a.k.a. Brands Holding Q2 2025 Earnings: Revenue Up 7.8%, Net Loss Widens 60%

a.k.a. Brands Holding (NYSE:AKA) reported Q2 2025 revenue of $160.5m, up 7.8% YoY, but a net loss of $3.63m, a 60% increase from Q2 2024. The company beat expectations with a 3.0% revenue surprise and a 33% EPS beat. Revenue is forecast to grow 4.1% p.a. over the next 2 years, compared to a 5.7% growth forecast for the Specialty Retail industry.

a.k.a. Brands Holding Corp. (NYSE:AKA), a leading fashion brand portfolio, has released its second-quarter 2025 financial results. The company reported a 7.8% year-over-year (YoY) increase in net sales, reaching $160.5 million. This growth was primarily driven by a 13.7% rise in U.S. sales [1]. Despite the revenue surge, the company experienced a net loss of $3.6 million, or $0.34 per share, compared to $2.3 million, or $0.22 per share, in the second quarter of 2024 [1].

Adjusted EBITDA decreased to $7.5 million from $8.0 million a year ago, reflecting increased operational costs and the impact of tariffs [1]. The company's CEO, Ciaran Long, expressed confidence in the company's position, stating that they are well-positioned to continue growing brand awareness and capturing market share.

Looking ahead, a.k.a. Brands Holding Corp. expects full-year 2025 net sales to range between $608 million and $612 million, with adjusted EBITDA projected to be between $24.5 million and $27.5 million [1]. The company's outlook contemplates the estimated impact of tariffs enacted during 2025.

The company's direct-to-consumer channels remain strong, with omnichannel expansion continuing to exceed expectations. Princess Polly, one of the company's brands, opened three new stores in the second quarter and plans to reach 13 locations by year-end [1]. The company is also deepening its wholesale partnerships to drive brand awareness and new customer acquisition.

Revenue is forecast to grow 4.1% per annum over the next two years, compared to a 5.7% growth forecast for the Specialty Retail industry [2]. The company's stock price has been volatile, with analysts offering varying one-year price targets ranging from $9.00 to $30.00, with an average target of $19.75 [2].

References:

[1] https://finance.yahoo.com/news/k-brands-u-net-sales-135351514.html
[2] https://sg.finance.yahoo.com/news/k-brands-holding-corp-aka-143137632.html