a.k.a. Brands reports Q2 EPS (34c), consensus (52c)

Reports Q2 revenue $160.5M, consensus $155.8M. “We’re pleased to report a strong second quarter, with net sales growth of 8%, reaching $161 million and exceeding our expectations,” said Ciaran Long, Chief Executive Officer. “This marks our fifth consecutive quarter of growth, demonstrating the strength of our brands and the successful execution of our strategic initiatives. Momentum in the U.S. remained strong, with net sales up 14%, while the Australia/New Zealand region continued to show steady signs of stabilization. Benefiting from the strong top-line growth, expanding brand awareness and continued operating discipline, we delivered $7.5 million of adjusted EBITDA for the second quarter, in line with our expectations. Our solid second quarter results reflect the hard work and commitment of our team, and I want to thank them for their continued dedication. Our direct-to-consumer channels remain strong, and our omnichannel expansion continues to exceed expectations. Princess Polly opened three new stores in the second quarter and is on track to reach 13 locations by year-end, with plans to open 8 to 10 additional stores in 2026. We’re also deepening our wholesale partnerships to drive brand awareness and new customer acquisition. We’re especially excited about the successful chain wide debut of Princess Polly and Petal & Pup at Nordstrom, reinforcing the global potential of our brands. Culture Kings continues to advance its test and repeat merchandising strategy, with in-house brands growing double digits in the second quarter. Our sourcing diversification initiatives are on schedule, and we have already received products from our new vendors and are pleased with the timelines, quality and cost. I’m confident that we have established a world-class, flexible supply chain that provides us the ability to adapt as our business grows and future trade dynamics evolve. As we look ahead, I’m confident that we are well positioned to continue growing awareness across our brand portfolio, capture additional market share and drive profitable growth over the near and long term.”