By Alan Hatfield
DTC fashion brands portfolio a.k.a Brands Holding Corp. (NYSE: AKA) said sales increased amid a key acquisition in the first quarter, boosting profit.
Net sales increased to $148.3 million, a 115.6% increase on the $68.8 million reported in the first quarter of 2021. The addition of streetwear-centric Culture Kings to the company’s portfolio brand portfolio contributed $48.9 million to net sales during the quarter.
Sales growth was paralleled by 54% growth in the U.S. market during the quarter, with a 46% increase in active customers to 3.8 million in total.
Adjusted net income came in at $2 million, or $0.02 per share, compared to $1.5 million in the year prior, while adjusted EBITDA came in at $10.7 million, or 7.2% of net sales, compared to $8.3 million, or 12.1% of net sales in the first quarter of 2021.
“I am very proud of our first quarter performance, which exceeded our expectations,” CEO Jill Ramsey said in a statement. “Net sales grew 116%, or 24% on a pro-forma basis, reflecting the power and agility of our next-gen business model as well as the strength of our diverse portfolio of brands.”