KIDPIK
Reports Third Quarter 2022 Results
NEW YORK -- Kidpik Corp.
(NASDAQ:
PIK)
(“KIDPIK”
or the “Company”), an online clothing subscription-based e-commerce company, today
reported its financial results for the third quarter ended October 1, 2022.
Third Quarter 2022 Highlights:
·
Revenue, net:
was $3.6 million, a year over year decrease of 34.8%
·
Gross margin:
was 60.3%,
a year over year increase of 210 basis points from 58.2% in the third quarter
of 2021
·
Shipped items:
were 358,000 items, compared to 559,000 shipped items in
the third quarter of 2021
·
Average
shipment keep rate:
of 68.5%, compared to 68.8% in the third quarter of 2021
·
Net Loss:
was $2.4
million or $0.32 loss per share
·
Adjusted
EBITDA:
was a loss of $2.1 million compared to a loss of $1.4
million in the third quarter of 2021 (see also “Non-GAAP Financial Measures”,
below)
“Our third quarter results were, for the most part, consistent with our
most recent earnings despite the increasingly challenging macro environment and
the continued impact of changes in social media privacy policy on new customer
acquisitions,” said Ezra Dabah, CEO, KIDPIK.
“In the face of a challenging consumer environment, we are taking
actions to ensure the health of our company. We have substantially reduced
purchases of new inventory and are focused on increasing sales from our current
elevated inventory level which we believe will support our cash flow needs in
the short term. We are focused on growing our member base through new and
existing paid and unpaid channels. During the third quarter we have managed to
level off and keep the number of active subscriber’s constant,” concluded Dabah.
Revenue by Subscription (For the 13 weeks ended October 1, 2022)
Active Subscriptions (recurring
boxes):
decreased by 40.6% to $2.3 million
New Subscriptions (first
boxes):
decreased by 35.2% to $0.6
million
Total Subscriptions:
decreased by 39.6% to $2.9million or 78.9% of total
revenue
Balance Sheet and Cash Flow
·
Cash at the
end of the third quarter totaled $0.2 million compared to $8.4 million as of January
1, 2022.
·
Net cash
used in operating activities for the 39 weeks ended October 1, 2022 was $7.0
million compared to $5.6 million of cash used in operating activities in the comparable
period in 2021.
Earnings Call Information:
Today at 4:30pm ET, the company
will host a live teleconference call that is accessible over the internet at
the company’s website,
https://investor.kidpik.com
and
additionally by dialing 1-844-825-9789 or 412-317-5180 for international
callers.
The conference ID is 10170361.
A replay of
the conference call will be available approximately two hours after the
conclusion of the call on the investor relations section of the KIDPIK website
at
https://investor.kidpik.com
or by
dialing 1-844-512-2921, or 1-412-317-6671, internationally, with the Replay Pin
Number
10170361. The replay will be available until
August 23,
2022
.
About
Kidpik Corp.
Founded in 2016, KIDPIK (NASDAQ:PIK)
is an online clothing subscription box for kids, offering mix & match,
expertly styled outfits that are curated based on each member’s style
preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an
effortless shopping experience for parents and a fun discovery for kids. Each
seasonal collection is designed in-house by a team with decades of experience
designing childrenswear. KIDPIK combines the expertise of fashion stylists with
proprietary data and technology to translate kids’ unique style preferences
into surprise boxes of curated outfits. We also sell our branded clothing and
footwear through our e-commerce website,
shop.kidpik.com
. For more
information, visit
www.kidpik.com
.
Non-GAAP Financial Measures
We report our financial results in accordance with
generally accepted accounting principles in the United
States (“GAAP”). However, management believes that certain non-GAAP
financial measures provide users of our financial information with additional
useful information in evaluating our performance. We believe that adjusted
EBITDA is frequently used by investors and securities analysts in their
evaluations of companies, and that this supplemental measure facilitates
comparisons between companies. This non-GAAP financial measure may be different
than similarly titled measures used by other companies.
