aka Brands Holding Corp (AKA)
NYSE:AKA
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aka Brands Holding Corp
(NYSE:AKA)
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Rating:45Neutral
Price Target:
$8.50
▼(-21.00% Downside)
Action:Reiterated
Date:06/05/26
The score is held down primarily by weak financial performance (ongoing losses, slightly negative free cash flow, and elevated leverage) and bearish technicals (below key moving averages with negative MACD). Offsetting these, the latest earnings call guidance and commentary point to improving profitability and margins, supporting a modestly better outlook than the fundamentals and chart alone suggest.
Positive Factors
High gross margin
A sustained ~59% underlying gross margin provides structural protection for profitability as revenue scales. Margin expansion driven by inventory discipline, full-price sell-through and a test-and-repeat model supports long-term unit economics and cushions against cost pressure.
Negative Factors
High leverage
Elevated debt-to-equity (~2.28x) constrains financial flexibility and raises interest and covenant risks if cash flow slips. High leverage limits ability to invest opportunistically and increases default risk in adverse retail or macro scenarios over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A sustained ~59% underlying gross margin provides structural protection for profitability as revenue scales. Margin expansion driven by inventory discipline, full-price sell-through and a test-and-repeat model supports long-term unit economics and cushions against cost pressure.
Read all positive factors
aka Brands Holding Corp (AKA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.38M
Dividend YieldN/A
Average Volume (3M)2.48K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth2.98%
EPS Growth-17.61%
CountryUS
Employees1,350
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-2.81
Shares Outstanding10,822,092
10 Day Avg. Volume911
30 Day Avg. Volume2,482
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)1.17
Price to Sales (P/S)0.19
P/FCF Ratio-181.30
Enterprise Value/Market Cap2.96
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit0.86
Enterprise Value/Ebitda-71.88
Forecast
1Y Price Target
$19.00Price Target Upside76.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.72
Revenue Forecast (FY)$630.73M
aka Brands Holding Corp Business Overview & Revenue Model
Company Description
a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. It offers apparel, footwear, and accessories through its online stores under the Princess Polly, Culture Kings, Petal &...
How the Company Makes Money
aka Brands primarily makes money by selling branded fashion products directly to consumers through its owned and operated e-commerce websites. The core revenue stream is net product sales (gross merchandise sales less returns, discounts, and allow...
aka Brands Holding Corp Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented multiple meaningful operational and financial improvements — revenue growth, a large underlying gross margin expansion (59% normalized), substantial inventory reduction, order and active customer growth, omnichannel and wholesale traction, and improved adjusted EBITDA and margin trends. These positives were tempered by one-time strategic charges (a $12M inventory write-off), historic tariff payments and partial refunds, a modest cash balance, and rising operating expense ratios as the company invests in retail and capabilities. Management reiterated full-year guidance and provided a Q2 margin target (~60%), signaling confidence that structural changes are driving improved earnings power. Overall, the highlights materially outweigh the lowlights, though some execution and macro risks remain.Positive Updates
Revenue Growth
Net sales of $132.5M in Q1 FY26, up 3% year-over-year and slightly ahead of company outlook.
Negative Updates
One-Time Legacy Inventory Write-Off
Company took a $12M strategic write-off of legacy streetwear inventory as part of the transition to the test-and-repeat model; this was a one-time 900-basis-point headwind to gross margin in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $132.5M in Q1 FY26, up 3% year-over-year and slightly ahead of company outlook.
