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On an adjusted 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 has reported an 8.8 per cent rise in net sales to $611.7 million in the fiscal year 2022 (FY22), as against $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 previous 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, Alias Brands reported an 18.3 percent decrease in net sales to $149.1 million, as against $182.4 million in the same period last year. The decrease was driven by a 14 percent decrease in the number of orders processed and an 8 percent decrease in average order value during the quarter. The decrease in orders and average order value was due to lower marketing expenses and a lower mix of full price items sold.
The company reported a decline in gross margin to 52.8 per cent in Q4 FY22 as against 54.6 per cent in the same period last year, primarily due to lower mix of full price items sold. 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 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 Q4 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 in 2022 for their unwavering dedication in the face of external pressures and a dynamic environment,” said Jill Ramsey, CEO, “As we moved through the quarter, we observed reduced marketing effectiveness given 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 profit. Additionally, as we aggressively tightened our inventory in the second half of the year, there were fewer new styles across our women’s brands during the peak holiday selling period. These decisions, combined with macroeconomic pressures, impacted our performance in the quarter. affected but enabled us to safeguard the integrity and sustainability of our brand and business model in the long run.
Fibre2Fashion News Desk (DP)