Retailer AKA Brands Q2 sales rise 7.8%, beat expectations

aka Brands Holding

06/08/2025 21:58

Overview

AKA Brands Q2 net sales rise 7.8%, beating analyst expectations, per LSEG data

Adjusted EBITDA for Q2 beats consensus, indicating strong operational performance

Company reports net loss of $3.6 mln, wider than last year's Q2 loss

Outlook

AKA Brands expects FY 2025 net sales of $608 mln to $612 mln

Company projects Q3 2025 net sales of $154 mln to $158 mln

AKA Brands anticipates FY 2025 adjusted EBITDA of $24.5 mln to $27.5 mln

Company forecasts Q3 2025 adjusted EBITDA of $7.3 mln to $7.7 mln

Result Drivers

U.S. SALES GROWTH - Net sales in the U.S. increased 13.7%, driven by higher order volumes

DIRECT-TO-CONSUMER CHANNELS - Strength in direct-to-consumer channels contributed to sales growth

WHOLESALE PARTNERSHIPS - Successful debut of Princess Polly and Petal & Pup at Nordstrom boosted brand awareness

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$160.52 mln
$155.80 mln (5 Analysts)
Q2 Net Income
-$3.62 mln
Q2 Adjusted EBITDA
Beat
$7.50 mln
$7.48 mln (5 Analysts)
Q2 Gross Margin
57.5%
Q2 Gross Profit
$92.34 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 $20.00, about 43.5% above its August 5 closing price of $11.30

Press Release: ID:nBw2w2VsBa

(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.)