Our non-GAAP financial measure should not be considered
in isolation from, or as substitutes for, financial information prepared in
accordance with GAAP. Adjusted EBITDA has limitations as an analytical tool,
and you should not consider it in isolation or as a substitute for analysis of
our results as reported under GAAP. Some of these limitations are:
·
Although
depreciation and amortization are non-cash charges, the assets being
depreciated and amortized may have to be replaced in the future, and Adjusted
EBITDA does not reflect cash capital expenditure requirements for such
replacements or for new capital expenditure requirements;
·
Adjusted
EBITDA does not reflect changes in, or cash requirements for, our working
capital needs;
·
Adjusted
EBITDA does not consider the potentially dilutive impact of equity-based compensation;
·
Adjusted
EBITDA does not reflect tax payments that may represent a reduction in cash
available to us;
·
Adjusted
EBITDA does not reflect certain non-routine items that may represent a
reduction in cash available to us; and
·
Other
companies, including companies in our industry, may calculate Adjusted EBITDA
differently, which reduces its usefulness as a comparative measure.
We compensate for these limitations by providing a
reconciliation of this non-GAAP measure to the most comparable GAAP measure. We
encourage investors and others to review our business, results of operations,
and financial information in their entirety, not to rely on any single
financial measure, and to view this non-GAAP measure in conjunction with the
most directly comparable GAAP financial measure. For more information on these
non-GAAP financial measure, please see the section titled “Unaudited
Reconciliation of Net Loss to Adjusted Earnings before Interest, Taxes,
Depreciation and Amortization (EBITDA)”, included at the end of this release.
Forward-Looking Statements
This press release may contain statements that constitute
“forward-looking statements” within the federal securities laws, including The
Private Securities Litigation Reform Act of 1995, which provide a safe-harbor for forward-looking statements. In
particular, when used in the preceding discussion, the words “may,” “could,”
“expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of
these terms and similar expressions, or the negative of these terms or similar
expressions are intended to identify forward-looking statements within the
meaning of such laws, and are subject to the safe harbor created by such
applicable laws. Any statements made in this news release other than those of
historical fact, about an action, event or
development, are forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors, which
may cause the results of KIDPIK to be materially different than those expressed
or implied in such statements. The forward-looking statements may include
projections and estimates of KIDPIK’s corporate strategies, future operations and plans, including the costs thereof. We have
based these forward-looking statements on our current expectations and
assumptions and analyses made by us in light of our
experience and our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate under the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject to a
number of risks and uncertainties, including our history of losses, our ability
to achieve profitability, our potential need for additional funding and the
availability and terms of such funding; our ability to execute our growth
strategy and scale our operations and risks associated with such growth, our
ability to maintain current members and customers and grow our members and
customers; risks associated with the effect of the COVID-19 pandemic, and
governmental responses thereto on our operations, those of our vendors, our
customers and members and the economy in general; risks associated with our
supply chain and third-party service providers, interruptions in the supply of
raw materials and merchandise, increased costs of raw materials, products and
shipping costs due to inflation, disruptions at our warehouse facility and/or
of our data or information services, issues affecting our shipping providers,
and disruptions to the internet, any of which may have a material adverse
effect on our operations; risks that effect our ability to successfully market
our products to key demographics; the effect of data security breaches,
malicious code and/or hackers; increased competition and our ability to
maintain and strengthen our brand name; changes in consumer tastes and
preferences and changing fashion trends; material changes and/or terminations
of our relationships with key vendors; significant product returns from
customers, excess inventory and our ability to manage our inventory; the effect
of trade restrictions and tariffs, increased costs associated therewith and/or
decreased availability of products; our ability to innovate, expand our
offerings and compete against competitors which may have greater resources;
certain anti-dilutive, drag-along and tag-along rights which may be deemed to
be held by a former minority stockholder; our significant reliance on related
party transactions and loans; the fact that our Chief Executive Officer has
majority voting control over the Company; if the use of “cookie” tracking
