JOINED BY JOE RAMSEY
WHO IS THE CEO OF A K BRANDS
JOINING US NOW JOE GREAT TO
HAVE YOU HERE WITH US
THIS MORNING AND THANKS FOR
TAKING THE TIME A CAGR AND SAW
NET SALES JUMPED 161 MILLION
DOLLARS
THAT'S COMPARED. THE 63 MILLION
DOLLARS SAW DURING THE SAME
PERIOD LAST YEAR WAS THE
CATALYST FOR THIS PART.
>> AND THANKS SO MUCH FOR FOR
HAVING ME SAY TO
BE HERE. WE SAW TREMENDOUS
GROWTH AND THE 3RD QUARTER THIS
YEAR AND WE'VE HAD JUST
TREMENDOUS GROWTH CONTINUING
FOR OUR GREAT GROUP OF 5
SUPPRESS ACROSS ALL BRANDS AND
ALL REGIONS BUT IT'S REALLY
BEING FUELED BY US GROSS AND WE
WERE 84% IN
THE U.S. WHERE WE JUST SEE OUR
BRANDS CONTINUE TO GAIN NEW
CUSTOMERS AND GROW THEIR
AWARENESS SO REALLY EXCITED
ABOUT THE GROWTH SUSTAINED SOME
OF
THIS GROWTH.
>> FOR AN EXTENDED PERIOD OF
TIME AND AS INVESTORS CONTINUE
TO EVALUATE BUSINESS WHERE ARE
THOSE OPPORTUNITIES TO REALLY
ACCELERATE WHAT YOU'VE
SEEMINGLY UNLOCKED
YEAR-OVER-YEAR.
>> I'M WELL
WE HAVE AND ALSO GROUP OF 5
BRANDS NOTABLY 3 OF OUR BRANDS
FOR REALLY POPULAR
THAT WERE AT SOME SCALE
IN WE ACTUALLY BROUGHT THOSE
BRANDS INTO THE U.S. INTRODUCED
HIM INTO THE U.S. MARKET AND
NOW WE'RE SCALING THEM IN A
MARKET, 22 TIMES PRINCE'S
POLLY'S A GREAT EXAMPLE OF THAT
THIS WAS A REALLY POPULAR TEEN
BRAND IN
IN AUSTRALIA. 3 YEARS AGO WHEN
WE INVESTED IN THEM, WE BROUGHT
THEM INTO THE U.S. MARKET AND
HAS NOW 5 ACTS THERE ARE THERE
ARE THERE'S. I REALLY
BUILDING OUT TEAM HERE AND
GROWING ARE AWARE
YES IN THE U.S. MARKET WE'RE
NOW DOING THAT AGAIN WITH
ANOTHER ONE OF OUR BRANDS PANEL
AND POP AND WHAT WE'RE REALLY
EXCITED ABOUT IS DOING THAT
WITH CULTURE KINGS CULTURE
KINGS ISN'T AWESOME POPULAR MEN
STREET WEAR BRAND THAT WE'RE
NOW INTRODUCING TO THE U.S.
MARKET AND IT HAS JUST
TREMENDOUS GROWTH AND OUTSIDE
SO WE SEE A LOT
A LOT OF ROCK HEADROOM IN
RUNWAY FOR GROWTH IN THE U.S.
FOR OUR GREAT BRANDS, YOU KNOW
FOR.
>> THE BROADER INDUSTRY IS THAT
WE'VE BEEN TRACKING THAT HAVE
BEEN SEEING THE HEAD WHEN THE
IMPASSE.
FROM THE HEADWIND OF THE GLOBAL
SUPPLY CHAIN DISRUPTIONS HOW
HAVE YOU BEEN ABLE TO NAVIGATE.
>> YOU KNOW WE'VE ACTUALLY GOT
A LITTLE BIT LESS IMPACTED BEEN
MANY ARE OTHERS WITH THE SUPPLY
CHAIN DYNAMIC BECAUSE WE
ACTUALLY GET OUR PRODUCTS TO
OUR CUSTOMERS RELIEF
IN A 30 TO 45 DAY TIME CYCLE
AND THE WAY WE DO THAT IS
THROUGH AIR FREIGHT. SO WE'RE
LESS
RELIANT ON AND SEA FREIGHT
WHICH IS WHERE MANY OF THE
SUPPLY CHAIN DELAY AN EXTREME
COST PRESSURES THEN I DON'T
WANT TO SAY WE HAVEN'T HAD ANY
IMPACT WE HAVE HAD A COST
PRESSURE FROM
AIR FREIGHT BUT NOT SEEING THE
SUBSTANTIAL AND
DIFFICULTY ACCESSING INVENTORY
LIKE MANY OTHERS WHO WHO RELY
ON C.
