Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Kidpik Reports Third Quarter 2021 Financial Results By: Kidpik Corp. via Business Wire December 21, 2021 at 16:05 PM EST Kidpik Corp. (“KIDPIK” or the “Company”), an online clothing subscription-based e-commerce company, today reported its financial results for its third quarter of 2021. Quarter highlights: Revenue, net: increased 20.3% to $5,574,099 compared to $4,634,529 in the third quarter of 2020. Subscription box revenue, net: was 85.1% of total revenue in Q3 2021 or $4,745,933, compared to $4,016,696 in Q3 2020. Gross Margin: was 58.2% compared to 59.3% in the third quarter of 2020 Shipped items: increased by 18.9% to 559,000 shipped items, compared to 470,000 shipped items in the third quarter of 2020 Average shipments keep rate: was 68.8% compared to 68.2% in the third quarter of 2020 Net Loss: was $1,189,356 or $(0.22) loss per share, compared to $978,251 or $(0.26) loss per share in the third quarter of 2020. “We’re pleased to report Q3 and nine-month net sales of $5.6 million and $16.6 million, an increase of 20.3% and 49.5% respectively, with nine-month subscription-based recurring revenue of $14.2 million or 85.5% of total revenue,” said Ezra Dabah, CEO of Kidpik Corp. “Our performance was driven mainly by the introduction of boys’ subscription boxes, the continued growth of our girls’ subscriptions and the newly introduced toddler box collection.” “We are happy to have completed an upsized IPO of $18 million and to be listed on Nasdaq after the quarter end,” continued Mr. Dabah. “Strengthening our balance sheet gives us the ability to make further investments in building our brand, growing our revenue, and driving shareholder value. We look forward to achieving our growth objectives by leveraging our merchandising expertise, the technology we have built, and the knowledge our team has gained over the last five years in the rapidly growing subscription industry.” Revenue by Subscription (Measured for 39 weeks ended October 2, 2021) Active Subscriptions (recurring boxes): increased 55.7% to $11.5 million New Subscriptions (first boxes): increased 14.9% to $2.7 million Total Subscriptions: increased 45.8% to $14.2 million or 85.5% of total revenue. Balance Sheet and Cash Flow Cash and cash equivalents at the end of the third quarter totaled $204,877 compared to $133,484 million at January 2, 2021. After quarter end, Kidpik completed an IPO, issuing 2,117,647 shares of common stock at a public offering price of $8.50 per share, resulting in aggregate net proceeds of approximately $16.1 million. Line of credit at the end of the third quarter totaled $3.2 million, compared to $2.5 million at the end of fiscal year 2020. In November 2021, the Company paid in full the outstanding line of credit amount. Net cash used in operating activities increased to $5,637,368 for the 39 weeks ended October 2, 2021, compared to $2,385,563 of cash used in operating activities during the 39 weeks ended September 26, 2020. Kidpik Corp. Condensed Interim Statements of Operations (Unaudited) For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenues, net $ 5,574,099 $ 4,634,529 $ 16,562,579 $ 11,076,010 Cost of goods sold 2,327,335 1,884,898 6,659,012 4,553,832 Gross profit 3,246,764 2,749,631 9,903,567 6,522,178 Operating expenses Shipping and handling 1,451,065 1,047,097 4,543,341 2,693,062 Payroll and related costs 1,023,241 753,222 2,953,993 2,045,415 General and administrative 2,169,283 1,790,401 6,318,183 4,301,533 Depreciation and amortization 5,226 13,770 21,355 58,063 Total operating expenses 4,648,815 3,604,490 13,836,872 9,098,073 Operating loss (1,402,051 ) (854,859 ) (3,933,305 ) (2,575,895 ) Other (income) expenses Interest expense 229,657 122,567 584,466 308,153 Other (income)/expense (442,352 ) - (429,045 ) 10,000 Total other (income) expenses (212,695 ) 122,567 155,421 318,153 Loss before provision for income taxes (1,189,356 ) (977,426 ) (4,088,726 ) (2,894,048 ) Provision for income taxes 825 1,332 1,122 Net loss $ (1,189,356 ) $ (978,251 ) $ (4,090,058 ) $ (2,895,170 ) Net loss per share attributable to common stockholders: Basic $ (0.22 ) $ (0.26 ) $ (0.77 ) $ (0.78 ) Diluted $ (0.22 ) $ (0.26 ) $ (0.77 ) $ (0.78 ) Weighted average common shares outstanding: Basic 5,500,187 3,735,457 5,300,308 3,735,457 Diluted 5,500,187 3,735,457 5,300,308 3,735,457 Kidpik Corp. Condensed Interim Balance Sheets October 2, 2021 (Unaudited) January 2, 2021 Assets Current assets Cash $ 204,877 $ 133,484 Restricted cash 149,268 551,812 Accounts receivable 373,071 320,446 Inventory 8,604,004 7,480,072 Prepaid expenses and