US’ alias brand net sales rose to $611.7 million in FY22

US-based digital fashion company aka Brands Holding Corp posted an 8.8 percent rise in net sales to $611.7 million in fiscal year 2022 (FY22), compared to $562.2 million in the previous year. However, net loss for the year was $176.7 million, or $1.37 per share, compared to a net loss of $6 million, or $0.06 per share, in the prior year.

On a consolidated basis, net loss in FY22 was $5.7 million or $0.04 per share, compared to net income of $14.2 million or $0.15 per share in the prior year.

US-based digital fashion company aka Brands Holding Corp posted an 8.8 percent rise in net sales to $611.7 million in fiscal year 2022 (FY22), compared to $562.2 million in the previous year. However, net loss for the year was $176.7 million, or $1.37 per share, compared to a net loss of $6 million, or $0.06 per share, in the prior year.

Adjusted EBITDA in FY22 was $31.9 million, or 5.2 percent of net sales, compared to $62.4 million, or 11.1 percent of net sales, in the prior year.

In the fourth quarter (Q4) of fiscal year 2022, Ali Brands reported a 18.3 percent decrease in net sales to $149.1 million compared to $182.4 million in the same period last year. The decline was driven by a 14 percent decline in the number of orders processed during the quarter and an 8 percent decline in average order value. Orders and average order value decreased due to lower marketing costs and a lower mix of selling full price items.

The company saw its gross margin decline to 52.8 percent in Q4 FY22, compared to 54.6 percent in the same period last year, primarily due to a lower mix of sales of full-price items. Selling expenses were $39 million, compared to $45.5 million in the same period last year, while marketing expenses were $15.4 million, compared to $21.5 million in the same period last year.

Adjusted EBITDA in Q4 of FY22 was $6.1 million, or 4.1 percent of net sales, compared to $16.1 million, or 8.8 percent of net sales in the fourth quarter of FY21.

For FY23, Alias ​​Brands expects net sales between $570 million and $600 million and adjusted EBITDA between $35 million and $37 million. For the first quarter of FY23, the company expects net sales between $113 million and $116 million and adjusted EBITDA between $1.5 million and $1.8 million.

“I want to recognize our brands and teams for their unwavering dedication in the face of external pressures and a dynamic environment in 2022,” said Jill Ramsey, CEO. “As we went through the quarter, we saw lower marketing effectiveness due to the highly promotional environment, and we made the strategic decision to reduce our spending compared to last year in an effort to balance growth and profitability. Additionally, we aggressively tightened our inventory in the second half of the year, so our women’s brands had fewer new styles during peak holiday sales. These decisions, coupled with macroeconomic pressures, impacted our performance in the quarter but enabled us to protect the integrity and sustainability of our brand and business model over the long term.”

Fibre2Fashion News Desk (DP)