aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $131.43M
• Dividend Yield: N/A
• Average Volume (3M): 4.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 8.09%
• EPS Growth: 74.06%
• Country: US
• Employees: 1,350
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Specialty Retail
• EPS (TTM): -0.34
• Shares Outstanding: 10,844,082
• 10 Day Avg. Volume: 1,604
• 30 Day Avg. Volume: 4,054
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 0.85
• Enterprise Value/Ebitda: 95.85
• 1Y Price Target: $21.50
• Price Target Upside: 77.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $12.00 ▼(-0.99% Downside)

The overall score reflects a company with strong sales growth and strategic initiatives but facing significant profitability challenges and high leverage. The earnings call provided a positive outlook, but financial performance and valuation concerns weigh heavily on the score.

Positive Factors

Business Model

The 'test and repeat' merchandising model introduces new and exclusive fashion weekly, minimizing inventory risk and quickly responding to trends.

Market Expansion

Strategic expansion into omnichannel experiences through physical stores strengthens brand awareness and generates a 'halo effect' that boosts online traffic.

Negative Factors

Financial Estimates

Despite lowering the first quarter estimate, the full-year adj. EBITDA estimate remained unchanged at $29.5M.

Valuation

The stock is trading at significantly lower multiples compared to its peer group, presenting a potential concern if the strategy does not execute as planned.

aka Brands Holding Corp Business Overview & Revenue Model

Company Description

AKA Brands Holding Corp is a digitally driven, direct-to-consumer fashion retailer that operates a portfolio of high-growth, digitally native fashion brands. The company focuses on connecting with the millennial and Gen Z consumer base, offering a curated collection of fashion-forward apparel and accessories. AKA Brands leverages its digital platforms to engage with customers and deliver an omnichannel shopping experience.

How the Company Makes Money

AKA Brands makes money primarily through the sale of apparel and accessories via its various digital platforms and e-commerce websites. The company generates revenue by leveraging its portfolio of brands, which each target specific fashion markets and customer demographics. AKA Brands' revenue streams are primarily derived from direct sales to consumers, utilizing efficient supply chain and digital marketing strategies to optimize profitability. Additionally, the company may engage in collaborations or partnerships with influencers and other brands to expand its reach and enhance its product offerings.

aka Brands Holding Corp Financial Statement Overview

Summary

a.k.a. Brands is experiencing modest revenue growth but struggles with profitability, indicated by negative EBIT and net profit margins. High leverage and negative equity returns are concerning, despite improved operating cash flow.

Income Statement

The income statement shows slight revenue growth with TTM revenue increasing by 2.06% from the previous year. However, the company is facing profitability challenges as indicated by negative EBIT and net income margins. The gross profit margin remains stable at 56.5%, but the negative net profit margin of -4.3% in the TTM suggests ongoing losses. The consistent decline in EBIT margins from a positive figure in 2020 to negative in recent years highlights operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The debt-to-equity ratio has increased to 1.8, indicating higher leverage, which could pose risks if earnings do not improve. The equity ratio has decreased, with stockholders' equity now making up 28.1% of total assets compared to 35.5% in the previous year. Despite these challenges, the return on equity is negative due to continued net losses, highlighting the need for strategic financial management.

Cash Flow

Cash flow analysis reveals a mixed picture. The company has managed to generate positive operating cash flow in the TTM, a positive shift from the previous period. However, free cash flow remains negative, indicating insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is not meaningful due to negative net income, and the free cash flow to net income ratio is similarly impacted by the negative earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	574.70M	546.26M	611.74M	562.19M	215.92M
Gross Profit	327.50M	300.28M	337.25M	307.66M	126.40M
EBITDA	6.23M	-66.66M	-143.44M	27.20M	28.90M
Net Income	-25.99M	-98.89M	-176.70M	-6.09M	14.33M
Balance Sheet
Total Assets	385.20M	361.72M	509.64M	687.85M	189.44M
Cash, Cash Equivalents and Short-Term Investments	24.19M	21.86M	46.32M	38.83M	26.26M
Total Debt	183.59M	136.25M	184.70M	135.87M	10.85M
Total Liabilities	267.57M	213.10M	262.56M	236.82M	50.55M
Stockholders Equity	117.63M	148.62M	247.08M	451.03M	19.98M
Cash Flow
Free Cash Flow	-10.92M	27.39M	-20.31M	15.39M	19.93M
Operating Cash Flow	669.00K	33.43M	-319.00K	23.97M	21.71M
Investing Cash Flow	-11.59M	-6.03M	-25.31M	-278.07M	-2.38M
Financing Cash Flow	15.51M	-52.83M	33.26M	269.85M	1.24M

aka Brands Holding Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKA, the sentiment is Positive. The current price of 12.12 is above the 20-day moving average (MA) of 11.24, above the 50-day MA of 11.61, and below the 200-day MA of 15.14, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKA.

aka Brands Holding Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	71 Outperform	$1.40B	31.21	10.36%	―	10.68%	37.84%
Sector *	70 Neutral	1.62B	15.45	23.44%	6.36%	7.82%	-35.37%
TDUP	60 Neutral	$1.23B	―	-58.93%	―	-10.39%	14.92%
AKA	58 Neutral	$131.43M	―	-21.36%	―	8.09%	74.06%
BZUN	52 Neutral	$172.16M	―	-4.61%	―	6.05%	29.58%
DIBS	49 Neutral	$94.60M	―	-19.50%	―	3.21%	-56.15%
LOGC	41 Neutral	$195.05M	―	-10.81%	―	-84.75%	77.25%

aka Brands Holding Corp Corporate Events

aka Brands Reports Q2 2025 Sales Increase

a.k.a. Brands Holding Corp. reported a 7.8% increase in net sales for the second quarter of 2025 compared to the previous year, with U.S. sales up by 13.7%. Despite a net loss of $3.6 million, the company achieved $7.5 million in adjusted EBITDA, reflecting strong brand performance and strategic execution. The company continues to expand its retail footprint and deepen wholesale partnerships, with notable success in launching brands at Nordstrom. The diversification of sourcing initiatives is on track, enhancing supply chain flexibility. The company projects continued growth and market share expansion in the near and long term.

The most recent analyst rating on (AKA) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on aka Brands Holding Corp stock, see the AKA Stock Forecast page.

aka Brands Elects New Board Members at Annual Meeting

On May 27, 2025, aka Brands Holding Corp held its annual meeting of shareholders, with 77.56% of total shares represented. During the meeting, Christopher Dean, Ilene Eskenazi, and Matthew Hamilton were elected to the board of directors for terms ending in 2028. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (AKA) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on aka Brands Holding Corp stock, see the AKA Stock Forecast page.

a.k.a. Brands Reports Strong Q1 2025 Sales Growth

a.k.a. Brands Holding Corp. reported a 10.1% increase in net sales for the first quarter of 2025 compared to the same period in 2024, with U.S. sales growing by 14.2%. The company achieved a 7.8% growth in active customers over the past year and reported an adjusted EBITDA of $2.7 million, up from $0.9 million in the previous year. The company is expanding its omnichannel presence, with Princess Polly opening new stores and debuting wholesale initiatives at Nordstrom. Despite a net loss of $8.4 million, a.k.a. Brands is optimistic about its strategic actions and flexible business model to navigate the evolving trade environment and maintain strong demand trends.

The most recent analyst rating on (AKA) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on aka Brands Holding Corp stock, see the AKA Stock Forecast page.