other current assets 1,115,264 822,580 Total current assets 10,446,484 9,308,394 Leasehold improvements and equipment, net 7,133 27,874 Intangible assets, net 614 Total assets $ 10,453,617 $ 9,336,882 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 2,837,075 $ 2,960,687 Due to related party 1,219,038 599,811 Accrued expenses and other current liabilities 507,985 690,049 Advance payable 1,196,742 829,030 Loan payable, current portion 91,429 Short-term debt, related party 1,300,000 - Line of credit 3,200,000 2,032,118 Total current liabilities 10,260,840 7,203,124 Loan payable, less current portion 350,923 Total liabilities 10,260,840 7,554,047 Commitments and contingencies Stockholders’ equity Preferred stock (par value $0.001, 25,000,000 shares authorized, of which no shares are issued and outstanding as of October 2, 2021 and January 2, 2021) - - Common stock (par value $0.001, 75,000,000 shares authorized, of which 5,500,187 and 5,075,444 shares are issued and outstanding as of October 2, 2021 and January 2, 2021) 5,500 5,075 Additional paid-in capital 32,248,972 29,749,397 Accumulated stockholders’ deficit (32,061,695 ) (27,971,637 ) Total stockholders’ equity 192,777 1,782,835 Total liabilities and stockholders’ equity $ 10,453,617 $ 9,336,882 Kidpik Corp. Condensed Interim Statements of Cash Flows (Unaudited) For the 39 weeks ended October 2, 2021 September 26, 2020 Cash flows from operating activities Net loss $ (4,090,058 ) $ (2,895,170 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 21,355 58,062 Amortization of debt issuance costs 29,377 20,955 Forgiveness of loan payable (442,352) - Bad debt expense 614,239 348,236 Changes in operating assets and liabilities: Accounts receivable (666,864 ) (320,236 ) Inventory (1,123,932 ) (482,361 ) Prepaid expenses and other current assets (292,684 ) (116,957 ) Accounts payable (123,612 ) 660,541 Accounts payable, related parties 619,227 309,747 Accrued expenses and other current liabilities (182,064 ) 31,620 Net cash used in operating activities (5,637,368 ) (2,385,563 ) Cash flows from investing activities Purchases of leasehold improvements and equipment - (7,683 ) Net cash used in investing activities - (7,683 ) Cash flows from financing activities Proceeds from issuance of long-term debt from related party 2,000,000 1,000,000 Proceeds from issuance of common stock 500,000 - Net proceeds (repayments) from line of credit 1,138,505 (63,365 ) Net proceeds (repayments) from advance payable 367,712 (274,374 ) Proceeds from loan payable - 442,352 Proceeds from loan payable related party 1,300,000 810,000 Net cash provided by financing activities 5,306,217 1,914,613 Net decrease in cash and restricted cash (331,151 ) (478,633 ) Cash and restricted cash, beginning of period 685,296 631,320 Cash and restricted cash, end of period $ 354,145 $ 152,687 Reconciliation of cash and restricted cash: Cash $ 204,877 $ 99,297 Restricted cash 149,268 53,390 $ 354,145 $ 152,687 Supplemental disclosure of cash flow data: Interest paid $ 500,905 $ 291,056 Taxes paid $ 1,332 $ 297 Supplemental disclosure of noncash financing activities: Conversion of shareholder debt $ 2,000,000 $ - Revenue, net The Company’s revenue, net is disaggregated based on the following categories: For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Subscription boxes $ 4,745,933 4,016,696 $ 14,163,217 $ 9,712,382 Amazon sales 568,947 485,599 1,893,814 1,064,678 Online website sales 259,219 132,234 505,548 298,950 Total revenue $ 5,574,099 $ 4,634,529 $ 16,562,579 $ 11,076,010 Gross Margin Gross profit is equal to our net sales (revenues, net) less cost of goods sold. Gross profit as a percentage of our net sales is referred to as gross margin. Cost of sales consists of the purchase price of merchandise sold to customers and includes import duties and other taxes, freight in, defective merchandise returned from customers, receiving costs, inventory write-offs, and other miscellaneous shrinkage. For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Gross margin 58.2 % 59.3 % 59.8 % 58.9 % Shipped Items We define shipped items as the total number of items shipped in a given period to our customers through our active subscription, Amazon and online website sales. For the 13 weeks ended For the 39 weeks ended (In thousands) (In thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Shipped Items 559 470 1,680 1,139 Average Shipment Keep Rate Average shipment keep rate is calculated as the total number of items kept by our customers divided by total number of shipped items in a given period. For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Average