On March 1, 2022, AKA Brands Holding Corp. (AKA) declared its Q4 and fiscal 2021 financial results. Consequently, the stock took a harsh hit in the following trading session on March 2. After plummeting to a new low, the stock rebounded and entered green in the after-hours on Wednesday.
In the regular session on Wednesday, AKA stock reached its new 52-week low of $5.05. The stock closed the session just above the low at $5.11 while 1.82 million shares exchanged hands. The day’s volume remained 608% of its average 298.98K shares. Following this, the stock made a comeback in the after-hours to add 3.52%. Thus, the stock reached a value of $5.29 in the after-hours session.
The digital platform operator, a.k.a. Brands Holding Corp. provides a portfolio of online fashion products. Currently, its 128.65 million outstanding shares trade at a market capitalization of $897.96 million.
What is happening?
The company posted its latest earnings on Tuesday after the market closed. Investors were not pleased with the earnings which ultimately resulted in the downfall of the stock on Wednesday. So much so that the stock plunged down to a new 52-week low. It seems the new low presented itself as a good opportunity to buy the stock. Hence, it seems the stock recovered in the after-hours as investors restocked their shares at a low price. Moreover, the downfall also warranted a comeback.
AKA’s 2021 Financials
Net Sales
The company reported net sales of $182.4 million for Q4 2021 and $562.2 million for the full year 2021. This represents a respective increase of 157.7% and 160.4% YOY against Q4 and fiscal 2020.
Adjusted Net Income
The company had adjusted net income of $4.3 million or $0.03/share in Q4 2021, against $51. Million or $0.07/share in the year-ago quarter.
Moreover, the adjusted net income was $14.1 million or $0.15/share in fiscal 2021, against $14.3 million or $0.21/share in the previous year.
2022 Outlook
For Q1 2022, the company expects net sales of $140-$145 million with adjusted EBITDA of $9.5-$10.5 million. Additionally, AKA expects net sales of $785-$805 million with adjusted EBITDA of $90-$100 million for fiscal 2022.
U.S. Culture Kings Flagship Store
On March 1, the company also announced signing a lease with intent for opening its first U.S. Culture Kings flagship store in late 2022. The store will be opened at The Forum Shops at Caesars in Las Vegas, Nevada.