>> ONE ALSO TALK ABOUT THAT FOR
OF HIGH
BOTH BRANDS AND HOW THAT'S
INFLUENCING OTHER RETAIL
INDUSTRY DOES BUSINESS. I MEAN
THIS IT'S A CRITICAL
TIME FOR DIRECT-TO-CONSUMER AND
SO CLEARLY YOU'VE BEEN ABLE TO
LEAN INTO THAT SUCCESSFULLY YOU
KNOW HOW DO YOU CONTINUE TO
REALLY ROLL OFF OF THOSE BRANDS
THAT
YOU ALREADY BROUGHT UNDER THE
BROADER UMBRELLA AND ARE THERE
OTHER BRANDS THAT YOUR TARGET
AND AND THINKING ABOUT MAKING
POTENTIAL ACQUISITIONS OVER AT
THIS POINT.
>> YEAH WE HAVE A
GREAT GROUP ALL DIGITALLY
NATIVE DIRECT-TO-CONSUMER
AWESOME BRANDS THAT CUSTOMERS
AS I MENTIONED PRINCESS POLLY
AND CULTURE KINGS WE ALSO
PADDLE AND POP
READ DOLLS AND OUR NEWEST
ACQUISITION, OUR NEWEST WANT TO
JOIN THE MINIMAL.
HE'S GREAT GROUP OF BRANDS,
THEY'RE REALLY MASTERS THAT
CONTENT THEY'RE THERE FOR ON
SOCIAL MEDIA AND FUELED BY
SOCIAL MEDIA AND PUTTING OUT
FANTASTIC INSPIRATIONAL CONTENT
THAT
THEIR CUSTOMERS I WAS BUILDING
LOYAL FOLLOWINGS OUT THERE ON
SOCIAL MEDIA
AND REALLY THEY'RE GREAT AT
TRAINING IN FASHION MERCHANDISE
THAT THEIR CUSTOMERS REALLY
LIKE. AND DOING
IN THERE THE NEXT
GEN DATA-DRIVEN WAY IN WHICH
WE'RE ABLE TO GET MUCH AND ICE
TO OUR CUSTOMERS WITHIN 30 TO
45 DAYS.
AND WE'RE ALSO USING A NETWORK
OF MICRO INFLUENCERS TO TO
SCALE OUR BRANDS ON SOCIAL
MEDIA. AND THIS IS REALLY YOU
KNOW OPERATING IN A MUCH MORE
NEXT GEN RELEVANT ENGAGING WAY
THAT A
LOT OF I'M MORE MATURE
ESTABLISHED FASHION BRAND SO
REALLY ON THE TIP OF THE SPEAR
AND WE'RE JUST
GETTING STAR AND WE'RE LOOKING
TO ADD TO OUR GREAT GROUP OF
BRANDS WILL LOOK TO ADD ONE TO
2 ADDITIONAL EVERY YEAR AS
WE GO. OUR FOCUS PRIORITY IS TO
SCALE THE GROUP HAVE BUT WE
WILL CONTINUE TO ADD AS
WE GO.
>> YOU KNOW WE OFTEN OF THIS
CONVERSATION AROUND MAKING
SURE THAT OFFENSE TO BE OPEN TO
CITY AND AND KIND OF GENUINE
CONTENT AND COLLABORATION CZAR
ARE
STILL PROMINENT ON SOCIAL MEDIA
ON A BROADER SCALE, YOU KNOW
HOW IS SOCIAL MEDIA IMPACTING
MILLENNIAL AND GEN Z SHOPPING
PATTERNS AND HOW DOES A K A
BRANDS PLAN TO CONTINUE TO
LEVERAGE THAT.
