q2 FY23, the company said in a press release, the company said in a media release.

“Our second quarter results exceeded our expectations, showcasing the strength of our brands and the power of our business model. We continued to execute against our strategic priorities with an emphasis on our customers, and I'm very pleased that our active customer base increased by nearly 12 per cent on a trailing twelve-month basis. Our strong second quarter results are a clear indication that demand for our brands is strong and that we have tremendous growth opportunities ahead of us,” said Ciaran Long, interim chief executive officer and chief financial officer.

Fibre2Fashion News Desk (DP)