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aka Brands Holding Corp
(NYSE:AKA)
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Rating:59Neutral
Price Target:
$12.00
▲(9.39% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by still-weak core financial performance (ongoing losses and elevated leverage despite improving margins and cash flow). Offsetting this, the latest earnings call points to improving profitability and reiterated guidance with positive momentum, and technical indicators show a constructive uptrend. Valuation remains unattractive/uncertain due to negative earnings and no dividend support.
Positive Factors
Gross margin expansion
Sustained gross-margin expansion driven by lower tariffs and higher full-price sell-through increases structural profitability per unit sold. If maintained, higher gross margins improve cash generation and provide buffer to fund marketing, store rollout, and debt paydown over multiple quarters.
Negative Factors
Elevated leverage
Materially higher leverage and reduced equity limit financial flexibility and increase vulnerability to margin or revenue shocks. Elevated net leverage constrains reinvestment capacity and raises refinancing risk, making multi-quarter margin recovery essential to sustainably reduce debt levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
Sustained gross-margin expansion driven by lower tariffs and higher full-price sell-through increases structural profitability per unit sold. If maintained, higher gross margins improve cash generation and provide buffer to fund marketing, store rollout, and debt paydown over multiple quarters.
Read all positive factors
aka Brands Holding Corp (AKA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$119.58M
Dividend YieldN/A
Average Volume (3M)2.48K
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth0.91%
EPS Growth1.04%
CountryUS
Employees1,650
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-2.48
Shares Outstanding10,991,059
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.00Price Target Upside18.51% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-1.8
Revenue Forecast (FY)$629.74M
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, New Zealand, and internationally. The company offers dresses, tops, shoes, and accessories for customers between the ages of 15 and 25; dres...
How the Company Makes Money
aka Brands makes money primarily by selling apparel, footwear, and accessories directly to consumers through its brands’ e-commerce websites (and related digital storefronts). Revenue is generated when customers purchase products at retail prices;...
aka Brands Holding Corp Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong profitability and operational progress: adjusted EBITDA grew 16%, gross margin expanded materially, inventory and debt were reduced, and omnichannel initiatives (notably Princess Polly and the U.K. distribution center) showed clear traction. At the same time, revenue was essentially flat year-over-year (constant currency down 5.3%), Australia & New Zealand sales contracted ~13%, orders were slightly down, and management flagged near-term margin pressures from tariffs and air freight plus a one-time Q3 charge. Overall, positive momentum across margins, balance sheet improvements and execution on store and channel expansion outweigh the regional and top-line pressures, supporting an optimistic outlook for the back half of the year.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA increased 16% year-over-year to $8.7 million (highest quarterly adjusted EBITDA since Q2 2022). Adjusted EBITDA margin expanded 80 basis points to 5.5%, reflecting strong profit flow-through from margin improvements.
Negative Updates
Flat Reported Net Sales and Constant Currency Decline
Net sales were essentially flat at $160.1 million versus $160.5 million a year ago. On a constant currency basis, net sales declined 5.3% year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA increased 16% year-over-year to $8.7 million (highest quarterly adjusted EBITDA since Q2 2022). Adjusted EBITDA margin expanded 80 basis points to 5.5%, reflecting strong profit flow-through from margin improvements.
Read all positive updates
Company Guidance
Management reiterated fiscal 2026 guidance of net sales of $625–$635 million and adjusted EBITDA of $30–$32 million, and provided Q3 guidance of net sales $160–$164 million, gross margin of ~59% and adjusted EBITDA of $8–$8.5 million (which excludes a one‑time ~$3 million Q3 distribution center relocation charge recorded in selling expenses); they also noted Q3‑to‑date momentum with net sales up high single digits (U.S. up double digits), and gave modeling assumptions of FY stock‑based compensation ~$6.5–7.0 million, depreciation & amortization ~$20–21 million, interest & other ~$16–18 million, an effective tax rate of (‑10)%, CapEx $18–20 million and ~11 million weighted average diluted shares.aka Brands Holding Corp Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
38
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 603.56M | 600.21M | 574.70M | 546.26M | 611.74M | 562.19M |
| Gross Profit | 359.53M | 326.30M | 327.50M | 300.28M | 337.25M | 307.66M |
| EBITDA | 7.99M | -1.58M | 6.23M | -66.66M | -153.22M | 20.96M |
| Net Income | -26.75M | -31.43M | -25.99M | -98.89M | -176.70M | -5.97M |
Balance Sheet | ||||||
| Total Assets | 405.04M | 397.38M | 385.20M | 361.72M | 509.64M | 687.85M |
| Cash, Cash Equivalents and Short-Term Investments | 21.05M | 20.27M | 24.19M | 21.86M | 46.32M | 38.83M |
| Total Debt | 216.29M | 211.79M | 183.59M | 136.25M | 184.70M | 135.87M |
| Total Liabilities | 309.47M | 299.61M | 267.57M | 213.10M | 262.56M | 236.82M |
| Stockholders Equity | 95.57M | 97.77M | 117.63M | 148.62M | 247.08M | 451.03M |
Cash Flow | ||||||
| Free Cash Flow | 9.09M | -633.00K | -10.92M | 27.39M | -20.07M | 15.39M |
| Operating Cash Flow | 25.15M | 16.44M | 669.00K | 33.43M | -319.00K | 23.97M |
| Investing Cash Flow | -16.06M | -17.07M | -11.59M | -6.03M | -25.31M | -278.07M |
| Financing Cash Flow | -12.51M | -4.43M | 15.51M | -52.83M | 33.26M | 269.85M |
aka Brands Holding Corp Technical Analysis
Negative
10.97
Price Trends
10.43
Positive
10.38
Positive
10.86
Negative
Market Momentum
0.02
Positive
44.03
Neutral
30.95
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 10.97 is below the 20-day moving average (MA) of 11.00, above the 50-day MA of 10.43, and above the 200-day MA of 10.86, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 30.95 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% | |
59 Neutral | $119.58M | -4.23 | -26.90% | ― | 0.91% | 1.04% | |
48 Neutral | $164.71M | -22.64 | -8.97% | ― | 2.26% | 61.28% | |
47 Neutral | $15.53M | -11.57 | -4.88% | 31.58% | -14.38% | -615.84% | |
47 Neutral | $91.42M | -2.86 | -39.54% | ― | -21.25% | -5.40% | |
46 Neutral | $46.43M | -0.89 | -26.17% | ― | 1.14% | -37.68% |
* Consumer Cyclical Sector Average
AKA
aka Brands Holding Corp
10.51
-0.47
-4.28%
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BARK
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aka Brands Holding Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
aka Brands reports improved Q2 profitability and outlook
Positive
Aug 5, 2026
In the quarter ended June 30, 2026, a.k.a. Brands reported net sales of $160.1 million, essentially flat year-on-year, but improved profitability with a narrower net loss of $0.2 million and a 16% increase in adjusted EBITDA to $8.7 million, suppo...
Executive/Board Changes
aka Brands Appoints New Independent Director to Board
Positive
Aug 4, 2026
On July 30, 2026, a.k.a. Brands Holding Corp announced that longtime director Ilene Eskenazi resigned from the Board of Directors and its Compensation Committee, effective August 3, 2026, with the company noting her departure was not due to any di...
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...
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.