Read all positive updates
Company Guidance
Management guided fiscal 2026 net sales of $625–$635 million and adjusted EBITDA of $30–$32 million, with Q2 net sales of $160–$164 million (low‑single‑digit growth) and Q2 adjusted EBITDA of $8.5–$9.0 million; they expect Q2 adjusted gross margin around 60% (anchoring the business to an underlying ~59% run‑rate) and noted back‑half assumptions reflect tariff rates at pre‑Supreme Court levels and some inbound freight headwinds. For modeling purposes they provided FY26 assumptions of stock‑based compensation of $6.5–$7.0 million, depreciation & amortization of $20–$21 million, interest & other expense of $16–$18 million, an effective tax rate of -10%, capital expenditures of $18–$20 million, and a weighted average diluted share count of roughly 11 million.aka Brands Holding Corp Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
34
Negative
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 604.01M | 600.21M | 574.70M | 546.26M | 611.74M | 562.19M |
| Gross Profit | 354.03M | 326.30M | 327.50M | 300.28M | 337.25M | 307.66M |
| EBITDA | -4.22M | 10.99M | 6.23M | -66.66M | -153.22M | 20.96M |
| Net Income | -30.22M | -31.43M | -25.99M | -98.89M | -176.70M | -5.97M |
Balance Sheet | ||||||
| Total Assets | 397.69M | 397.38M | 385.20M | 361.72M | 509.64M | 687.85M |
| Cash, Cash Equivalents and Short-Term Investments | 12.86M | 20.27M | 24.19M | 21.86M | 46.32M | 38.83M |
| Total Debt | 215.60M | 211.79M | 183.59M | 136.25M | 184.70M | 135.87M |
| Total Liabilities | 303.27M | 299.61M | 267.57M | 213.10M | 262.56M | 236.82M |
| Stockholders Equity | 94.42M | 97.77M | 117.63M | 148.62M | 247.08M | 451.03M |
Cash Flow | ||||||
| Free Cash Flow | -1.73M | -633.00K | -10.92M | 27.39M | -20.31M | 15.39M |
| Operating Cash Flow | 14.48M | 16.44M | 669.00K | 33.43M | -319.00K | 23.97M |
| Investing Cash Flow | -16.21M | -17.07M | -11.59M | -6.03M | -25.31M | -278.07M |
| Financing Cash Flow | -13.84M | -4.43M | 15.51M | -52.83M | 33.26M | 269.85M |
aka Brands Holding Corp Technical Analysis
Negative
10.76
Price Trends
10.34
Negative
10.50
Negative
11.03
Negative
Market Momentum
-0.38
Positive
34.61
Neutral
23.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKA, the sentiment is Negative. The current price of 10.76 is above the 20-day moving average (MA) of 10.14, above the 50-day MA of 10.34, and below the 200-day MA of 11.03, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 23.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKA.
aka Brands Holding Corp Risk Analysis
aka Brands Holding Corp disclosed 68 risk factors in its most recent earnings report. aka Brands Holding Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
aka Brands Holding Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $20.59M | -21.46 | -3.23% | 25.20% | -10.54% | -332.20% | |
46 Neutral | $56.58M | -1.07 | -24.36% | ― | 1.14% | -37.68% | |
46 Neutral | $150.52M | -13.84 | -12.05% | ― | 0.81% | 44.38% | |
45 Neutral | $102.38M | -3.10 | -29.02% | ― | 2.98% | -17.61% | |
44 Neutral | $79.16M | -2.56 | -35.90% | ― | -13.58% | -4.64% |
* Consumer Cyclical Sector Average
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aka Brands Holding Corp Corporate Events
Executive/Board ChangesShareholder Meetings
aka Brands Stockholders Back Directors and Auditor at Meeting
Positive
May 22, 2026
On May 20, 2026, a.k.a. Brands Holding Corp. held its annual meeting of stockholders, with approximately 97.6% of eligible common shares represented, indicating strong shareholder engagement and voting participation. Stockholders elected directors...
Business Operations and StrategyFinancial Disclosures
aka Brands boosts Q1 margins and raises 2026 guidance
Positive
May 12, 2026
a.k.a. Brands reported that first-quarter 2026 net sales rose 3% year over year to $132.5 million, with net loss narrowing to $7.1 million and adjusted EBITDA nearly doubling to $5.1 million as gross margin expanded sharply despite a $12 million s...
Business Operations and StrategyFinancial Disclosures
aka Brands Reports Q4 Revenue Growth Amid Margin Pressure
Neutral
Mar 5, 2026
a.k.a. Brands Holding Corp. is a portfolio of global, next‑generation fashion brands including Princess Polly, Culture Kings, Petal Pup and mnml. The company targets social media‑driven, primarily online shoppers with a data‑dri...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.