Kidpik’s net loss widens amid lower subscriptions

(Source: Kidpik/Facebook)

Kidpik’s net loss widened last year as revenue declined due to lower active and new subscriptions.

The subscription-based clothing retailer booked a net loss of $9.9 million as revenue fell 13.6 per cent to $14.2 million and gross margin slid to 42.2 per cent.

Total subscriptions plunged 18.9 per cent to $10.4 million as active subscriptions decreased 20 per cent to $8.8 million, while new subscriptions dropped 12.5 per cent to $1.6 million.

Earlier, the company said it will acquire Nina Footwear in a reverse subsidiary merger anticipated to close in the third quarter.

“We are extremely excited about the prospects of the merger which is expected to increase Kidpik’s revenue, cashflow and prospects, while also strengthening Kidpik’s balance sheet and significantly increasing stockholder value,” Kidpik CEO Ezra Dabah said.

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