Shipment Keep Rate 68.8 % 68.2 % 68.5 % 67.0 % Revenue by Channel 13 weeks ended October 2, 2021 13 weeks ended September 26, 2020 Change ($) Change (%) Revenue by channel Subscription boxes $ 4,745,933 4,016,696 729,237 18.2 % Amazon sales 568,947 485,599 83,348 17.2 % Online website sales 259,219 132,234 126,985 96.0 % Total revenue $ 5,574,099 $ 4,634,529 $ 939,570 20.3 % 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Revenue by channel Subscription boxes $ 14,163,217 $ 9,712,382 $ 4,450,835 45.8 % Amazon sales 1,893,814 1,064,678 829,136 77.9 % Online website sales 505,548 298,950 206,598 69.1 % Total revenue $ 16,562,579 $ 11,076,010 $ 5,486,569 49.5 % Subscription Boxes Revenue 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Subscription boxes revenue from Active subscriptions – recurring boxes $ 11,474,502 $ 7,371,851 $ 4,102,652 55.7 % New subscriptions - first box 2,688,715 2,340,531 348,183 14.9 % Total Subscription boxes revenue $ 14,163,217 $ 9,712,382 $ 4,450,835 45.8 % Revenue by Product Line 13 weeks ended October 2, 2021 13 weeks ended September 26, 2020 Change ($) Change (%) Revenue by product line Girls’ apparel $ 4,189,538 $ 3,941,463 $ 248,075 6.3 % Boys’ apparel 1,111,509 693,066 418,443 60.4 % Toddlers’ apparel 273,052 - 273,052 n/a % Total revenue $ 5,574,099 $ 4,634,529 $ 939,570 20.3 % 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Revenue by product line Girls’ apparel $ 12,647,081 $ 10,374,374 $ 2,272,707 21.9 % Boys’ apparel 3,341,419 701,636 2,639,783 376.2 % Toddlers’ apparel 574,079 - 574,079 n/a % Total revenue $ 16,562,579 $ 11,076,010 $ 5,486,569 49.5 % Earnings Call Information: Today at 4:30pm ET a live webcast will be accessible at the following link on the investor relations section of the KIDPIK website at https://investor.kidpik.com. Analysts and investors may also call in by dialing (877)-545-0320 or (973)-528-0002 for international callers, conference ID 315694. A replay of the conference call will be available approximately two hours after the conclusion of the call on the investor relations section of the KIDPIK website at https://investor.kidpik.com or by dialing (877)-481-4010 or (919)-882-2331 for international callers, conference ID 43975. The replay will be available until December 28, 2021. About Kidpik Corp. Founded in 2016, KIDPIK (NASDAQ:PIK) is an online clothing subscription box for kids, offering mix-&-match, expertly styled outfits that are curated based on each member’s style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids' unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com. Forward-Looking Statements This press release contains statements that constitute “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to the Company on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the “Risk Factors” section of the Company's Registration Statement and preliminary prospectus for the offering filed with the SEC. Thus, actual results could be materially different. The Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20211221005708/en/Contacts Investor Relations Contact: James Carbonara ir@kidpik.com Media: press@kidpik.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Kidpik Reports Third Quarter 2021 Financial Results By: Kidpik Corp. via Business Wire December 21, 2021 at 16:05 PM EST Kidpik Corp. (“KIDPIK” or the “Company”), an online clothing subscription-based e-commerce company, today reported its financial results for its third quarter of 2021. Quarter highlights: Revenue, net: increased 20.3% to $5,574,099 compared to $4,634,529 in the third quarter of 2020. Subscription box revenue, net: was 85.1% of total revenue in Q3 2021 or $4,745,933, compared to $4,016,696 in Q3 2020. Gross Margin: was 58.2% compared to 59.3% in the third quarter of 2020 Shipped items: increased by 18.9% to 559,000 shipped items, compared to 470,000 shipped items in the third quarter of 2020 Average shipments keep rate: was 68.8% compared to 68.2% in the third quarter of 2020 Net Loss: was $1,189,356 or $(0.22) loss per share, compared to $978,251 or $(0.26) loss per share in the third quarter of 2020. “We’re pleased to report Q3 and nine-month net sales of $5.6 million and $16.6 million, an increase of 20.3% and 49.5% respectively, with nine-month subscription-based recurring revenue of $14.2 million or 85.5% of total revenue,” said Ezra Dabah, CEO of Kidpik Corp. “Our performance was driven mainly by the introduction of boys’ subscription boxes, the continued growth of our girls’ subscriptions and the newly introduced toddler box collection.” “We are happy to have completed an upsized IPO of $18 