A.k.a. Brands posts Q1 sales growth, narrows net loss

US-based fashion portfolio A.k.a. Brands Holding Corp. has announced its financial results for the first quarter ended March 31, 2026, reporting a 3 percent increase in net sales to 132.50 million dollars. On a constant currency basis, the increase represented a 1.20 percent growth.

The group narrowed its net loss to 7.10 million dollars, or 0.66 dollars per share, compared to a net loss of 8.40 million dollars, or 0.78 dollars per share, in the first quarter of 2025. Adjusted EBITDA reached 5.10 million dollars, an increase from 2.70 million dollars in the prior year period.

Strategic repositioning drives profitability

A.k.a. Brands chief executive officer, Ciaran Long, stated that the results mark a meaningful inflection point for the company. Long noted that over the past three years, the business has been fundamentally repositioned to improve durability and profitability.

“Our first quarter results demonstrate that this strategic work is translating into our financials, and we believe 2026 will be a meaningful proof point in our trajectory,” Long said. The CEO highlighted that, excluding one-time adjustments, gross margin expanded materially year-over-year (YoY) due to improved inventory discipline and stronger full-price sell-through.

Performance across brand portfolio

The group reported progress across its individual labels, particularly Australian-born brand Princess Polly, which is expanding its brick and mortar presence. The brand expects to have 17 stores in the US and two in Australia open by the end of the year. Additionally, a pop-up store is scheduled to open at The Grove in Los Angeles later in May 2026.

US-based womenswear label Petal & Pup saw increased wholesale momentum, while Culture Kings improved its gross margin and full-price mix. This improvement followed sustained investment in the in-house brand portfolio and a transition toward a test-and-repeat model.

Updated full year outlook

A.k.a. Brands has updated its guidance for the full year ending December 31, 2026. While the net sales forecast remains between 625 million dollars and 635 million dollars, the adjusted EBITDA outlook has been raised to a range of 30 million dollars to 32 million dollars.

For the second quarter ending June 30, 2026, the group anticipates net sales between 160 million dollars and 164 million dollars.