a.k.a. Brands Holding Corp. (NYSE: AKA) Q2 2025 Earnings | 08/07/2025

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a.k.a. Brands Holding Corp. delivered robust second-quarter 2025 results, with net sales rising 7.8% year-over-year to $160.5 million, driven by a strong 13.7% increase in U.S. sales. This marks the company’s fifth consecutive quarter of growth, surpassing analyst expectations. The growth was fueled by a 6.8% increase in order volume and expansion in direct-to-consumer channels, complemented by successful omnichannel and wholesale initiatives including the chain-wide debut of Princess Polly and Petal & Pup at Nordstrom. Gross margin was stable at 57.5%, slightly down from 57.7% the prior year due primarily to higher tariffs, partially offset by improved inventory management and increased full-price selling. Operating expenses rose, led by selling costs associated with expanding the retail footprint, alongside marketing and general administrative expenses. Adjusted EBITDA stood at $7.5 million, in line with expectations but down from $8.0 million a year ago. The company reported a net loss of $3.6 million, or $0.34 per share, wider than the prior year’s $2.3 million loss, reflecting ongoing investments in store expansion and omnichannel growth. Inventory levels improved, declining 13.4% from the prior year, contributing to positive operating cash flow of $10.0 million for the first half of 2025, reversing the prior year’s cash outflow. Operational highlights include opening three new Princess Polly stores this quarter, with plans to reach 13 stores by year-end 2025 and further store openings planned in 2026. Strategic supply chain diversification efforts progressed on schedule, aiming to enhance flexibility amidst evolving trade dynamics. Management raised full-year 2025 net sales guidance to $608–$612 million, up from prior estimates, and adjusted EBITDA guidance to $24.5–$27.5 million. For Q3 2025, management expects net sales between $154 million and $158 million and adjusted EBITDA of $7.3–$7.7 million. Risks mentioned include tariff pressures continuing to impact gross margins through Q3 2025, with expected normalization in Q4. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. #aKaBrands #AKA #Q22025 #Earnings #FinancialResults #NetSales #RevenueGrowth #AdjustedEBITDA #NetLoss #U.S.SalesGrowth #RetailExpansion #PrincessPolly #PetalAndPup #WholesalePartnerships #Nordstrom #Omnichannel #DirectToConsumer #RetailStores #SupplyChainDiversification #Tariffs #GrossMargin #InventoryManagement #OperatingCashFlow #MarketingExpenses #StoreOpenings #FashionIndustry #ApparelRetail #ConsumerGoods #EcommerceGrowth #BrandAwareness #InvestorUpdates #InsideTicker