AKA Brands has reported a stronger first quarter for fiscal 2026, with improved profitability and expanding margins offsetting only modest revenue growth across its digital-first fashion portfolio.
For the three months to March 31, the group posted net sales of $132.5 million, up 3 per cent year on year, supported by a 4 per cent increase in order volumes across its portfolio of digitally native fashion brands.
Despite the modest top-line expansion, profitability showed clearer momentum. Gross margin expanded to approximately 59 per cent, driven by more disciplined merchandising, reduced reliance on discounting and continued progress in clearing legacy inventory.
The company said its ‘test and repeat’ buying model continues to support healthier sell-through and pricing outcomes. The company’s net loss narrowed to $7.1 million from $8.4 million a year earlier.
CEO Ciaran Long said the quarter reflected ongoing structural improvements across the group, particularly within its streetwear segment, which has been undergoing portfolio and inventory resets.
“We’ve expanded distribution across stores, wholesale, and marketplace, strengthened our operational foundation, and instilled greater financial discipline across the business,” Long said.
“Our first quarter results demonstrate that this strategic work is translating into our financials, and we believe 2026 will be a meaningful proof point in our trajectory.”
AKA Brands also continued to expand its omnichannel strategy during the period, investing in both digital marketing capabilities and physical retail touchpoints to improve customer engagement and lifetime value.
According to Long, Princess Polly is on track with its retail expansion, targeting 17 US stores and two in Australia by year-end, alongside a pop-up at The Grove in Los Angeles later this month.
Petal & Pup continues to build wholesale momentum across an expanding retail partner base, while Culture Kings is also seeing results from its in-house brand investment.
The company reaffirms its full-year guidance, expecting net sales of $625 million to $635 million for FY26.
