A.K.A. Brands Holding Corp. ( (AKA) ) has released its Q3 earnings. Here is a breakdown of the information A.K.A. Brands Holding Corp. presented to its investors.
A.K.A. Brands Holding Corp. operates as a brand accelerator in the fashion industry, focusing on next-generation fashion brands and targeting Gen Z and millennial audiences with innovative retail strategies and exclusive merchandise.
The company reported a 6.4% increase in net sales for the third quarter of 2024 compared to the same period in 2023, with a notable 19.5% growth in U.S. sales. Key highlights include the expansion of Princess Polly into physical retail with a new store opening in NYC planned for 2025 and Petal & Pup’s successful collaboration with Nordstrom.
Financially, the company reduced its net loss significantly from $70.4 million in Q3 2023 to $5.4 million in Q3 2024 and achieved an adjusted EBITDA increase of 75% to $8.2 million. The gross margin improved to 58%, attributed to better inventory management and more full-price sales. However, operational expenses rose due to store openings and legal expenses.
Looking forward, A.K.A. Brands anticipates continued growth with projected net sales between $567 million and $572 million for the full fiscal year 2024, alongside strategic initiatives such as further store openings and an emphasis on omnichannel growth. The company remains optimistic about its ability to deliver sustainable long-term shareholder value.
