AKA Brands' Q3 sales miss estimates

aka Brands Holding

05/11/2025 21:19

Overview

AKA Brands Q3 net sales decreased 1.9%, missing analyst expectations

Adjusted EBITDA for Q3 missed analyst estimates

Company advanced strategic initiatives, including debt refinancing and retail expansion

Outlook

AKA Brands lowers full-year 2025 net sales guidance to $598 mln - $602 mln

Company revises full-year 2025 adjusted EBITDA forecast to $23.0 mln - $23.5 mln

Guidance considers impact of tariffs enacted during 2025

Result Drivers

SUPPLY CHAIN DISRUPTIONS - Temporary disruptions affected in-stock levels and fashion newness, limiting ability to meet customer demand

RETAIL EXPANSION - Princess Polly's retail expansion contributed to higher gross margins

ORDER GROWTH - Increase in number of orders driven by growth in Australia and New Zealand

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$147.08 mln
$154.86 mln (5 Analysts)
Q3 Net Income
-$4.96 mln
Q3 Adjusted EBITDA
Miss
$7 mln
$7.38 mln (5 Analysts)
Q3 Gross Margin
59.10%
Q3 Gross Profit
$86.98 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $21.50, about 43.7% above its November 4 closing price of $12.11

Press Release: ID:nBw97Zp79a

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