aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $122.54M
• Dividend Yield: N/A
• Average Volume (3M): 4.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 7.67%
• EPS Growth: 71.96%
• Country: US
• Employees: 1,350
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Specialty Retail
• EPS (TTM): -0.34
• Shares Outstanding: 10,844,082
• 10 Day Avg. Volume: 5,423
• 30 Day Avg. Volume: 4,027
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.84
• Enterprise Value/Ebitda: 52.75
• 1Y Price Target: $18.00
• Price Target Upside: 59.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 49 Neutral
• Price Target: $11.00 ▼(-2.65% Downside)

aka Brands Holding Corp's overall stock score is primarily impacted by its financial challenges, including negative profitability and high leverage. While the earnings call provided a positive outlook with strong sales growth and strategic initiatives, the technical analysis and valuation metrics suggest caution. The stock's attractiveness is limited by ongoing financial instability and a negative P/E ratio.

Positive Factors

Brand Strategy

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

Market Expansion

Both Princess Polly and Petal & Pup will launch across Nordstrom’s entire store base, increasing the company's addressable market.

Market Positioning

The company's unique marketing approach is allowing it to capitalize on increased discretionary income among Gen-Z and millennial consumers.

Negative Factors

Earnings Estimate

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

Financial Valuation

The stock is trading at significantly lower multiples compared to its peer group, presenting a potential value opportunity as the company executes its strategy.

Stock Valuation

The stock is now trading at less than 0.5 times revenue and less than 8.0 times EBITDA, with potential for the multiple to work higher as the company executes its strategy.

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

aka Brands Holding Corp faces significant financial challenges, particularly in profitability and cash flow generation. While revenue growth is present, the company struggles with negative margins and high leverage, posing risks to financial stability. Improvements in operational efficiency and cash flow management are crucial for future financial health.

Income Statement

The company has shown some revenue growth in the TTM period, but profitability remains a concern with negative net profit and EBIT margins. Gross profit margin is relatively stable, indicating some control over cost of goods sold. However, the persistent negative net income and EBIT margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 1.71 in the TTM period, indicating significant reliance on debt financing. Return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting potential financial instability.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow growth and negative free cash flow in the TTM period. The operating cash flow to net income ratio is low, indicating weak cash generation relative to net income. The negative free cash flow to net income ratio further underscores cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.11M	574.70M	546.26M	611.74M	562.19M	215.92M
Gross Profit	337.52M	327.50M	300.28M	337.25M	307.66M	126.40M
EBITDA	5.35M	6.23M	-66.66M	-143.44M	27.20M	28.90M
Net Income	-26.77M	-25.99M	-98.89M	-176.70M	-6.09M	14.33M
Balance Sheet
Total Assets	410.82M	385.20M	361.72M	509.64M	687.85M	189.44M
Cash, Cash Equivalents and Short-Term Investments	23.70M	24.19M	21.86M	46.32M	38.83M	26.26M
Total Debt	195.37M	183.59M	136.25M	184.70M	135.87M	10.85M
Total Liabilities	296.68M	267.57M	213.10M	262.56M	236.82M	50.55M
Stockholders Equity	114.14M	117.63M	148.62M	247.08M	451.03M	19.98M
Cash Flow
Free Cash Flow	-1.90M	-10.92M	27.39M	-20.31M	15.39M	19.93M
Operating Cash Flow	14.88M	669.00K	33.43M	-319.00K	23.97M	21.71M
Investing Cash Flow	-16.79M	-11.59M	-6.03M	-25.31M	-278.07M	-2.38M
Financing Cash Flow	-313.00K	15.51M	-52.83M	33.26M	269.85M	1.24M

aka Brands Holding Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 11.3 is above the 20-day moving average (MA) of 11.14, above the 50-day MA of 11.13, and below the 200-day MA of 14.12, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 90.83 is Negative, 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	73 Outperform	$1.59B	35.55	10.36%	―	10.68%	37.84%
TDUP	63 Neutral	$1.33B	―	-58.93%	―	-10.39%	14.92%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
BZUN	61 Neutral	$193.21M	―	-4.73%	―	7.91%	30.18%
DIBS	50 Neutral	$99.32M	―	-19.50%	―	3.21%	-56.15%
AKA	49 Neutral	$122.54M	―	-21.36%	―	7.67%	71.96%
LOGC	41 Neutral	$197.98M	―	-10.81%	―	-100.00%	93.34%

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.

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.