a.k.a. Brands Q2 sales miss estimates, dragged by Australia, New Zealand

aka Brands Holding

05/08/2026 21:46

Overview
US fashion brands portfolio's Q2 net sales declined, missing analyst expectations
Q2 adjusted EBITDA grew and slightly beat analyst expectations
Gross margin rose, driven by lower tariffs and improved full-price selling in streetwear brands

Outlook
Company sees FY 2026 net sales of $625 mln to $635 mln
Company expects FY 2026 adjusted EBITDA of $30 mln to $32 mln
Company projects Q3 2026 net sales of $160 mln to $164 mln

Result Drivers
REGIONAL SALES MIX - U.S. and Rest of World sales grew, while Australia & New Zealand sales declined due to a challenging macro environment and prior-year clearance activity
GROSS MARGIN IMPROVEMENT - Gross margin rose due to lower tariff rates and improved full-price selling in streetwear brands
RETAIL EXPANSION COSTS - Higher selling and marketing expenses were driven by increased store selling costs and brand initiatives

Company press release: ID:nBw4pGDVka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$160.07 mln
$162.62 mln (4 Analysts)
Q2 Net Loss
 
$161,000
 
Q2 Adjusted EBITDA
Slight Beat*
$8.70 mln
$8.69 mln (4 Analysts)
Q2 Gross Margin
 
61.10%
 
Q2 Gross Profit
 
$97.84 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for AKA Brands Holding Corp is $19.00, about 71.9% above its August 4 closing price of $11.05

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Aug 5 - Next raises profit outlook again as warm weather boosts summer sales

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)