AKA Brands, the parent company of Princess Polly and Culture Kings, has widened its losses in the third fiscal quarter of the year despite seeing its sales rise.

The 9.7 per cent increase in sales year-on-year to $161.3 million couldn’t prevent a 55.8 per cent increase in its net loss, to $7.7 million. AKA Brands said a large portion of this loss was caused by the one-off charge associated with moving its distribution center to Ohio, and insisted that it is continuing to grow as a company.

“Our third quarter results reflect strong execution against our strategic plan and demonstrate that the structural improvements we have made are driving growth and profitability,” said Ciaran Long, CEO, AKA Brands. 

“The US, our largest market, led our performance with net sales up 14 per cent, its first quarter of double-digit growth since we transformed our sourcing network last year.”

Groupwide sales in Australia and New Zealand fell by 6.7 per cent. The rest of the world, however, boomed by 79 per cent, due to Princess Polly’s growth in the UK

“Our brands each advanced their strategic priorities. Princess Polly ended the quarter with 15 US stores and plans to open at least six new US locations in 2027,” Long added.

“With our omnichannel presence reaching more customers and a clear set of growth catalysts ahead, we are confident in our strategy and the long-term value creation opportunity for shareholders.”