>> WELL SOCIAL MEDIA
IS EVERYTHING THESE DAYS TO THE
YOUNGER AUDIENCE TO TO THE GEN
Z AND MILLENNIAL I MEAN THEY
ARE SPENDING. NEARLY 5 HOURS A
DAY ON
SOCIAL MEDIA, I'M AND SO OUR
BRANDS ARE REALLY FOCUSED ON
BUILDING RELATIONSHIPS OUT
THERE WHERE THE CUSTOMERS YOU
KNOW WE WANT TO BE WHEREVER
WHEREVER THE YOUNG GUY CALLS SO
WE ARE CONSTANTLY
INVOLVING OUR SOCIAL MEDIA
WE'VE MOVED WITH
PHAM FROM FACEBOOK TO INSTAGRAM
TO YOU TO TO TIKTOK WE GO
WHEREVER THE
CUSTOMER GOES. AND AS IT
RELATES TO AUTHENTICITY OF
CONTENT THAT IS ALSO CRITICALLY
IMPORTANT TO THIS NEXT GEN
CONSUMER. THEY WANT CONTENT
THAT
REALLY FEELS RELEVANT TO THEM
AND AUTHENTIC WHICH IS WHY
WE ALL LIKE WE DON'T WE TOUCH
ANY OF OUR IMAGERY OR VIDEOS WE
SHOW CUSTOMERS AS THEY ARE AND
REALLY FOCUS ON KIND OF BODY
BODY POSITIVITY AND AND AND
SKIN POSITIVITY WILL WE'LL SHOW
OUR CUSTOMERS, I'M TOTALLY
HENRI
TAJ AND THAT'S VERY IMPORTANT
TO GET THAT OFTEN TO CITIES
AS WELL USING A NETWORK OF
SMALLER MICRO INFLUENCERS
VERSUS THE LARGER SOMEWHERE
PRETTY AND MEGA INFLUENCERS YOU
KNOW
YOUNG CUSTOMERS. THEY THE
CELEBRITY ISN'T NECESSARILY
PERCEIVED AS AUTHENTIC TO THEM
AS SOME OF THE SMALLER MICRO
INFLUENCERS THAT ARE MORE
REALLY DOUBLE TO THEM CERTAINLY
YOU KNOW I WONDER AS WE'VE
KIND OF.
>> TRACKED SOME OF THE SOCIAL
MEDIA COMPANIES AND THEIR
EARNINGS OVER THIS BROAD
EARNING SEASON IS WELL AND THE
HEADWINDS THAT THEY'VE CITED IN
TERMS OF THE CHANGES FROM APPLE
AND IOS AND THE PRIVACY CHANGES
THERE, YOU KNOW DOES THAT
TRICKLE DOWN AND IMPACT A
BUSINESS LIKE YOURS THAT IS
HIGHLY
RELIANT ON THE COMMUNITY THAT
IS WITHIN SOCIAL MEDIA AND THAT
THE CONNECTIVITY THAT YOU'RE
ABLE TO DRIVE THROUGH THAT
CONTENT AND THROUGH THOSE
INFLUENCERS WHO ARE ALSO ABLE
TO LEVERAGE THE FOLLOWING IS
THAT
AND A LOT OF THAT KIND OF BEING
DRIVEN BY THE HOUR THEM AND
THAT OUR THEM BEING DRIVEN BY
THE HARDEST THING AND INDEXING
OF DATA ON EACH INDIVIDUAL USER
IF THERE'S LESS OF THAT DATA TO
INDEX. YOU KNOW HOW THAT HOW
DOES THAT ESSENTIALLY IMPACT
THE EFFECTIVENESS OF SOME OF
THE INFLUENCERS WHEN THEY ARE
CREATING CONTENT.
>> YEAH, YOU KNOW WE'VE
BEEN LESS IMPACTED BY SOME OF
THE IOS CHANGES BECAUSE WE ARE
MICRO INFLUENCERS TO REALLY
SCALE
OUR BRANDS THE IOS CHANGES HAS
HAVE HAD A LARGER IMPACT ON
THEM OR PAID PERFORMANCE SIDE.
THEM ARE YOU PERFORMANCE AD
SPEND SIDE OF THE HOUSE.
WE DO WE DO GROW AND WITH A MIX
OF BOTH BUT
BECAUSE WE'RE PRIMARILY SOCIAL
MEDIA AND MICRO
INFLUENCER LEAD. WE HAVE BEEN
LESS IMPACTED I DON'T WANT TO
SAY WE HAVEN'T HAD ANY IMPACT
WE DID SEE A MODEST IMPACT
ON SOME OF OUR ON SOME OF OUR
MARKETING PLATFORMS AND WE WERE
ABLE TO ADJUST AND REALLOCATE
OUR MARKETING SPEND
TO OPTIMIZE FOR OUR RETURN ON
AD SPEND AND BUT
ALL TOO MATT LE YOU KNOW WE'RE
REALLY ABOUT BUILDING DIRECT
RELATIONSHIPS WITH OUR
CUSTOMERS OUT BY FINDING THEM