million and to be listed on Nasdaq after the quarter end,” continued Mr. Dabah. “Strengthening our balance sheet gives us the ability to make further investments in building our brand, growing our revenue, and driving shareholder value. We look forward to achieving our growth objectives by leveraging our merchandising expertise, the technology we have built, and the knowledge our team has gained over the last five years in the rapidly growing subscription industry.” Revenue by Subscription (Measured for 39 weeks ended October 2, 2021) Active Subscriptions (recurring boxes): increased 55.7% to $11.5 million New Subscriptions (first boxes): increased 14.9% to $2.7 million Total Subscriptions: increased 45.8% to $14.2 million or 85.5% of total revenue. Balance Sheet and Cash Flow Cash and cash equivalents at the end of the third quarter totaled $204,877 compared to $133,484 million at January 2, 2021. After quarter end, Kidpik completed an IPO, issuing 2,117,647 shares of common stock at a public offering price of $8.50 per share, resulting in aggregate net proceeds of approximately $16.1 million. Line of credit at the end of the third quarter totaled $3.2 million, compared to $2.5 million at the end of fiscal year 2020. In November 2021, the Company paid in full the outstanding line of credit amount. Net cash used in operating activities increased to $5,637,368 for the 39 weeks ended October 2, 2021, compared to $2,385,563 of cash used in operating activities during the 39 weeks ended September 26, 2020. Kidpik Corp. Condensed Interim Statements of Operations (Unaudited) For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenues, net $ 5,574,099 $ 4,634,529 $ 16,562,579 $ 11,076,010 Cost of goods sold 2,327,335 1,884,898 6,659,012 4,553,832 Gross profit 3,246,764 2,749,631 9,903,567 6,522,178 Operating expenses Shipping and handling 1,451,065 1,047,097 4,543,341 2,693,062 Payroll and related costs 1,023,241 753,222 2,953,993 2,045,415 General and administrative 2,169,283 1,790,401 6,318,183 4,301,533 Depreciation and amortization 5,226 13,770 21,355 58,063 Total operating expenses 4,648,815 3,604,490 13,836,872 9,098,073 Operating loss (1,402,051 ) (854,859 ) (3,933,305 ) (2,575,895 ) Other (income) expenses Interest expense 229,657 122,567 584,466 308,153 Other (income)/expense (442,352 ) - (429,045 ) 10,000 Total other (income) expenses (212,695 ) 122,567 155,421 318,153 Loss before provision for income taxes (1,189,356 ) (977,426 ) (4,088,726 ) (2,894,048 ) Provision for income taxes 825 1,332 1,122 Net loss $ (1,189,356 ) $ (978,251 ) $ (4,090,058 ) $ (2,895,170 ) Net loss per share attributable to common stockholders: Basic $ (0.22 ) $ (0.26 ) $ (0.77 ) $ (0.78 ) Diluted $ (0.22 ) $ (0.26 ) $ (0.77 ) $ (0.78 ) Weighted average common shares outstanding: Basic 5,500,187 3,735,457 5,300,308 3,735,457 Diluted 5,500,187 3,735,457 5,300,308 3,735,457 Kidpik Corp. Condensed Interim Balance Sheets October 2, 2021 (Unaudited) January 2, 2021 Assets Current assets Cash $ 204,877 $ 133,484 Restricted cash 149,268 551,812 Accounts receivable 373,071 320,446 Inventory 8,604,004 7,480,072 Prepaid expenses and other current assets 1,115,264 822,580 Total current assets 10,446,484 9,308,394 Leasehold improvements and equipment, net 7,133 27,874 Intangible assets, net 614 Total assets $ 10,453,617 $ 9,336,882 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 2,837,075 $ 2,960,687 Due to related party 1,219,038 599,811 Accrued expenses and other current liabilities 507,985 690,049 Advance payable 1,196,742 829,030 Loan payable, current portion 91,429 Short-term debt, related party 1,300,000 - Line of credit 3,200,000 2,032,118 Total current liabilities 10,260,840 7,203,124 Loan payable, less current portion 350,923 Total liabilities 10,260,840 7,554,047 Commitments and contingencies Stockholders’ equity Preferred stock (par value $0.001, 25,000,000 shares authorized, of which no shares are issued and outstanding as of October 2, 2021 and January 2, 2021) - - Common stock (par value $0.001, 75,000,000 shares authorized, of which 5,500,187 and 5,075,444 shares are issued and outstanding as of October 2, 2021 and January 2, 2021) 5,500 5,075 Additional paid-in capital 32,248,972 29,749,397 Accumulated stockholders’ deficit (32,061,695 ) (27,971,637 ) Total stockholders’ equity 192,777 1,782,835 Total liabilities and stockholders’ equity $ 10,453,617 $ 9,336,882 Kidpik Corp. Condensed Interim Statements of Cash Flows (Unaudited) For the 39 weeks ended October 2, 2021 September 26, 2020 Cash flows from operating activities Net loss $ (4,090,058 ) $ (2,895,170 