Kidpik Corp. (NASDAQ: PIK) (“KIDPIK” or the “Company”), an online clothing subscription-based e-commerce company, today reported its financial results for the first quarter ended April 1, 2022.
First Quarter Highlights:
- Revenue, net: was $4.3 million, a year over year decrease of 18.7%
- Gross margin: was 59.9%, compared with 60.9% in the first quarter of 2021
- Shipped items: were 370,985 items, compared to 543,243 shipped items in the first quarter of 2021
- Average shipment keep rate: increased to 70.4%, compared to 67.7% in the first quarter of 2021
- Net Loss: was $1.8 million or $0.24 per share
- Adjusted EBITDA: was a loss of $1.5 million
“Lower customer acquisition rates across the traditional social advertising channels persisted throughout the industry in the first quarter, negatively impacting our net sales and results. This was partially offset by improvement in our KIDPIK shop online website sales,” commented Ezra Dabah, CEO of KIDPIK. “We continue to see consistent gross margins of approximately 60%, and our ‘keep rate’ again surpassed 70% for the quarter. We are taking actions to increase conversions and optimize our acquisitions costs.”
“The online shopping experience our platform provides remains a valued service for families, and we continue to work hard to delight our members. We recently introduced our Summer 2022 subscription box offerings, which now give customers the option to receive a box that contains either 8 or 12 items, as opposed to just 8 items that we’ve traditionally offered. Given we are seeing about half of new subscribers opt for the 12-piece box, this will positively impact our future sales. We continue to pursue additional channels to attract new members, including a third-party software we’ve engaged that will allow us to sell the KIDPIK brand on other top retailer’s e-commerce platforms. We remain dedicated to providing our members with the best possible experience when it comes to outfitting their kids, and to delivering value for our stockholders,” concluded Mr. Dabah.
Revenue by Subscription (For first quarter 2022)
Active Subscriptions (recurring boxes): decreased 16.0% to $3.1 million
New Subscriptions (first boxes): decreased 59.2% to 0.35 million
Total Subscriptions: decreased 24.0% to $3.5 million or 81.0% of total revenue
Balance Sheet and Cash Flow
- Cash at the end of the first quarter totaled $5.4 million compared to $8.4 million as of 1/01/2022
- Net cash used in operating activities was $2.2 million compared to $2.7 million of cash used in operating activities in the first quarter of 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.
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 10167253. The replay will be available until May 23, 2022.
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