- **Q3 Results**: $147M net sales (-2% YoY) due to supply chain disruptions, but +4.4% on 2-year stack. Adjusted EBITDA $7M, gross margin 59.1% (+110bps YoY).
- **Supply Chain Recovery**: Q4 sales tracking +low single digits as inventory normalizes. AOV rebounding in Q4 with better in-stock levels.
- **Brand Momentum**: Princess Polly TikTok impressions +80M, Culture Kings exclusive collaborations, Petal & Pup India launch.
- **Financial Strength**: $23-23.5M FY25 EBITDA guidance, debt refinanced to 2028, cash flow +$21M YoY.
- **Strategic Focus**: AI integration (ChatGPT checkout), store expansion, and supply chain diversification driving long-term growth.

**【CEO Summary Section】**
- **Revenue Performance**: Q3 net sales of $147 million (-2% YoY) due to supply chain disruptions, but +4.4% on a 2-year stack. Year-to-date net sales up 5%.
- **Supply Chain Challenges**: Temporary inventory constraints caused out-of-stocks, impacting AOV (-3.7%) and sales. Q4 in-stock levels improving, with 4Q sales tracking +low single digits.
- **Brand Highlights**: 
  - **Princess Polly**: 11th U.S. store opened, TikTok impressions +80M, Australia store launch pending. Q3 U.S. & Australia sales strong despite headwinds.
  - **Petal & Pup**: Strong wholesale growth (Nordstrom +3x YoY), India launch on Nykaa Fashion.
  - **Culture Kings**: Gross margin expansion, exclusive collaborations (Alpha Industries, Von Dutch). Q4 Formula 1 & One Piece collections planned.
- **AI Integration**: Testing ChatGPT instant checkout, image editing tools, and customer experience workflows across brands.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA $7M (Q3) / $17M (YTD), up 100bps in gross margin to 59.1%. FY25 EBITDA guidance $23-23.5M.
- **Balance Sheet**: $23.4M cash, debt $111.3M (down 7% YoY). Refinanced credit facility to 2028 with $85M term loan.
- **Key Metrics**: 
  - Inventory $96.7M (-8.8% YoY), expected flat YoY by end-2025.
  - Active customers 4.07M (+50bps YoY), AOV $78 (down 3.7% YoY).
  - Gross margin guidance 56.6-57% for Q4, 57.6-57.7% FY25.

**【Q&A Key Highlights】**
- **Inventory Normalization**: Q4 inventory improving, tracking flat YoY by year-end. AOV rebounding in Q4 with better in-stock levels.
- **Store Strategy**: 12 Princess Polly stores (11 U.S., 1 Australia), 8-10 more planned for 2026. Culture Kings expanding exclusive collaborations.
- **Marketing Efficiency**: Pulled back spend during Q3 out-of-stocks, resuming in Q4 with normalized inventory.
- **Australia Growth**: 3Q of positive comps, Culture Kings first-party brands driving mid-single-digit growth.
- **Supply Chain Diversification**: Reduced China exposure, new suppliers in multiple regions with quality, pricing, and delivery capabilities.


a.k.a. Brands Holding Corp. (AKA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AKA

AKA fundamentals

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