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 21,355 58,062 Amortization of debt issuance costs 29,377 20,955 Forgiveness of loan payable (442,352) - Bad debt expense 614,239 348,236 Changes in operating assets and liabilities: Accounts receivable (666,864 ) (320,236 ) Inventory (1,123,932 ) (482,361 ) Prepaid expenses and other current assets (292,684 ) (116,957 ) Accounts payable (123,612 ) 660,541 Accounts payable, related parties 619,227 309,747 Accrued expenses and other current liabilities (182,064 ) 31,620 Net cash used in operating activities (5,637,368 ) (2,385,563 ) Cash flows from investing activities Purchases of leasehold improvements and equipment - (7,683 ) Net cash used in investing activities - (7,683 ) Cash flows from financing activities Proceeds from issuance of long-term debt from related party 2,000,000 1,000,000 Proceeds from issuance of common stock 500,000 - Net proceeds (repayments) from line of credit 1,138,505 (63,365 ) Net proceeds (repayments) from advance payable 367,712 (274,374 ) Proceeds from loan payable - 442,352 Proceeds from loan payable related party 1,300,000 810,000 Net cash provided by financing activities 5,306,217 1,914,613 Net decrease in cash and restricted cash (331,151 ) (478,633 ) Cash and restricted cash, beginning of period 685,296 631,320 Cash and restricted cash, end of period $ 354,145 $ 152,687 Reconciliation of cash and restricted cash: Cash $ 204,877 $ 99,297 Restricted cash 149,268 53,390 $ 354,145 $ 152,687 Supplemental disclosure of cash flow data: Interest paid $ 500,905 $ 291,056 Taxes paid $ 1,332 $ 297 Supplemental disclosure of noncash financing activities: Conversion of shareholder debt $ 2,000,000 $ - Revenue, net The Company’s revenue, net is disaggregated based on the following categories: For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Subscription boxes $ 4,745,933 4,016,696 $ 14,163,217 $ 9,712,382 Amazon sales 568,947 485,599 1,893,814 1,064,678 Online website sales 259,219 132,234 505,548 298,950 Total revenue $ 5,574,099 $ 4,634,529 $ 16,562,579 $ 11,076,010 Gross Margin Gross profit is equal to our net sales (revenues, net) less cost of goods sold. Gross profit as a percentage of our net sales is referred to as gross margin. Cost of sales consists of the purchase price of merchandise sold to customers and includes import duties and other taxes, freight in, defective merchandise returned from customers, receiving costs, inventory write-offs, and other miscellaneous shrinkage. For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Gross margin 58.2 % 59.3 % 59.8 % 58.9 % Shipped Items We define shipped items as the total number of items shipped in a given period to our customers through our active subscription, Amazon and online website sales. For the 13 weeks ended For the 39 weeks ended (In thousands) (In thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Shipped Items 559 470 1,680 1,139 Average Shipment Keep Rate Average shipment keep rate is calculated as the total number of items kept by our customers divided by total number of shipped items in a given period. For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Average Shipment Keep Rate 68.8 % 68.2 % 68.5 % 67.0 % Revenue by Channel 13 weeks ended October 2, 2021 13 weeks ended September 26, 2020 Change ($) Change (%) Revenue by channel Subscription boxes $ 4,745,933 4,016,696 729,237 18.2 % Amazon sales 568,947 485,599 83,348 17.2 % Online website sales 259,219 132,234 126,985 96.0 % Total revenue $ 5,574,099 $ 4,634,529 $ 939,570 20.3 % 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Revenue by channel Subscription boxes $ 14,163,217 $ 9,712,382 $ 4,450,835 45.8 % Amazon sales 1,893,814 1,064,678 829,136 77.9 % Online website sales 505,548 298,950 206,598 69.1 % Total revenue $ 16,562,579 $ 11,076,010 $ 5,486,569 49.5 % Subscription Boxes Revenue 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Subscription boxes revenue from Active subscriptions – recurring boxes $ 11,474,502 $ 7,371,851 $ 4,102,652 55.7 % New subscriptions - first box 2,688,715 2,340,531 348,183 14.9 % Total Subscription boxes revenue $ 14,163,217 $ 9,712,382 $ 4,450,835 45.8 % Revenue by Product Line 13 weeks ended October 2, 2021 13 weeks ended September 26, 2020 Change ($) Change (%) Revenue by product line Girls’ apparel $ 4,189,538 $ 3,941,463 $ 248,075 6.3 % Boys’ apparel 1,111,509 693,066 418,443 60.4 % Toddlers’ apparel 273,052 - 273,052 n/a % Total revenue $ 5,574,099 $ 4,634,529 $ 939,570 20.3 % 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Revenue by product line Girls’ apparel $ 12,647,081 $ 10,374,374 $ 2,272,707 21.9 % Boys’ apparel 