KIDPIK Unveils Financial Performance for Fourth Quarter and Full Year of 2023

Kidpik Corp., a leading online clothing subscription-based e-commerce company, has released its financial performance for the fourth quarter and fiscal year 2023, ending on December 30, 2023. Here are the key highlights:

Fourth Quarter 2023 Highlights:

  • Net Revenue: Recorded at $3.4 million, experiencing a 28.9% decrease compared to the previous year.
  • Gross Margin: Stood at negative 16.2%, primarily due to a one-time inventory write-down of $2.9 million. Without this adjustment, the gross margin would have been 69.5%, down from 58.9% in the fourth quarter of 2022.
  • Shipped Items: Totaled 285,000 items, down from 374,000 shipped items in the fourth quarter of 2022.
  • Average Shipment Keep Rate: Improved to 66.2%, compared to 65.3% in the fourth quarter of 2022.
  • Net Loss: Reported at $4.0 million or $2.14 per share.
  • Adjusted EBITDA: A loss of $3.9 million.

Full Year 2023 Financial Highlights:

  • Net Revenue: Amounted to $14.2 million, reflecting a 13.6% decrease from the previous year.
  • Gross Margin: Dropped to 42.2%, down 17.7 basis points from 59.9% in 2022.
  • Shipped Items: Declined to 1.2 million items from 1.5 million shipped items in 2022.
  • Average Shipment Keep Rate: Increased to 72.8%, compared to 68.3% in the previous year.
  • Net Loss: Stood at $9.9 million, or $6.04 per share.
  • Adjusted EBITDA: A loss of $8.8 million.

CEO Ezra Dabah commented on the company’s strategic moves during the fourth quarter, emphasizing efforts to reduce inventory levels and halt new inventory purchases. Additionally, Kidpik announced a significant development regarding its merger with Nina Footwear Corp., which is expected to enhance Kidpik’s revenue, cash flow, and shareholder value.

The merger is pending customary closing conditions, including the preparation and dissemination of a proxy statement and obtaining necessary approvals from both Kidpik and Nina Footwear stockholders. It is anticipated to conclude in the third quarter of 2024.

Revenue by Subscription for the year ended 2023:

  • Active Subscriptions (recurring boxes): Decreased by 20.0% to $8.8 million.
  • New Subscriptions (first boxes): Decreased by 12.5% to $1.6 million.
  • Total Subscriptions: Decreased by 18.9% to $10.4 million, representing 73.2% of total revenue.

Balance Sheet and Cash Flow:

  • Cash: Amounted to $0.2 million at the end of the fourth quarter, down from $0.6 million the previous year.
  • Net Cash from Operating Activities: Decreased to $0.3 million in 2023, compared to $6.6 million used in operating activities in 2022.
  • Financial Position: As of December 30, 2023, Kidpik had $6.0 million in total current assets, $5.3 million in total current liabilities, and a working capital of $0.7 million.

Kidpik has decided not to hold an earnings call to discuss its fourth quarter 2023 or year-end 2023 results as it progresses with the merger.

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