Q1 2026 AKA Brands Holding Corp Earnings Call Transcript
Key Points
- Net sales increased by 3% to $132.5 million, with adjusted EBITDA of $5.1 million, exceeding expectations.
- Gross margin expanded by approximately 180 basis points year over year, reaching 59%, driven by improved inventory discipline and stronger full-price sell-through.
- Princess Polly's omnichannel expansion is progressing well, with new store openings in the US and Australia, and strong performance in wholesale and marketplace channels.
- Petal & Pup is gaining traction with significant growth in event dressing and expanding into new product categories and wholesale accounts.
- Culture Kings and Minimal brands are showing positive results from the test-and-repeat model, with improved full-price mix and gross margin.
- The company faced a $12 million write-off of legacy streetwear inventory as part of transitioning to the test-and-repeat model.
- Selling expenses increased to 30.9% of net sales due to higher store selling expenses from retail expansion.
- General and administrative expenses rose due to increased headcount and technology investments, impacting overall profitability.
- The macroeconomic environment remains dynamic, with some pressure on consumers in the US and Australia affecting sales.
- Air freight costs have increased, impacting margins, although these are accounted for in the company's guidance.
Greetings, and welcome to the AKA Brands Holding Corp first-quarter and fiscal 2026 earnings conference call. (Operator Instructions) As a reminder, the conference is being recorded.
It is now my pleasure to introduce Emily Schwartz, Vice President of Investor Relations. Please go ahead.
Good afternoon. Thank you for joining AKA Brands to discuss our first quarter 2026 results released this afternoon, which can be found on our website at ir.aka-brands.com.
With me on the call today is Ciaran Long, Chief Executive Officer and Kevin Grant, Chief Financial Officer. Before we get started, I'd like to remind you of the company's safe harbor language. Management may make forward-looking statements, which refer to expectations, projections, and other characterizations of future events, including guidance and underlying assumptions.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially
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