technologies is further restricted, regulated, or blocked, or if changes in
technology cause cookies to become less reliable or acceptable as a means of
tracking consumer behavior, the amount or accuracy of internet user information
would decrease, which could harm our business and operating results; our
ability to comply with the covenants of our loan and lending agreements and
future loan covenants, and the fact that our lending facilities are secured by
substantially all of our assets; our ability to prevent credit card and payment
fraud; the risk of unauthorized access to confidential information; our ability
to protect our intellectual property and trade secrets, claims from
third-parties that we have violated their intellectual property or trade
secrets and potential lawsuits in connection therewith; our ability to comply
with changing regulations and laws, penalties associated with any
non-compliance (inadvertent or otherwise), the effect of new laws or
regulations, our ability to comply with such new laws or regulations, changes
in tax rates; our reliance and retention of our current management; the outcome
of future lawsuits, litigation, regulatory matters or claims; the fact that we
have a limited operating history; the effect of future acquisitions on our
operations and expenses; our significant indebtedness; and others that are
included from time to time in filings made by KIDPIK with the Securities and
Exchange Commission, many of which are beyond our control, including, but not
limited to, in the “Cautionary Note Regarding Forward-Looking Statements” and “Risk
Factors” sections in its Form 10-Ks and Form 10-Qs and in its Form 8-Ks, which
it has filed, and files from time to time, with the U.S. Securities and
Exchange Commission. These reports are available at www.sec.gov. The Company
cautions that the foregoing list of important factors is not complete. All subsequent
written and oral forward-looking statements attributable to the Company or any
person acting on behalf of the Company are expressly qualified in their
entirety by the cautionary statements referenced above. Other unknown or
unpredictable factors also could have material adverse effects on KIDPIK’s
future results and/or could cause our actual results and financial condition to
differ materially from those indicated in the forward-looking statements. The
forward-looking statements included in this press release are made only as of
the date hereof. KIDPIK cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not
place undue reliance on these forward-looking statements. We undertake no
obligation to update publicly any of these forward-looking statements to
reflect actual results, new information or future events, changes in
assumptions or changes in other factors affecting forward-looking statements,
except to the extent required by applicable laws and take no obligation to
update or correct information prepared by third parties that is not paid for by
the Company. If we update one or more forward-looking statements, no inference
should be drawn that we will make additional updates with respect to those or
other forward-looking statements.
Condensed Interim Statements of Operations
(Unaudited)
|
|
For the 13 weeks ended |
|
|
For the 39 weeks ended |
|
||||||||||
|
|
October 1, |
|
|
October 2, |
|
|
October 1, |
|
|
October 2, |
|
||||
Revenues,
net
|
|
$ |
3,633,467 |
|
|
$ |
5,574,099 |
|
|
$ |
11,734,132 |
|
|
$ |
16,562,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of goods sold
|
|
|
1,442,258 |
|
|
|
2,327,335 |
|
|
|
4,649,552 |
|
|
|
6,659,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
2,191,209 |
|
|
|
3,246,764 |
|
|
|
7,084,580 |
|
|
|
9,903,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipping
and handling
|
|
|
1,042,186 |
|
|
|
1,451,065 |
|
|
|
3,133,411 |
|
|
|
4,543,341 |
|
Payroll
and related costs
|
|
|
1,191,515 |
|
|
|
1,023,241 |
|
|
|
4,137,495 |
|
|
|
2,953,993 |
|
General
and administrative
|
|
|
2,366,283 |
|
|
|
2,169,283 |
|
|
|
5,850,066 |
|
|
|
6,318,183 |
|
Depreciation
and amortization
|
|
|
7,670 |
|
|
|
5,226 |
|
|
|
19,989 |
|
|
|
21,355 |
|
Total
operating expenses
|
|
|
4,607,654 |
|
|
|
4,648,815 |
|
|
|
13,140,961 |
|
|
|
13,836,872 |
|
Operating
loss
|
|
|
(2,416,445 |
) |
|
|
(1,402,051 |
) |
|
|
(6,056,381 |
) |
|
|
(3,933,305 |
) |
Other
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
21,885 |
|
|
|
229,657 |
|
|
|
51,485 |
|
|
|
584,466 |
|
Other (income) expense |
|
|
- |
|
|
|
(442,352 |
) |
|
|
(286,795 |
) |
|
|
(429,045 |
) |
Total
other (income) expenses
|
|
|
21,885 |
|
|
|
(212,695 |
) |
|
|
(235,310 |
) |
|
|
155,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
before provision for income taxes
|
|
|
(2,438,330 |
) |
|
|
(1,189,356 |
) |
|
|
(5,821,071 |
) |
|
|
(4,088,726 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$ |
(2,438,330 |
) |
|
$ |
(1,189,356 |
) |
|
$ |
(5,821,071 |
) |
|
$ |
(4,090,058 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.32 |
) |
|
|
(0.22 |
) |
|
|
(0.76 |
) |
|
|
(0.77 |
) |
Diluted |
|
|
(0.32 |
) |
|
|
(0.22 |
) |
|
|
(0.76 |
) |
|
|
(0.77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
7,688,194 |
|
|
|
5,500,187 |
|
|
|
7,653,790 |
|
|
|
5,300,308 |
|
Diluted |
|
|
7,688,194 |
|
|
|
5,500,187 |
|
|
|
7,653,790 |
|
|
|
5,300,308 |
|
Kidpik Corp.
