AKA Brands Q1 adjusted EBITDA beats estimates, raises FY outlook

aka Brands Holding

12/05/2026 21:22

Overview

US fashion brands portfolio's Q1 net sales rose 3%, slightly beating analyst expectations

Adjusted EBITDA for Q1 beat consensus, driven by improved inventory discipline and full-price sell-through

Company recognized $25.8 mln receivable for probable recovery of previously paid IEEPA tariffs

Outlook

AKA Brands sees FY 2026 net sales of $625 mln to $635 mln

Company raises FY 2026 adjusted EBITDA outlook to $30 mln to $32 mln from $27 mln to $29 mln

AKA Brands expects Q2 2026 net sales between $160 mln and $164 mln

Result Drivers

ORDER GROWTH - Net sales increase was driven by a 4.2% rise in the number of orders, partly offset by a 1.3% decrease in average order value

GROSS MARGIN EXPANSION - Gross margin rose due to improved inventory position, more full-price selling, and IEEPA tariff adjustment, partly offset by a $12 mln streetwear inventory write-off and other tariff-related charges

BRAND INITIATIVES - Retail expansion at Princess Polly, wholesale growth at Petal & Pup, and margin improvement at Culture Kings contributed to quarterly results

Company press release: ID:nBwbZYZNla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Beat*
$132.46 mln
$131.17 mln (5 Analysts)
Q1 EPS
-$0.66
Q1 Net Income
-$7.13 mln
Q1 Adjusted EBITDA
Beat
$5.10 mln
$1.72 mln (5 Analysts)
Q1 Gross Margin
63.10%
Q1 Gross Profit
$83.63 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 "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 $19.00, about 71.8% above its May 11 closing price of $11.06

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.)