aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $149.04M
• Dividend Yield: N/A
• Average Volume (3M): 15.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 8.09%
• EPS Growth: 74.06%
• Country: US
• Employees: 1,350
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Specialty Retail
• EPS (TTM): -0.78
• Shares Outstanding: 10,714,794
• 10 Day Avg. Volume: 32,496
• 30 Day Avg. Volume: 15,863
• PEG Ratio: -0.22
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.82
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.77
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $19.00
• Price Target Upside: 36.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

a.k.a. Brands Holding Corp faces significant financial challenges, including ongoing losses and high leverage, which weigh heavily on its overall stock attractiveness. While there is positive sales growth and strategic initiatives are underway, these are counterbalanced by negative earnings, valuation concerns, and potential tariff impacts. Technical indicators also suggest caution due to potential downward pressure.

Positive Factors

Business Strategy

Strategic expansion into omnichannel experiences through physical stores strengthens brand awareness and generates a 'halo effect' that boosts online traffic.

Growth Potential

Both Princess Polly and Petal & Pup will launch across Nordstrom’s entire store base, increasing the company's addressable market.

Market Positioning

A.k.a. distinguishes itself with its portfolio of digitally native fashion brands specifically targeting the next generation of consumers.

Negative Factors

Earnings Estimate

Despite lowering our first quarter estimate, we left our full-year adj. EBITDA estimate unchanged at $29.5M.

Financial Valuation

The stock is trading at significantly lower multiples compared to its peer group, presenting a potential value opportunity as the company executes its strategy.

Revenue Multiples

The stock is now trading at less than 0.5 times revenue and less than 8.0 times EBITDA, with potential for the multiple to work higher as the company executes its strategy.

aka Brands Holding Corp Business Overview & Revenue Model

Company Description

aka Brands Holding Corp (AKA) is a global fashion company specializing in the design, production, and sale of direct-to-consumer apparel. The company operates through a portfolio of digitally native brands that cater to various fashion segments, focusing primarily on young consumers. These brands offer a wide range of clothing and accessories that reflect contemporary trends and styles. aka Brands Holding Corp leverages its deep understanding of digital marketing and e-commerce strategies to engage with a global customer base.

How the Company Makes Money

aka Brands Holding Corp generates revenue primarily through the sale of apparel and fashion accessories via its portfolio of digital brands. The company's revenue model is centered on direct-to-consumer sales through e-commerce platforms, which allows it to maintain control over its brand identity, customer experience, and pricing strategies. By operating multiple brands, aka Brands Holding Corp diversifies its revenue streams, catering to different demographics and fashion preferences. The company benefits from its data-driven approach to marketing, which enhances customer acquisition and retention. Additionally, partnerships with social media influencers and strategic collaborations help amplify brand visibility and drive sales.

aka Brands Holding Corp Financial Statement Overview

Summary

aka Brands Holding Corp is facing considerable financial challenges across all verticals. Income and profitability metrics are under pressure, with negative net income and low margins. The balance sheet shows increasing leverage, posing financial risks. The cash flow situation is critical, with a sharp decline in operating cash flow and negative free cash flow indicating liquidity issues. The company must address these challenges to improve its financial health and stability.

Income Statement

The income statement reveals a challenging financial position. The gross profit margin for 2024 is approximately 56.98%, showing some efficiency in cost management. However, the company is struggling with profitability, reflected in a negative net profit margin of -4.52% for 2024 and a significant net loss. Revenue has shown fluctuations with a slight growth of 5.20% from 2023 to 2024, indicating some market presence, but the EBIT and EBITDA margins remain negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio has increased to 1.56 in 2024 from 0.92 in 2023, indicating rising leverage which may be risky. Return on equity is negative due to net losses, reflecting poor profitability for shareholders. However, the equity ratio stands at 30.54%, suggesting a moderate level of equity financing. The high level of liabilities relative to equity and assets poses a potential risk for the company.