Condensed Interim Balance Sheets
|
|
October 1, 2022 |
|
|
January 1, 2022 |
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
216,552 |
|
|
$ |
8,415,797 |
|
Restricted
cash
|
|
|
4,618 |
|
|
|
4,703 |
|
Accounts
receivable
|
|
|
229,341 |
|
|
|
342,274 |
|
Inventory |
|
|
14,293,277 |
|
|
|
11,618,597 |
|
Prepaid
expenses and other current assets
|
|
|
1,046,157 |
|
|
|
1,726,516 |
|
Total
current assets
|
|
|
15,789,945 |
|
|
|
22,107,887 |
|
|
|
|
|
|
|
|
|
|
Leasehold
improvements and equipment, net
|
|
|
69,882 |
|
|
|
46,968 |
|
Operating
lease right-of-use assets
|
|
|
1,603,945 |
|
|
|
- |
|
Total
assets
|
|
$ |
17,463,772 |
|
|
$ |
22,154,855 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$ |
2,057,194 |
|
|
$ |
2,560,361 |
|
Accounts
payable, related party
|
|
|
979,652 |
|
|
|
913,708 |
|
Accrued
expenses and other current liabilities
|
|
|
509,418 |
|
|
|
800,972 |
|
Advance
payable
|
|
|
- |
|
|
|
932,155 |
|
Operating
lease liabilities, current
|
|
|
492,443 |
|
|
|
- |
|
Short-term
debt, related party
|
|
|
2,050,000 |
|
|
|
2,200,000 |
|
Total
current liabilities
|
|
|
6,088,707 |
|
|
|
7,407,196 |
|
|
|
|
|
|
|
|
|
|
Operating
lease liabilities, net of current portion
|
|
|
1,127,101 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
7,215,808 |
|
|
|
7,407,196 |
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity
|
|
|
|
|
|
|
|
|
Preferred
stock, par value $0.001, 25,000,000 shares authorized, of which no shares are
issued and outstanding as of October 1, 2022 and January 1, 2022
|
|
|
- |
|
|
|
- |
|
Common
stock, par value $0.001, 75,000,000 shares authorized, of which 7,688,194 and
7,617,834 shares are issued and outstanding as of October 1, 2022 and January
1, 2022, respectively
|
|
|
7,688 |
|
|
|
7,618 |
|
Additional
paid-in capital
|
|
|
49,980,531 |
|
|
|
48,659,225 |
|
Accumulated
deficit
|
|
|
(39,740,255 |
) |
|
|
(33,919,184 |
) |
Total
stockholders’ equity
|
|
|
10,247,964 |
|
|
|
14,747,659 |
|
Total
liabilities and stockholders’ equity
|
|
$ |
17,463,772 |
|
|
$ |
22,154,855 |
|
Kidpik Corp.
