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A.K.A. Brands, the US-based parent company of three Australian-born brands - Culture Kings, Petal & Pup and Princess Polly - has locked in Ciaran Long as its permanent CEO.
Long has been the interim CEO of A.K.A. Brands, on top of being CFO, since March 2023. Long held the CFO role since 2021, which has now been handed to Kevin Grant. Grant has been the vice president and global controller at the group since 2021.
The leadership change comes following another bump up in sales for the fourth quarter of 2024, according to new preliminary results.
A.K.A. Brands chairman Christopher Dean welcomed Long to the top role.
“Under Ciaran’s leadership, A.K.A. Brands has achieved significant milestones, including a return to net sales growth, three consecutive quarters of double-digit U.S. sales expansion, and a meaningful increase in adjusted EBITDA year-over-year.
“Ciaran is a strategic and seasoned leader who has driven organizational change across the business, and we’re confident that his robust understanding of the business and proven track record make him the ideal candidate to lead the company.”
Speaking on the latest fourth quarter result, Long confirmed that net sales increased by 6.8 per cent to US$159 million (~A$256 million), with the US market leading the charge. Net sales in the US market were up 21.6 per cent to around US$96.1 million.
“Further demonstrating the power of our business model, we are raising our adjusted EBITDA expectations to be between $6.0 and $6.2 million,” Long said.
The ongoing lifts in revenue come amid further investments in direct-to-consumer channels, with Petal & Pup expected to be available across all Nordstroms stores in April/May this year. Long also confirmed that Princess Polly opened two new stores in California in the fourth quarter, and is on track to open its first store in New York City early this year.
“Our strong fourth-quarter results, combined with continued progress across our strategic initiatives, highlight the significant growth opportunities ahead and our ability to deliver value over the long-term.”
Meanwhile, net sales for the full-year 2024 for A.K.A Brands were up 5.2 per cent to around US$574.7 million. Net sales in the US increased 16.9 per cent to approximately US$368.8 million.
The company did not share any fiscal updates for the Australia/New Zealand market, however past results indicate that ANZ makes up nearly a third of the group’s sales. A.K.A Brands reported in its third quarter results of 2024 that the ANZ market particularly faced macroeconomic pressures, where sales dropped by 12.2 per cent.
The company now expects adjusted EBITDA to be between US$23 to US$23.2 million for the full year 2024, compared to US$13.8 million for fiscal year 2023.