a.k.a. Brands 2025 Q1 Earnings Revenue Climbs 10.1% Amid Narrowed Losses

a.k.a. Brands (AKA) reported its fiscal 2025 Q1 earnings on May 13th, 2025. Results for the quarter slightly exceeded expectations with a 10.1% increase in revenue, reaching $128.66 million. The company's guidance for the full year remains unchanged, anticipating net sales between $600 million and $610 million, reflecting growth of 4% to 6%. Adjusted EBITDA projections were also affirmed, ranging from $24 million to $27.5 million, accounting for potential tariff impacts.

Revenue
The total revenue of a.k.a. Brands increased by 10.1% to $128.66 million in 2025 Q1, up from $116.84 million in 2024 Q1.

Earnings/Net Income
a.k.a. Brands narrowed losses to $0.78 per share in 2025 Q1 from a loss of $0.85 per share in 2024 Q1, marking an 8.2% improvement. The company reduced its net loss to $-8.35 million, a 6.5% decrease from the $-8.93 million loss reported in 2024 Q1. Despite losses, the improvement in EPS indicates a positive trend towards profitability.

Price Action
The stock price of a.k.a. Brands has edged down 0.00% during the latest trading day, surged 16.47% over the most recent full trading week, and plummeted 19.52% month-to-date.

Post Earnings Price Action Review
The strategy of buying a.k.a. Brands stock when revenues miss and holding for 30 days resulted in a 10.77% loss during backtesting, showing it is not a viable strategy. The maximum drawdown reached 11.78%, indicating significant loss potential. On average, losing trades incurred a 3.54% loss, highlighting a high rate of unsuccessful trades. These results suggest that this strategy is ineffective for real trading, as it tends to yield more losses than gains.

CEO Commentary
Ciaran Long, Chief Executive Officer, expressed optimism about a.k.a. Brands' strong first quarter performance, noting a 12% growth in net sales to $129 million and highlighting the effectiveness of their strategic initiatives which led to four consecutive quarters of growth. He acknowledged challenges from the evolving trade policies but emphasized the company's proactive approach to diversifying their supply chain, minimizing reliance on China, and maintaining high-quality standards. Long outlined three strategic priorities for 2025: enhancing customer engagement through innovative marketing, expanding brand presence via physical retail and wholesale partnerships, and streamlining operations to strengthen financial foundations.

Guidance
For the full year 2025, a.k.a. Brands expects net sales between $600 million and $610 million, reflecting a growth range of 4% to 6%. The adjusted EBITDA outlook has been adjusted to a range of $24 million to $27.5 million, accounting for anticipated impacts from tariffs. For the second quarter, the company anticipates net sales between $154 million and $158 million, gross margin between 57.2% and 57.4%, and adjusted EBITDA between $7 million and $8 million.

Additional News
a.k.a. Brands recently appointed Ciaran Long as Chief Executive Officer, effective January 13, 2025. Long, previously the Interim CEO and CFO, has been pivotal in driving significant milestones for the company, including a return to net sales growth and a notable increase in adjusted EBITDA. The company also announced the expansion of its Princess Polly brand, planning to open seven new stores across the U.S. in 2025, including its first location in New York City’s SoHo district. These strategic moves aim to strengthen a.k.a. Brands' market presence and operational resilience.