A.k.a. Brands narrows net loss in second quarter

For the second quarter ended June 30, 2026, net sales for the San Francisco-based fashion group A.k.a. Brands reached 160.10 million dollars, representing a 0.3 percent decline compared to 160.50 million dollars in the second quarter of 2025. On a constant currency basis, net sales decreased 5.3 percent.

The company narrowed its net loss to 0.20 million dollars, or 0.01 dollars per share, compared to a net loss of 3.60 million dollars, or 0.34 dollars per share, in the prior-year period. Adjusted EBITDA, grew 16% year-over-year, hereafter referred to as YoY, to 8.70 million dollars compared to 7.50 million dollars in the second quarter of 2025.

a.k.a. Brands chief executive officer Ciaran Long stated: “Our second quarter results further validate that a.k.a. Brands has been fundamentally repositioned to deliver profitable, durable growth”. Long highlighted that performance was driven by expanded distribution across physical stores, wholesale channels, and digital marketplaces, alongside operational discipline across the business.

Margin expansion and regional performance

Gross margin for the quarter expanded by 360 basis points to 61.1 percent compared to 57.5 percent in the second quarter of 2025. The gross margin expansion was primarily driven by lower tariff rates and improved full-price sell-throughs across its streetwear banners.

Geographically, net sales in the US grew 2 percent YoY, while sales across international markets, excluding Australia and New Zealand, expanded by more than 50 percent. Conversely, the Australia and New Zealand region faced revenue headwinds, contracting due to a challenging macroeconomic backdrop and tough prior-year comparisons from inventory clearance activities.

Brand developments and updated guidance

Across its brand portfolio, women's fashion label Princess Polly remains on track to open four new US stores by the end of the year, with plans for up to ten additional locations in 2027 and a long-term target of at least 100 US stores.

A new UK distribution centre supported e-commerce operations, while lifestyle brand Petal & Pup expanded its wholesale partner network. Streetwear retailer Culture Kings announced plans to open its first US store since 2022 as it continues its transition toward a full-price, test-and-repeat model.

For the third quarter ending September 30, 2026, a.k.a. Brands projects net sales between 160 million dollars and 164 million dollars, with adjusted EBITDA anticipated between 8 million dollars and 8.50 million dollars.

For the full year ending December 31, 2026, the group expects total net sales to range between 625 million dollars and 635 million dollars. Full year adjusted EBITDA is forecasted between 30 million dollars and 32 million dollars, with capital expenditures planned between 18 million dollars and 20 million dollars.