Cash Flow

The cash flow statement highlights significant challenges. Operating cash flow has dropped sharply from $33.43 million in 2023 to $0.67 million in 2024, reflecting deteriorating cash generation from operations. Free cash flow turned negative in 2024, impacting financial flexibility. The operating cash flow to net income ratio is low due to negative net income, indicating cash flow issues. The company needs to improve its cash flow management to sustain operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
574.70M	546.26M	611.74M	562.19M	215.92M
	Gross Profit
327.50M	300.28M	337.25M	307.66M	126.40M
	EBIT
-10.32M	-83.41M	215.00K	16.38M	22.14M
	EBITDA
6.23M	-66.66M	-143.44M	27.20M	28.90M
	Net Income Common Stockholders
-25.99M	-98.89M	-176.70M	-6.09M	14.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.19M	21.86M	46.32M	38.83M	26.26M
	Total Assets
385.20M	361.72M	509.64M	687.85M	189.44M
	Total Debt
183.59M	136.25M	184.70M	135.87M	10.85M
	Net Debt
159.40M	114.39M	138.38M	97.04M	-15.41M
	Total Liabilities
267.57M	213.10M	262.56M	236.82M	50.55M
	Stockholders Equity
117.63M	148.62M	247.08M	451.03M	19.98M
Cash Flow		Free Cash Flow
-10.92M	27.39M	-20.31M	15.39M	19.93M
	Operating Cash Flow
669.00K	33.43M	-319.00K	23.97M	21.71M
	Investing Cash Flow
-11.59M	-6.03M	-25.31M	-278.07M	-2.38M
	Financing Cash Flow
15.51M	-52.83M	33.26M	269.85M	1.24M

aka Brands Holding Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.91
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKA, the sentiment is Positive. The current price of 13.91 is above the 20-day moving average (MA) of 8.81, above the 50-day MA of 10.96, and below the 200-day MA of 18.12, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 68.84 is Neutral, neither overbought nor oversold. The STOCH value of 89.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKA.

aka Brands Holding Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	74 Outperform	$1.49B	29.82	11.97%	―	9.09%	106.50%
BZUN	64 Neutral	$203.16M	―	-4.63%	―	5.34%	34.89%
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%
TDUP	60 Neutral	$845.47M	―	-69.51%	―	-10.55%	9.27%
AKA	53 Neutral	$149.04M	―	-20.57%	―	8.09%	74.06%
DIBS	48 Neutral	$89.21M	―	-17.72%	―	4.93%	-22.08%
LOGC	41 Neutral	$207.57M	―	-14.89%	―	-84.75%	77.25%

aka Brands Holding Corp Corporate Events

a.k.a. Brands Reports Strong Q1 2025 Sales Growth

a.k.a. Brands Holding Corp. reported a 10.1% increase in net sales for the first quarter of 2025 compared to the same period in 2024, with U.S. sales growing by 14.2%. The company achieved a 7.8% growth in active customers over the past year and reported an adjusted EBITDA of $2.7 million, up from $0.9 million in the previous year. The company is expanding its omnichannel presence, with Princess Polly opening new stores and debuting wholesale initiatives at Nordstrom. Despite a net loss of $8.4 million, a.k.a. Brands is optimistic about its strategic actions and flexible business model to navigate the evolving trade environment and maintain strong demand trends.

The most recent analyst rating on (AKA) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on aka Brands Holding Corp stock, see the AKA Stock Forecast page.

Spark’s Take on AKA Stock

According to Spark, TipRanks’ AI Analyst, AKA is a Underperform.

The overall score for aka Brands Holding Corp reflects significant financial challenges, with ongoing losses, high leverage, and poor cash flow management. The technical analysis indicates a downtrend, while valuation remains a concern due to negative earnings. Although the earnings call highlighted some positive growth expectations, especially in the U.S. market, the broader financial and operational difficulties weigh heavily on the stock’s attractiveness.

To see Spark’s full report on AKA stock, click here.