AKA Brands reported a bigger loss in the fourth fiscal quarter despite an uplift in sales.
For the quarter ended December 31, the company’s net loss widened from $9.4 million in the year-ago period to $14.5 million. Adjusted EBITDA dropped nearly 60 per cent to $2.5 million.
The top-line results were more optimistic, with net sales growing 3.1 per cent to $164 million. Net sales in the US market rose 5.3 per cent.
For the full year, net sales increased 4.4 per cent to $600.2 million, including a 7 per cent growth in the US, while net loss rose from $26 million to $31.4 million.
“We’re pleased with the progress we made in 2025 as we continued to execute against our strategic priorities and strengthen the foundation of the business,” said Ciaran Long, CEO of AKA Brands.
“During the year, we diversified our supply chain, reduced inventory by 10 per cent, opened eight new Princess Polly stores and continued to invest in our brands. Importantly, we expanded gross margin by 30 basis points despite a dynamic trade environment,” Long added.
For FY26, the company expects net sales of between $625 million and $635 million.
AKA has also announced the upcoming openings of Princess Polly stores in Houston, Texas; Frisco, Texas; Orlando, Florida; and Edina, Minnesota, scheduled for this year’s second half.
Additional locations in Jacksonville, Florida; Nashville, Tennessee; Boca Raton, Florida; and Charlotte, North Carolina will open early next year.
The company’s brand portfolio also includes Culture Kings, Petal and Pup, and Mnml.
