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.)