a.k.a. Brands Holding Corp. reported strong financial results for the second quarter ended June 30, 2025, on August 6, 2025. Net sales increased 7.8% year-over-year to $160.5 million, surpassing expectations and marking the fifth consecutive quarter of growth. U.S. net sales continued to be robust, rising 13.7% to $108.4 million.
The company posted a net loss of $(3.6) million, or $(0.34) per share, which was less than the anticipated loss. Adjusted EBITDA for the quarter was $7.5 million, in line with expectations. Gross margin stood at 57.5%, with higher tariffs partially offsetting gains from full-price selling and improved inventory turnover.
a.k.a. Brands raised its full-year 2025 net sales guidance to a range of $608 million to $612 million, up from the prior $600 million to $610 million. The low end of the Adjusted EBITDA guidance was also raised, now expected to be between $24.5 million and $27.5 million. Capital expenditures for the year are projected higher, between $14 million and $16 million, reflecting ongoing store rollouts.
Operational highlights included Princess Polly opening three new stores in Q2, remaining on track to reach 13 locations by year-end, with plans for 8 to 10 additional stores in 2026. The company also reported that its sourcing diversification initiatives are on schedule, with products from new vendors being received and positive feedback on timelines, quality, and cost.
Cash flow from operations showed significant improvement, reaching $10.0 million for the first six months of 2025, compared to an outflow of $(4.2) million in the prior year period. Inventory levels decreased by 13.4% to $92.5 million, boosting working capital efficiency.
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