Condensed Interim Statements of Cash Flows
|
|
39 Weeks Ended |
|
|||||||||
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
||||||
Cash
flows from operating activities
|
|
|
|
|
|
|
|
|
||||
Net
loss
|
|
$ |
(5,821,071 |
) |
|
$ |
(4,090,058 |
) |
||||
Adjustments
to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
||||
Depreciation
and amortization
|
|
|
19,989 |
|
|
|
21,355 |
|
||||
Amortization
of debt issuance costs
|
|
|
- |
|
|
|
29,377 |
|||||
Forgiveness
of
loan payable |
|
|
- |
|
|
|
(442,352 |
) |
||||
Equity-based
compensation
|
|
|
1,355,068 |
|
|
|
- |
|
||||
Bad
debt expense
|
|
|
456,388 |
|
|
|
614,239 |
|
||||
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
||||
Accounts
receivable
|
|
|
(343,455 |
) |
|
|
(666,864 |
) |
||||
Inventory |
|
|
(2,674,680 |
) |
|
|
(1,123,932 |
) |
||||
Prepaid
expenses and other current assets
|
|
|
680,359 |
|
|
|
(292,684 |
) |
||||
Operating
lease right-of-use assets and liabilities
|
|
|
15,599 |
|
|
|
- |
|
||||
Accounts
payable
|
|
|
(503,167 |
) |
|
|
(123,612 |
) |
||||
Accounts
payable, related parties
|
|
|
65,944 |
|
|
619,227 |
|
|||||
Accrued
expenses and other current liabilities
|
|
|
(291,554 |
) |
|
|
(182,064 |
) |
||||
Net
cash used in operating activities
|
|
|
(7,040,580 |
) |
|
|
(5,637,368 |
) |
||||
|
|
|
|
|
|
|
|
|
||||
Cash
flows from investing activities
|
|
|
|
|
|
|
|
|
||||
Purchases
of leasehold improvements and equipment
|
|
|
(42,903 |
) |
|
|
- |
|
||||
Net
cash used in investing activities
|
|
|
(42,903 |
) |
|
|
- |
|
||||
|
|
|
|
|
|
|
|
|
||||
Cash
flows from financing activities
|
|
|
|
|
|
|
|
|
||||
Proceeds
from issuance of long-term debt from related party
|
|
|
- |
|
|
|
2,000,000 |
|
||||
Proceeds
from issuance of common stock
|
|
|
- |
|
|
|
500,000 |
|
||||
Cash
used to settle net share equity awards
|
|
|
(33,692 |
) |
|
|
- |
|
||||
Net
proceeds from line of credit
|
|
|
- |
|
|
|
1,138,505 |
|
||||
Net
proceeds (repayments) from advance payable
|
|
|
(932,155 |
) |
|
|
367,712 |
|
||||
Net
proceeds (repayments) from loan payable
related
party
|
|
|
(150,000 |
) |
|
|
1,300,000 |
|
||||
Net
cash (used in) provided by financing activities
|
|
|
(1,115,847 |
) |
|
|
5,306,217 |
|
||||
Net
decrease in cash and restricted cash
|
|
|
(8,199,330 |
) |
|
|
(331,151 |
) |
||||
|
|
|
|
|
|
|
|
|
||||
Cash
and restricted cash, beginning of period
|
|
|
8,420,500 |
|
|
|
685,296 |
|
||||
Cash
and restricted cash, end of period
|
|
$ |
221,170 |
|
|
$ |
354,145 |
|
||||
|
|
|
|
|
|
|
|
|
||||
Reconciliation
of cash and restricted cash:
|
|
|
|
|
|
|
|
|
||||
Cash |
|
$ |
216,552 |
|
|
$ |
204,877 |
|
||||
Restricted
cash
|
|
|
4,618 |
|
|
|
149,268 |
|
||||
|
|
$ |
221,170 |
|
|
$ |
354,145 |
|
||||
Supplemental
disclosure of cash flow data:
|
|
|
|
|
|
|
|
|
||||
Interest
paid
|
|
$ |
21,830 |
|
|
$ |
500,905 |
|
||||
Taxes
paid
|
|
$ |
- |
|
|
$ |
1,332 |
|
||||
Supplemental
disclosure of non-cash data:
|
|
|
|
|
|
|
|
|
||||
Record right-of use asset and operating lease
liabilities
$
|
|
|
1,857,925 |
|
|
$ |
- |
|
||||
Conversion
of shareholder debt
$
|
|
|
- |
|
|
$ |
2,000,000 |
|
||||
RESULTS OF OPERATIONS
The
Company’s revenue, net is disaggregated based on the following categories:
|
|
For the 13 weeks ended |
|
|
For the 39 weeks ended |
|
||||||||||
|
|
October 1, |
|
|
October 2, |
|
|
October 1, |
|
|
October 2, |
|
||||
Subscription
boxes
|
|
$ |
2,867,930 |
|
|
$ |
4,745,932 |
|
|
$ |
9,326,331 |
|
|
$ |
14,163,217 |
|
Amazon
sales
|
|
|
468,835 |
|
|
|
568,948 |
|
|
|
1,577,412 |
|
|
|
1,893,814 |
|
Online
website sales
|
|
|
296,702 |
|
|
|
259,219 |
|
|
|
830,389 |
|
|
|
505,548 |
|
Total
revenue
|
|
$ |
3,633,467 |
|
|
$ |
5,574,099 |
|
|
$ |
11,734,132 |
|
|
$ |
16,562,579 |
|
Gross Margin
Gross profit is equal to our net sales (revenues, net) less
cost of goods sold. Gross profit as a percentage of our net sales is referred
to as gross margin. Cost of sales consists of the purchase price of merchandise
sold to customers and includes import duties and other taxes, freight in,
defective merchandise returned from customers, receiving costs, inventory
write-offs, and other miscellaneous shrinkage.
