AKA is anticipating a robust performance for the second quarter, projecting an adjusted EBITDA in the range of $7 million to $8 million. This expectation highlights the company's solid fundamentals and operational resilience during market fluctuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for a.k.a. Brands Holding Corp (AKA, Financial) is $21.50 with a high estimate of $30.00 and a low estimate of $9.00. The average target implies an upside of 147.13% from the current price of $8.70. More detailed estimate data can be found on the a.k.a. Brands Holding Corp (AKA) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, a.k.a. Brands Holding Corp's (AKA, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for a.k.a. Brands Holding Corp (AKA, Financial) in one year is $18.03, suggesting a upside of 107.24% from the current price of $8.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the a.k.a. Brands Holding Corp (AKA) Summary page.
AKA Key Business Developments
Release Date: March 06, 2025
- Net Sales: $575 million for fiscal 2024, a 5.2% increase over the prior year.
- US Net Sales Growth: 17% increase, highlighting strong performance in the largest market.
- Gross Margin: Improved by 200 basis points to 57% for the year.
- Adjusted EBITDA: $23.3 million, a 69% year-over-year growth.
- Fourth Quarter Net Sales: $159 million, a 6.8% increase year-over-year.
- Fourth Quarter Gross Margin: 55.9%, up 460 basis points from the previous year.
- Fourth Quarter Adjusted EBITDA: $6.2 million, with a margin increase of 300 basis points to 3.9%.
- Active Customer Base: 4.07 million, a 9.4% increase year-over-year.
- Average Order Value: $78 in the fourth quarter, a 2.6% increase year-over-year.
- Cash and Cash Equivalents: $24.2 million at the end of the fourth quarter.
- Debt: $111.7 million at year-end.
- Inventory: $95.8 million, a 5% increase compared to the previous year.
- 2025 Sales Outlook: $600 million to $610 million, representing 4% to 6% growth.
- 2025 Adjusted EBITDA Outlook: $27.5 million to $29.5 million, an 18% to 27% growth.
- Capital Expenditures for 2025: $12 million to $14 million, primarily for opening seven new stores.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- a.k.a. Brands Holding Corp (AKA, Financial) achieved a significant milestone by stabilizing the business and returning to growth, with net sales of $575 million, a 5.2% increase over the prior year.
- The company saw impressive 17% net sales growth in the US, its largest market, highlighting the strength of its brands.
- a.k.a. Brands expanded its omnichannel initiative, opening five Princess Polly stores and enhancing wholesale partnerships with retailers like Nordstrom.
- The company improved its gross margin by 200 basis points to 57% due to stronger full-price sales and high-quality merchandise.
- Adjusted EBITDA grew significantly by 69% year over year, reaching $23.3 million, demonstrating strong financial performance and strategic execution.
Negative Points
- Sales in Australia and New Zealand declined by 9.6% in the fourth quarter compared to the previous year, indicating regional challenges.
- Net sales in the rest of the world region declined by 13.5% year over year, showing weakness outside the US market.
- Marketing expenses increased to $22.3 million, up from $17.3 million in the fourth quarter of 2023, impacting overall profitability.
- General and administrative expenses rose to $24.9 million due to increased incentive compensation and non-routine legal matters.
- The company faces an approximate $10 million FX headwind in its 2025 net sales outlook, which could impact financial performance.
