2023-04-19 09:31:34 ET
a.k.a. Brands Holding Corp. ( NYSE: AKA ) shares rocketed over 30% higher at Wednesday’s market open after providing an upbeat preliminary earnings update.
The San Francisco-based fashion company expects $120M in net sales for the first quarter, above the prior forecast of $113M to $116M and the Street consensus of $116.47M. A preliminary Q1 adjusted EBITDA guide of $2M to $2.2M also exceeded prior guidance of $1.5M to $1.8M. Net loss expectations were maintained in the Tuesday evening update .
“I’m proud of our solid performance in the first quarter of 2023, which exceeded our expectations on both the top line and on an Adjusted EBITDA basis,” Interim CEO Ciaran Long commented. “I’m pleased with the strength of our brands and our disciplined execution during the quarter. We remain laser-focused on balancing growth and profitability, and we are confident that our growth strategies, flexible operating model and talented teams will drive profitable growth.”
However, the company noted that it received a non-compliance notice from the NYSE on April 12. Management said that it “intends to cure the deficiency, which may include, if necessary, effecting a reverse stock split, subject to approval by the Board of Directors and stockholders of the Company.”
Shares of a.k.a. Brands ( AKA ) stock surged 31.76% after Wednesday's opening bell.
Read more on consensus estimates for the official earnings update scheduled for May 10 .
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a.k.a. Brands pops on positive preliminary results