|
|
For the 13 weeks ended |
|
|
For the 39 weeks ended
|
|
||||||||||
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross
margin
|
|
|
60.3 |
% |
|
|
58.2 |
% |
|
|
60.4 |
% |
|
|
59.8 |
% |
Shipped Items
We define shipped items as the total number of items shipped in a given period to our customers through our active
subscription, Amazon and online website sales.
|
|
For the 13 weeks ended |
|
|
For the 39 weeks ended
|
|
||||||||||
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shipped
Items
|
|
|
358 |
|
559 |
|
|
|
1,083 |
|
|
|
1,680 |
|
||
Average Shipment Keep Rate
Average
shipment keep rate is calculated as the total number of items
kept by our customers divided by total number of shipped items in a given period.
|
|
For the 13 weeks ended |
|
|
For the 39 weeks ended
|
|
||||||||||
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average
Shipment Keep Rate
|
|
|
68.5% |
|
68.8 |
% |
|
|
69.4% |
|
|
|
68.5 |
% |
||
Revenue by Channel
|
|
13 weeks ended October 1, 2022 |
|
|
13 weeks ended October 2, 2021 |
|
|
Change
($) |
|
|
Change
(%) |
|
||||
Revenue by channel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
2,867,930 |
|
|
$ |
4,745,933 |
|
|
$ |
(1,878,003 |
) |
|
|
(39.6 |
)% |
Amazon sales |
|
|
468,835 |
|
|
|
568,947 |
|
|
|
(100,112 |
) |
|
|
(17.6 |
)% |
Online website sales |
|
|
296,702 |
|
|
|
259,219 |
|
|
|
37,483 |
|
|
|
14.5 |
% |
Total revenue |
|
$ |
3,633,467 |
|
|
$ |
5,574,099 |
|
|
$ |
(1,940,632 |
) |
|
|
(34.8 |
)% |
|
|
39 weeks ended October 1, 2022 |
|
|
39 weeks ended October 2, 2021 |
|
|
Change
($) |
|
|
Change
(%) |
|
||||
Revenue by channel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
9,326,331 |
|
|
$ |
14,163,217 |
|
|
$ |
(4,836,886 |
) |
|
|
(34.2 |
)% |
Amazon sales |
|
|
1,577,412 |
|
|
|
1,893,814 |
|
|
|
(316,402 |
) |
|
|
(16.7 |
)% |
Online website sales |
|
|
830,389 |
|
|
|
505,548 |
|
|
|
324,841 |
|
|
|
64.3 |
% |
Total revenue |
|
$ |
11,734,132 |
|
|
$ |
16,562,579 |
|
|
$ |
(4,828,447 |
) |
|
|
(29.2 |
)% |
Subscription Boxes Revenue
|
|
13 weeks ended October 1, 2022 |
|
|
13 weeks ended October 2, 2021 |
|
|
Change
($) |
|
|
Change
(%) |
|
||||
Subscription boxes
revenue from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions
– recurring boxes
|
|
$ |
2,297,212 |
|
|
$ |
3,865,550 |
|
|
$ |
(1,568,338 |
) |
|
|
(40.6 |
)% |
New subscriptions -
first box
|
|
|
570,718 |
|
|
880,382 |
|
|
(309,664 |
) |
|
|
(35.2 |
)% |
||
Total subscription
boxes revenue
|
|
$ |
2,867,930 |
|
|
$ |
4,745,932 |
|
|
$ |
(1,878,002 |
) |
|
|
(39.6 |
)% |
|
|
39 weeks ended October 1, 2022 |
|
|
39 weeks ended October 2, 2021 |
|
|
Change
($) |
|
|
Change
(%) |
|
||||
Subscription
boxes revenue from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
subscriptions – recurring boxes
|
|
$ |
8,084,104 |
|
|
$ |
11,474,502 |
|
|
