Kidpik Corp. (PIK) Q1 2023 Earnings Call Transcript

Kidpik Corp. (PIK) Q1 2023 Earnings Call Transcript May 16, 2023 4:30 PM ET

Company Participants

Ezra Dabah - Chairman, President and Chief Executive Officer
Adir Katzav - Executive Vice President and Chief Financial Officer

Conference Call Participants

Edward Reilly - EF Hutton

Operator

Greetings. Welcome to the Kidpik First Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

I would now turn the conference over to your host, Ezra Dabah. You may begin.

Ezra Dabah

Thank you, operator. We are pleased to welcome everyone to today's call, where we will review Q1 2023 results and provide an update on the business. We will begin with a review of our financial and business highlights, followed by a financial review, which Adir, our CFO, will take us through. Then we will open the call to Q&A.

I'd like to start by sharing that we have continued executing our plan to reduce inventory and generate cash flow. We have substantially reduced purchases of new inventory and are focused on increasing sales, utilizing our existing inventory, which we believe will support our cash flow needs in the short-term. As a result, during the first quarter, our inventory was reduced by $1.5 million from $12.6 million to $11.1 million, while maintaining a consistent gross margin of about 60%. In addition, we are taking action to reduce our go-forward operating costs and improve efficiency.

We continually upgrade our proprietary technology platform with the goal of enhancing our customer experience, retention and to grow our sales. As we look ahead, our focus is on several key areas. We are focused on improving our conversion rate across three key channels, enhancing our brand awareness, implementing efficiency initiatives, and increasing the average dollar sale per subscription box.