GICS Sector : Consumer Cyclical
a.k.a. Brands Holding Corp.operates a portfolio of online fashion brands in the United States, Australia, and internationally.It offers apparel, footwear, and accessories through its online stores under the Princess Polly, Culture Kings, Petal & Pup, mnml, and Rebdolls brands, as well as operates eight physical stores under the Culture Kings brand name.
The company reported a decline in net sales of 1.9% to $147.1 million, and 2.7% on a constant currency basis compared to the same period last year. The net sales decline was largely due to supply chain disruptions, particularly in the U.S. business, which saw a 3.6% decline. However, the Australia region continued to grow, with sales increasing 5.1%. Gross margin increased 110 basis points to 59.1%, ahead of expectations. Adjusted EBITDA was $7 million, and EPS came out at -$0.46, slightly below estimates of -$0.44.
Publication Date: Nov -16
The company made meaningful progress on its strategic priorities, including opening Princess Polly's 11th store, expanding wholesale partnerships, and refinancing debt. The Australia region continues to be a growth driver, with sales increasing 5.1%. The company remains committed to building its brands for the long term, delivering high-quality fashion to customers, and balancing growth and profitability. As Ciaran Long noted, "We will attract and retain customers on our direct-to-consumer channels through trend-driven exclusive merchandising and distinctive marketing strategies."
The company expects net sales to be between $598 million to $602 million, representing growth in the 4% to 5% range. Adjusted EBITDA is expected to be between $23 million to $23.5 million. Analysts estimate next year's revenue growth at 4.7%. The company's guidance suggests a recovery in sales growth, driven by improved inventory levels and a strong performance in the Australia region.
With a P/S Ratio of 0.23, the stock appears to be reasonably valued. However, the EV/EBITDA ratio of 57.75 suggests that the market is pricing in significant growth expectations. The ROE of -22.3% and ROIC of -3.47% indicate that the company is currently unprofitable. The Net Debt / EBITDA ratio of 32.11 highlights the company's high debt levels relative to its EBITDA.
a.k.a. Brands (NYSE:AKA) Shares Down 4.5% – Time to Sell?
Dec -02
a.k.a. Brands Holding Corp. (AKA) Q3 2025 Earnings Call Transcript
Nov -06
a.k.a. Brands (AKA) Reports Q3 Loss, Misses Revenue Estimates
Nov -05
a.k.a. Brands Holding Corp. Reports Third Quarter 2025 Financial Results
Nov -05
Earnings Preview: a.k.a. Brands (AKA) Q3 Earnings Expected to Decline
Oct -29
Does a.k.a. Brands (AKA) Have the Potential to Rally 48.44% as Wall Street Analysts Expect?
Oct -23
a.k.a. Brands Holding Corp. to Report Third Quarter 2025 Financial Results on November 5, 2025
Oct -22
a.k.a. Brands (AKA) Shows Fast-paced Momentum But Is Still a Bargain Stock
Oct -16
Next-generation fashion brands from a.k.a. Brands Holding Corp. are driven by strong e-commerce capabilities, influencer marketing, and social media engagement. Additionally, they focus on trendy and affordable products, leveraging celebrity partnerships and collaborations to stay relevant. Their ability to quickly respond to changing consumer preferences and tastes also contributes to their 5.0% growth.
Petite Studio is a fashion brand that offers trendy and affordable clothing for young women.
Princess Polly is a fashion brand that offers a wide range of clothing, shoes, and accessories for young women.
Culture Kings is a streetwear brand that offers a wide range of clothing, shoes, and accessories for men and women.
BoohooMan is a fashion brand that offers trendy and affordable clothing for men.
The threat of substitutes for a.k.a. Brands Holding Corp. is moderate due to the presence of alternative fashion brands and online marketplaces.
The bargaining power of customers is high due to the availability of numerous fashion brands and online marketplaces, allowing customers to easily switch between brands.
The bargaining power of suppliers is low due to the company's large scale of operations and ability to negotiate favorable terms with suppliers.
The threat of new entrants is moderate due to the presence of barriers to entry, such as high marketing and advertising costs, but also the potential for new entrants to disrupt the market.
The intensity of rivalry is high due to the presence of numerous fashion brands and online marketplaces, leading to intense competition for market share.
| Value | |
|---|---|
| Debt Weight | 47.83% |
| Debt Cost | 8.04% |
| Equity Weight | 52.17% |
| Equity Cost | 10.63% |
| WACC | 9.39% |
| Leverage | 91.68% |
Value: 9.3
Growth: 3.8
Quality: 6.8
Yield: 5.0
Momentum: 0.5
Volatility: 5.3
1-Year Total Return ->
Value: 4.7
Growth: 6.0
Quality: 6.4
Yield: 0.0
Momentum: 4.5
Volatility: 2.7
1-Year Total Return ->
Value: 8.4
Growth: 4.7
Quality: 5.2
Yield: 0.0
Momentum: 1.0
Volatility: 4.0
1-Year Total Return ->
Value: 9.8
Growth: 0.6
Quality: 3.6
Yield: 5.0
Momentum: 1.5
Volatility: 2.0
1-Year Total Return ->
Value: 9.4
Growth: 1.0
Quality: 2.7
Yield: 0.0
Momentum: 0.5
Volatility: 2.0
1-Year Total Return ->
Value: 7.2
Growth: 3.4
Quality: 2.2
Yield: 0.0
Momentum: 0.5
Volatility: 0.7
1-Year Total Return ->