$ |
(3,390,398 |
) |
|
|
(29.5 |
)% |
New
subscriptions - first box
|
|
|
1,242,227 |
|
|
2,688,715 |
|
|
(1,446,488 |
) |
|
|
(53.8 |
)% |
||
Total
subscription boxes revenue
|
|
$ |
9,326,331 |
|
|
$ |
14,163,217 |
|
|
$ |
(4,836,886 |
) |
|
|
(34.2 |
)% |
Revenue by Product Line
|
|
13 weeks ended October 1, 2022 |
|
|
13 weeks ended October 2, 2021 |
|
|
Change
($) |
|
|
Change
(%) |
|
||||
Revenue
by product line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’
apparel
|
|
$ |
2,692,466 |
|
|
$ |
4,189,538 |
|
|
$ |
(1,497,072 |
) |
|
|
(35.7 |
)% |
Boys’
apparel
|
|
|
758,733 |
|
|
|
1,111,509 |
|
|
|
(352,776 |
) |
|
|
(31.7 |
)% |
Toddlers’
apparel
|
|
|
182,268 |
|
|
|
273,052 |
|
|
|
(90,784 |
) |
|
|
(33.2 |
)% |
Total
revenue
|
|
$ |
3,633,467 |
|
|
$ |
5,574,099 |
|
|
$ |
(1,940,632 |
) |
|
|
(34.8 |
)% |
|
|
39 weeks ended October 1, 2022 |
|
|
39 weeks ended October 2, 2021 |
|
|
Change
($) |
|
|
Change
(%) |
|
||||
Revenue
by product line
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’
apparel
|
|
$ |
8,712,027 |
|
|
$ |
12,647,081 |
|
|
$ |
(3,935,054 |
) |
|
|
(31.1 |
)% |
Boys’
apparel
|
|
|
2,448,178 |
|
|
|
3,341,419 |
|
|
|
(893,241 |
) |
|
|
(26.7 |
)% |
Toddlers’
apparel
|
|
|
573,927 |
|
|
|
574,079 |
|
|
|
(152 |
) |
|
|
- |
|
Total
revenue
|
|
$ |
11,734,132 |
|
|
$ |
16,562,579 |
|
|
$ |
(4,828,447 |
) |
|
|
(29.2 |
)% |
Adjusted EBITDA
Unaudited Reconciliation of Net Loss to Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA)
We define adjusted EBITDA as net loss excluding interest income,
other (income) expense, net, provision for income taxes, depreciation and
amortization, and equity based compensation expense.
The following table presents a reconciliation of net loss, the most comparable
GAAP financial measure, to adjusted EBITDA for each of the periods presented:
|
|
For the 13 weeks ended |
|
For the 39 weeks ended |
||||||||||||
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
|
October 1, 2022 |
|
|
October 2, 2021 |
|
||||
Net loss |
|
$ |
(2,438,330 |
) |
|
$ |
(1,189,356 |
) |
|
$ |
(5,821,071 |
) |
|
$ |
(4,090,058 |
) |
Add (deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
21,885 |
|
|
|
229,657 |
|
|
|
51,485 |
|
|
|
584,466 |
|
Other
(income)/expense
|
|
|
- |
|
|
|
(442,352 |
) |
|
|
(286,795 |
) |
|
|
(429,045 |
) |
Provision for income
taxes
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,332 |
|
Depreciation and
amortization
|
|
|
7,670 |
|
|
|
5,226 |
|
|
|
19,989 |
|
|
|
21,355 |
|
Equity-based
compensation
|
|
|
303,980 |
|
|
|
- |
|
|
|
1,355,068 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(2,104,795 |
) |
|
$ |
(1,396,825 |
) |
|
$ |
(4,681,324 |
) |
|
$ |
(3,911,950 |
) |
See also “Non-GAAP Financial Measures”, above.
Contacts
Investor Relations Contact:
[email protected]
Media:
Julianne Beffa
(212) 399-2784