Culture Kings’ parent company AKA Brands has recorded a 12.2 per cent fall in sales in the Australia/New Zealand market for the third quarter of 2024, offsetting a 20 per cent sales boom in the United States in the same period.
The group also manages two other Australian-born brands - Princess Polly and Petal & Pup - alongside US-born brand mnml.
Despite its sales fall in AU/NZ - which hit US$43.9 million (~A$65.7 million) - total sales for AKA Brands lifted by 6.4 per cent, hitting US$149.9 million. More than two-thirds of came from its US market, which peaked at just over US$100 million for the recent quarter.
AKA Brands CFO and interim CEO Ciaran Long said the result overall was strong, exceeding top and bottom-line expectations.
Alongside strong sales in the US, Long said its earnings before interest, tax, depreciation and amortisation (EBITDA) was just over US$8 million.
“This is an impressive 75 per cent increase compared to last year,” he said. “Our strong third quarter performance reflects our teams’ unwavering commitment to building next-generation brands and executing at the highest level to drive growth and profitability.”
Long added that much of the growth came from both DTC and omnichannel expansion initiatives. In 2024, Princess Polly continued its push into retail from its original pureplay model, opening three stores in San Diego, Scottsdale and Boston this year, with a landmark store opening in Soho, New York early next year.
Meanwhile, Culture Kings’ key in-house brand Loiter transitioned to a ‘test and repeat’ merchandising strategy, reportedly resulting in triple-digit revenue growth and “outpaced” margin dollar growth in the third quarter.
“Additionally, we’re thrilled that Petal & Pup has expanded into 40 Nordstrom stores based on the success of Petal & Pup’s performance on Nordstrom.com,” Long said.
“As we look ahead, we are well-positioned for continued profitable growth, and I’m confident in our ability to execute and deliver sustainable long-term shareholder value.”
Overall year-to-date sales over the last nine months were up 4.6 per cent to US$415.6 million, with the US market up 15.3 per cent while AU/NZ was down 11.8 per cent.
The group’s rest of the world market, which makes up a small portion, was also down in the double digits, with its year-to-date sales hitting just under US$20 million.