AKA Brands Holding Corp reported first-quarter fiscal 2026 results with net sales of $132.5 million, up 3% year over year. Adjusted EBITDA increased 89% to $5.1 million, and adjusted gross margin rose 180 basis points to 59%. Total orders reached 1.7 million, up 4.2% year over year, and active customers increased to 4.26 million, up 3.1% year over year. Inventory declined 28% as part of a strategic initiative. The stock price stayed unchanged in aftermarket trading despite a 12.7% decline over the prior week. The company provided guidance for future quarters, including an expected FY2026 EPS loss of $1.8 and a revenue target of $630 million.
"AKA Brands Holding Corp reported a robust performance in the first quarter of fiscal 2026, with net sales reaching $132.5 million, marking a 3% year-over-year increase. The company's adjusted EBITDA nearly doubled to $5.1 million, and its gross margin expanded significantly. Despite these positive results, the stock price remained stable in aftermarket trading, reflecting a cautious market sentiment."
"The company achieved a 3% increase in net sales compared to the same period last year. This growth was supported by improved inventory management and the successful implementation of a test and repeat merchandising model, particularly within its streetwear brands. The company also reported a significant improvement in its adjusted EBITDA, which nearly doubled from the previous year's quarter."
"Financial Highlights Revenue: $132.5 million, up 3% year-over-year Adjusted EBITDA: $5.1 million, up 89% from the prior year Adjusted Gross Margin: 59%, up 180 basis points year-over-year Total Orders: 1.7 million, up 4.2% year-over-year Active Customers: 4.26 million, up 3.1% year-over-year"
"Looking ahead, AKA Brands has provided guidance for future quarters with expected EPS losses and revenue forecasts. For FY2026, the company anticipates an EPS loss of $1.8, with a revenue target of $630"
Read at Investing.com South Africa
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