Australian-born online retailer Princess Polly will open its first-ever store in the third quarter of the year, five years after its acquisition by A.K.A Brands.
The store, located in Los Angeles, is part of a broader rollout across the United States following a wholesale pilot launch with retailer PacSun earlier this year.
The original wholesale agreement will scale after a successful run of 50 Princess Polly styles online and 15 stores from 2023. PacSun currently operates over 350 stores across North America.
A.K.A Brands interim CEO Ciaran Long said while direct-to-consumer remains the priority, there are opportunities to expand the Gen Z womenswear brand through new channels.
“As we look ahead, we believe that key to building durable next-generation brands is to be everywhere our customers are,” Long said. "We remain laser focused on our growth initiatives."
A.K.A Brands also owns and operates Australian-born brands Petal & Pup and Culture Kings. Petal and Pup launched into Target U.S this year, while Culture Kings opened its first U.S flagship store in November 2022.
A.K.A Brands recorded a decrease in net sales for the first quarter of 2023, down 18.8% to US$120.5 million, compared to US$148.3 million in the first quarter of 2022.
The decrease was driven by a decline in order numbers and average order value during the corner, with macroeconomic conditions, promotional activity and changes in foreign currency rates also flagged.
The net loss was US$(9.6) million or US$(0.07) per share, and (7.9%) of net sales in the first quarter of 2023, compared to net income of US$1.5 million or US$0.01 per share, and 1.0% of net sales in the first quarter of 2022.
Adjusted earnings before interest and tax was US$2.2 million, or 1.8% of net sales, compared to US$10.7 million, or 7.2% of net sales in the first quarter of 2022.
"We are setting the stage for improved operating performance as the year progresses," Long said. "I’m particularly pleased with the incremental pay down of our debt in the quarter and our diligent approach to managing inventory. Our inventory balance is down 11% from the end of fiscal 2022 and down 7% from the first quarter last year.
"We are confident in our ability to deliver both growth and profit over the long-term, and plan to continue to pay down our debt as the year progresses."