aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $114.65M
• Dividend Yield: N/A
• Average Volume (3M): 9.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 8.09%
• EPS Growth: 74.06%
• Country: US
• Employees: 1,350
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): -0.78
• Shares Outstanding: 10,714,794
• 10 Day Avg. Volume: 12,425
• 30 Day Avg. Volume: 9,361
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.05
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: -5.73
• 1Y Price Target: $20.00
• Price Target Upside: 86.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $11.50 ▲(7.48%Upside)

The overall stock score reflects modest revenue growth overshadowed by profitability concerns, high leverage, and bearish technical indicators. The positive aspects from the earnings call and corporate events suggest strategic progress, but risks from tariffs and high expenses remain. Investors should weigh these factors carefully.

Positive Factors

Business Model

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

Expansion Strategy

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

Market Opportunity

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

Negative Factors

Earnings Estimate

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

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

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 & Pup, mnml, and Rebdolls brands, as well as operates eight physical stores under the Culture Kings brand name. The company was founded in 2018 and is headquartered in San Francisco, California.

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 Holding Corp is experiencing modest revenue growth but continues to struggle with profitability. High leverage and negative equity returns are concerning, and while operating cash flow has shown improvement, free cash flow is negative, limiting financial flexibility. The company needs to focus on turning around its operational performance to improve financial health and reduce risks associated with high leverage.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	586.51M	574.70M	546.26M	611.74M	562.19M	215.92M
Gross Profit	331.22M	327.50M	300.28M	337.25M	307.66M	126.40M
EBITDA	2.94M	6.23M	-66.66M	-143.44M	27.20M	28.90M
Net Income	-25.41M	-25.99M	-98.89M	-176.70M	-6.09M	14.33M
Balance Sheet
Total Assets	396.57M	385.20M	361.72M	509.64M	687.85M	189.44M
Cash, Cash Equivalents and Short-Term Investments	26.68M	24.19M	21.86M	46.32M	38.83M	26.26M
Total Debt	201.17M	183.59M	136.25M	184.70M	135.87M	10.85M
Total Liabilities	285.09M	267.57M	213.10M	262.56M	236.82M	50.55M
Stockholders Equity	111.48M	117.63M	148.62M	247.08M	451.03M	19.98M
Cash Flow
Free Cash Flow	-7.79M	-10.92M	27.39M	-20.31M	15.39M	19.93M
Operating Cash Flow	6.48M	669.00K	33.43M	-319.00K	23.97M	21.71M
Investing Cash Flow	-14.28M	-11.59M	-6.03M	-25.31M	-278.07M	-2.38M
Financing Cash Flow	14.20M	15.51M	-52.83M	33.26M	269.85M	1.24M

aka Brands Holding Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.7 is below the 20-day moving average (MA) of 12.21, below the 50-day MA of 10.86, and below the 200-day MA of 17.01, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	73 Outperform	$1.49B	29.73	11.97%	―	9.09%	106.50%
Sector *	67 Neutral	¥253.98B	13.04	6.57%	2.83%	5.07%	-11.36%
TDUP	62 Neutral	$880.94M	―	-69.51%	―	-10.55%	9.27%
AKA	58 Neutral	$114.65M	―	-20.57%	―	8.09%	74.06%
BZUN	55 Neutral	$159.71M	―	-4.61%	―	6.05%	29.58%
DIBS	53 Neutral	$100.27M	―	-17.72%	―	4.93%	-22.08%
LOGC	41 Neutral	$177.44M	―	-14.89%	―	-84.75%	77.25%

aka Brands Holding Corp Corporate Events

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.