3,341,419 701,636 2,639,783 376.2 % Toddlers’ apparel 574,079 - 574,079 n/a % Total revenue $ 16,562,579 $ 11,076,010 $ 5,486,569 49.5 % Earnings Call Information: Today at 4:30pm ET a live webcast will be accessible at the following link on the investor relations section of the KIDPIK website at https://investor.kidpik.com. Analysts and investors may also call in by dialing (877)-545-0320 or (973)-528-0002 for international callers, conference ID 315694. A replay of the conference call will be available approximately two hours after the conclusion of the call on the investor relations section of the KIDPIK website at https://investor.kidpik.com or by dialing (877)-481-4010 or (919)-882-2331 for international callers, conference ID 43975. The replay will be available until December 28, 2021. About Kidpik Corp. Founded in 2016, KIDPIK (NASDAQ:PIK) is an online clothing subscription box for kids, offering mix-&-match, expertly styled outfits that are curated based on each member’s style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids' unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com. Forward-Looking Statements This press release contains statements that constitute “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to the Company on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the “Risk Factors” section of the Company's Registration Statement and preliminary prospectus for the offering filed with the SEC. Thus, actual results could be materially different. The Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20211221005708/en/Contacts Investor Relations Contact: James Carbonara ir@kidpik.com Media: press@kidpik.com
Kidpik Corp. (“KIDPIK” or the “Company”), an online clothing subscription-based e-commerce company, today reported its financial results for its third quarter of 2021. Quarter highlights: Revenue, net: increased 20.3% to $5,574,099 compared to $4,634,529 in the third quarter of 2020. Subscription box revenue, net: was 85.1% of total revenue in Q3 2021 or $4,745,933, compared to $4,016,696 in Q3 2020. Gross Margin: was 58.2% compared to 59.3% in the third quarter of 2020 Shipped items: increased by 18.9% to 559,000 shipped items, compared to 470,000 shipped items in the third quarter of 2020 Average shipments keep rate: was 68.8% compared to 68.2% in the third quarter of 2020 Net Loss: was $1,189,356 or $(0.22) loss per share, compared to $978,251 or $(0.26) loss per share in the third quarter of 2020. “We’re pleased to report Q3 and nine-month net sales of $5.6 million and $16.6 million, an increase of 20.3% and 49.5% respectively, with nine-month subscription-based recurring revenue of $14.2 million or 85.5% of total revenue,” said Ezra Dabah, CEO of Kidpik Corp. “Our performance was driven mainly by the introduction of boys’ subscription boxes, the continued growth of our girls’ subscriptions and the newly introduced toddler box collection.” “We are happy to have completed an upsized IPO of $18 million and to be listed on Nasdaq after the quarter end,” continued Mr. Dabah. “Strengthening our balance sheet gives us the ability to make further investments in building our brand, growing our revenue, and driving shareholder value. We look forward to achieving our growth objectives by leveraging our merchandising expertise, the technology we have built, and the knowledge our team has gained over the last five years in the rapidly growing subscription industry.” Revenue by Subscription (Measured for 39 weeks ended October 2, 2021) Active Subscriptions (recurring boxes): increased 55.7% to $11.5 million New Subscriptions (first boxes): increased 14.9% to $2.7 million Total Subscriptions: increased 45.8% to $14.2 million or 85.5% of total revenue. Balance Sheet and Cash Flow Cash and cash equivalents at the end of the third quarter totaled $204,877 compared to $133,484 million at January 2, 2021. After quarter end, Kidpik completed an IPO, issuing 2,117,647 shares of common stock at a public offering price of $8.50 per share, resulting in aggregate net proceeds of approximately $16.1 million. Line of credit at the end of the third quarter totaled $3.2 million, compared to $2.5 million at the end of fiscal year 2020. In November 2021, the Company paid in full the outstanding line of credit amount. Net cash used in operating activities increased to $5,637,368 for the 39 weeks ended October 2, 2021, compared to $2,385,563 of cash used in operating activities during the 39 weeks ended September 26, 2020. Kidpik Corp. Condensed Interim Statements of Operations (Unaudited) For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenues, net $ 