Australian-born streetwear retailer Culture Kings has recorded another double-digit net sales growth in the United States for the first quarter of 2024, adding to its parent company A.K.A Brands’ group US sales lift of 6.2 per cent.
Much of the double-digit growth was driven by the streetwear retailer’s owned first party brands including Loiter, American Thrift and mnml, which accounted for more than 50 per cent of total Culture Kings US sales in the first quarter.
Despite this, A.K.A Brands registered a global net sales decrease of 3 per cent to $116.8 million across the group - which includes two other Australian-born apparel subsidiaries Princess Polly and Petal & Pup, as well as American brand mnml.
A.K.A Brands also reported a net loss of $8.9 million for the first quarter, slightly improved from a net loss of $9.6 million in the prior corresponding period.
The group’s adjusted earnings before interest, tax, depreciation and amortisation was $0.9 million in the first quarter of 2024, down from $2.2 million in the first quarter of 2023.
A.K.A Brands CFO and interim CEO Ciaran Long said the latest result comes as the business grew its total active customer base by 5.5 per cent year-on-year.
“2024 is off to a great start, and I’m pleased that we delivered a solid first quarter that exceeded the high end of our net sales and adjusted EBITDA outlook,” Long said.
“Our strong performance is a direct result of our teams’ steadfast execution of our strategic priorities, and I am grateful for their unwavering dedication and commitment to building next-generation brands for next generation consumers.
“Our brands continued to deliver innovative retail strategies in the first quarter, including Princess Polly’s well-received introduction of an activewear collection, a strong launch of Petal & Pup on Nordstrom’s website, further expanding our omni-channel marketplace presence, and another quarter of strong double-digit net sales growth in our Culture Kings U.S. business.”
Princess Polly is also on track to open a store in the Scottsdale Fashion Square in the state of Arizona, a store on Newbury Street in Boston, Massachusetts, and another in the Fashion Valley Mall in San Diego, California - all in the third quarter.
Following successful launches on both Macy's and Target sites, Petal & Pup expanded its distribution on department store Nordstrom's website, exceeding initial expectations according to A.K.A Brands.
“Our operating framework for 2024 is anchored on three key strategic priorities: retaining existing and attracting new customers, remaining committed to showing up for our customers wherever they choose to shop with us, and continuing to streamline our operations to deliver financial benefits across the company,” Long said.
“I am extremely confident in the many profitable future growth opportunities we see for a.k.a. Brands, particularly the tremendous whitespace we see in the US to expand our brand portfolio reach and total addressable market.”