Kidpik reports 18.7 percent drop in Q1 revenue

Image: Kidpik, Facebook Kidswear subscription service Kidpik has reported a 18.7 percent drop in revenue in the first quarter of the year after announcing last month that changes in how data can be used by social media platforms will impact its trading. In the three months to April 1, the company made revenue of 4.3 million dollars, down from 5.3 million dollars in the same quarter a year ago. The total number of items the company shipped in the quarter dropped to 370,985 from 543,243 a year ago. On a brighter note, the average keep rate increased to 70.4 percent from 67.7 percent. When sharing its full-year results in April, Kidpik said changes in data access and availability across social media advertising platforms would impact new customer acquisitions. CEO Ezra Dabah told investors on Monday: “Lower customer acquisition rates across the traditional social advertising channels persisted throughout the industry in the first quarter, negatively impacting our net sales and results.” But he said this was partially offset by an improvement in the company’s online website sales. He continued: “We continue to see consistent gross margins of approximately 60 percent, and our ‘keep rate’ again surpassed 70 percent for the quarter. We are taking actions to increase conversions and optimize our acquisitions costs.” Kidpik’s gross margin fell to 59.9 percent from 60.9 percent in the prior year period. Its net loss expanded to 1.8 million dollars from 1.5 million dollars a year earlier, while its adjusted EBITDA loss was 1.5 million dollars compared to an EBITDA loss of 1.3 million dollars a year earlier.
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