5,574,099 $ 4,634,529 $ 16,562,579 $ 11,076,010 Cost of goods sold 2,327,335 1,884,898 6,659,012 4,553,832 Gross profit 3,246,764 2,749,631 9,903,567 6,522,178 Operating expenses Shipping and handling 1,451,065 1,047,097 4,543,341 2,693,062 Payroll and related costs 1,023,241 753,222 2,953,993 2,045,415 General and administrative 2,169,283 1,790,401 6,318,183 4,301,533 Depreciation and amortization 5,226 13,770 21,355 58,063 Total operating expenses 4,648,815 3,604,490 13,836,872 9,098,073 Operating loss (1,402,051 ) (854,859 ) (3,933,305 ) (2,575,895 ) Other (income) expenses Interest expense 229,657 122,567 584,466 308,153 Other (income)/expense (442,352 ) - (429,045 ) 10,000 Total other (income) expenses (212,695 ) 122,567 155,421 318,153 Loss before provision for income taxes (1,189,356 ) (977,426 ) (4,088,726 ) (2,894,048 ) Provision for income taxes 825 1,332 1,122 Net loss $ (1,189,356 ) $ (978,251 ) $ (4,090,058 ) $ (2,895,170 ) Net loss per share attributable to common stockholders: Basic $ (0.22 ) $ (0.26 ) $ (0.77 ) $ (0.78 ) Diluted $ (0.22 ) $ (0.26 ) $ (0.77 ) $ (0.78 ) Weighted average common shares outstanding: Basic 5,500,187 3,735,457 5,300,308 3,735,457 Diluted 5,500,187 3,735,457 5,300,308 3,735,457 Kidpik Corp. Condensed Interim Balance Sheets October 2, 2021 (Unaudited) January 2, 2021 Assets Current assets Cash $ 204,877 $ 133,484 Restricted cash 149,268 551,812 Accounts receivable 373,071 320,446 Inventory 8,604,004 7,480,072 Prepaid expenses and other current assets 1,115,264 822,580 Total current assets 10,446,484 9,308,394 Leasehold improvements and equipment, net 7,133 27,874 Intangible assets, net 614 Total assets $ 10,453,617 $ 9,336,882 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 2,837,075 $ 2,960,687 Due to related party 1,219,038 599,811 Accrued expenses and other current liabilities 507,985 690,049 Advance payable 1,196,742 829,030 Loan payable, current portion 91,429 Short-term debt, related party 1,300,000 - Line of credit 3,200,000 2,032,118 Total current liabilities 10,260,840 7,203,124 Loan payable, less current portion 350,923 Total liabilities 10,260,840 7,554,047 Commitments and contingencies Stockholders’ equity Preferred stock (par value $0.001, 25,000,000 shares authorized, of which no shares are issued and outstanding as of October 2, 2021 and January 2, 2021) - - Common stock (par value $0.001, 75,000,000 shares authorized, of which 5,500,187 and 5,075,444 shares are issued and outstanding as of October 2, 2021 and January 2, 2021) 5,500 5,075 Additional paid-in capital 32,248,972 29,749,397 Accumulated stockholders’ deficit (32,061,695 ) (27,971,637 ) Total stockholders’ equity 192,777 1,782,835 Total liabilities and stockholders’ equity $ 10,453,617 $ 9,336,882 Kidpik Corp. Condensed Interim Statements of Cash Flows (Unaudited) For the 39 weeks ended October 2, 2021 September 26, 2020 Cash flows from operating activities Net loss $ (4,090,058 ) $ (2,895,170 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 21,355 58,062 Amortization of debt issuance costs 29,377 20,955 Forgiveness of loan payable (442,352) - Bad debt expense 614,239 348,236 Changes in operating assets and liabilities: Accounts receivable (666,864 ) (320,236 ) Inventory (1,123,932 ) (482,361 ) Prepaid expenses and other current assets (292,684 ) (116,957 ) Accounts payable (123,612 ) 660,541 Accounts payable, related parties 619,227 309,747 Accrued expenses and other current liabilities (182,064 ) 31,620 Net cash used in operating activities (5,637,368 ) (2,385,563 ) Cash flows from investing activities Purchases of leasehold improvements and equipment - (7,683 ) Net cash used in investing activities - (7,683 ) Cash flows from financing activities Proceeds from issuance of long-term debt from related party 2,000,000 1,000,000 Proceeds from issuance of common stock 500,000 - Net proceeds (repayments) from line of credit 1,138,505 (63,365 ) Net proceeds (repayments) from advance payable 367,712 (274,374 ) Proceeds from loan payable - 442,352 Proceeds from loan payable related party 1,300,000 810,000 Net cash provided by financing activities 5,306,217 1,914,613 Net decrease in cash and restricted cash (331,151 ) (478,633 ) Cash and restricted cash, beginning of period 685,296 631,320 Cash and restricted cash, end of period $ 354,145 $ 152,687 Reconciliation of cash and restricted cash: Cash $ 204,877 $ 99,297 Restricted cash 149,268 53,390 $ 354,145 $ 152,687 Supplemental disclosure of cash flow data: Interest paid $ 500,905 $ 291,056 Taxes paid $ 1,332 $ 297 Supplemental disclosure of noncash financing activities: Conversion of shareholder debt $ 2,000,000 $ - Revenue, net The Company’s revenue, net is disaggregated based on the following categories: For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Subscription boxes $ 4,745,933 4,016,696 $ 14,163,217 $ 9,712,382 Amazon sales 568,947 485,599 1,893,814 1,064,678 Online website sales 259,219 132,234 505,548 298,950 Total revenue $ 5,574,099 $ 4,634,529 $ 16,562,579 $ 11,076,010 Gross Margin Gross profit is equal to our net sales (revenues, net) less cost of goods sold. Gross profit as a percentage of our net sales is referred to as gross margin. Cost of sales consists of the purchase price of merchandise sold to customers and includes import duties and other taxes, freight in, defective merchandise returned from customers, receiving costs, inventory write-offs, and other miscellaneous shrinkage. For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Gross margin 58.2 % 59.3 % 59.8 % 58.9 % Shipped Items We define shipped items as the total number of items shipped in a given period to our customers through our active subscription, Amazon and online website sales. For the 13 weeks ended For the 39 weeks ended (In thousands) (In thousands) October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Shipped Items 559 470 1,680 1,139 Average Shipment Keep Rate Average shipment keep rate is calculated as the total number of items kept by our customers divided by total number of shipped items in a given period. For the 13 weeks ended For the 39 weeks ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Average Shipment Keep Rate 68.8 % 68.2 % 68.5 % 67.0 % Revenue by Channel 13 weeks ended October 2, 2021 13 weeks ended September 26, 2020 Change ($) Change (%) Revenue by channel Subscription boxes $ 4,745,933 4,016,696 729,237 18.2 % Amazon sales 568,947 485,599 83,348 17.2 % Online website sales 259,219 132,234 126,985 96.0 % Total revenue $ 5,574,099 $ 4,634,529 $ 939,570 20.3 % 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Revenue by channel Subscription boxes $ 14,163,217 $ 9,712,382 $ 4,450,835 45.8 % Amazon sales 1,893,814 1,064,678 829,136 77.9 % Online website sales 505,548 298,950 206,598 69.1 % Total revenue $ 16,562,579 $ 11,076,010 $ 5,486,569 49.5 % Subscription Boxes Revenue 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Subscription boxes revenue from Active subscriptions – recurring boxes $ 11,474,502 $ 7,371,851 $ 4,102,652 55.7 % New subscriptions - first box 2,688,715 2,340,531 348,183 14.9 % Total Subscription boxes revenue $ 14,163,217 $ 9,712,382 $ 4,450,835 45.8 % Revenue by Product Line 13 weeks ended October 2, 2021 13 weeks ended September 26, 2020 Change ($) Change (%) Revenue by product line Girls’ apparel $ 4,189,538 $ 3,941,463 $ 248,075 6.3 % Boys’ apparel 1,111,509 693,066 418,443 60.4 % Toddlers’ apparel 273,052 - 273,052 n/a % Total revenue $ 5,574,099 $ 4,634,529 $ 939,570 20.3 % 39 weeks ended October 2, 2021 39 weeks ended September 26, 2020 Change ($) Change (%) Revenue by product line Girls’ apparel $ 12,647,081 $ 10,374,374 $ 2,272,707 21.9 % Boys’ apparel 3,341,419 701,636 2,639,783 376.2 % Toddlers’ apparel 574,079 - 574,079 n/a % Total revenue $ 16,562,579 $ 11,076,010 $ 5,486,569 49.5 % Earnings Call Information: Today at 4:30pm ET a live webcast will be accessible at the following link on the investor relations section of the KIDPIK website at https://investor.kidpik.com. Analysts and investors may also call in by dialing (877)-545-0320 or (973)-528-0002 for international callers, conference ID 315694. A replay of the conference call will be available approximately two hours after the conclusion of the call on the investor relations section of the KIDPIK website at https://investor.kidpik.com or by dialing (877)-481-4010 or (919)-882-2331 for international callers, conference ID 43975. The replay will be available until December 28, 2021. About Kidpik Corp. Founded in 2016, KIDPIK (NASDAQ:PIK) is an online clothing subscription box for kids, offering mix-&-match, expertly styled outfits that are curated based on each member’s style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids' unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com. Forward-Looking Statements This press release contains statements that constitute “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to the Company on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the “Risk Factors” section of the Company's Registration Statement and preliminary prospectus for the offering filed with the SEC. Thus, actual results could be materially different. The Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20211221005708/en/