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aka Brands Holding Corp (AKA)
NYSE:AKA
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aka Brands Holding Corp
(NYSE:AKA)
45Neutral
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 (AKA) vs. S&P 500 (SPY)
Market Cap
$92.90M
Dividend YieldN/A
Average Volume (3M)8.19K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth8.09%
EPS Growth74.06%
CountryUS
Employees1,350
SectorConsumer Cyclical
Sector Strength73
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.78
Shares Outstanding10,690,842
10 Day Avg. Volume9,507
30 Day Avg. Volume8,191
Financial Highlights & Ratios
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 Cap2.64
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.77
Enterprise Value/Ebitda-2.00
Forecast
1Y Price Target
$19.00Price Target Upside118.39% Upside
Rating ConsensusHold
Number of Analyst Covering4
aka Brands Holding Corp Business Overview & Revenue Model
Company Descriptiona.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 was founded in 2018 and is headquartered in San Francisco, California.
How the Company Makes Moneyaka 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.40
Negative
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.45
Neutral
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.35
Negative
| 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
Neutral
8.70
Price Trends
10.99
Negative
14.29
Negative
18.15
Negative
Market Momentum
-0.90
Negative
46.09
Neutral
78.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKA, the sentiment is Neutral. The current price of 8.7 is above the 20-day moving average (MA) of 7.97, below the 50-day MA of 10.99, and below the 200-day MA of 18.15, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AKA.
aka Brands Holding Corp Risk Analysis
aka Brands Holding Corp disclosed 67 risk factors in its most recent earnings report. aka Brands Holding Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
aka Brands Holding Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.45B | 28.30 | 11.97% | ― | 9.09% | 106.50% | |
64 Neutral | $205.30M | ― | -4.63% | ― | 5.34% | 34.89% | |
61 Neutral | $7.00B | 11.55 | 3.07% | 3.89% | 2.60% | -21.53% | |
60 Neutral | $744.96M | ― | -69.51% | ― | -10.55% | 9.27% | |
47 Neutral | $96.37M | ― | -17.72% | ― | 4.93% | -22.08% | |
45 Neutral | $92.90M | ― | -20.57% | ― | 8.09% | 74.06% | |
41 Neutral | $200.12M | ― | -14.89% | ― | -84.75% | 77.25% |
* Consumer Cyclical Sector Average
Performance Comparison
AKA
aka Brands Holding Corp
13.88
-15.62
-52.95%
BZUN
Baozun
3.40
0.30
9.68%
RVLV
Revolve Group
19.89
-2.79
-12.30%
LOGC
ContextLogic
7.37
1.67
29.30%
TDUP
thredUP
6.92
4.88
239.22%
DIBS
1stdibs.com
2.45
-3.44
-58.40%
aka Brands Holding Corp Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in net sales, successful expansion in physical stores and omni-channel initiatives, and improved profitability. However, the company faces challenges due to tariffs and increased expenses. The strategic initiatives to diversify the supply chain reflect a proactive approach to mitigate risks.Q1-2025 Updates
Positive Updates
Consistent Growth in Net Sales
Net sales increased approximately 12% on a constant currency basis to $129 million, with the U.S. growing 14% and Australia/New Zealand growing more than 6%.
Expansion of Physical and Omni-Channel Presence
Princess Polly opened its seventh store in SoHo, marking its strongest opening, and expanded to all Nordstrom stores, with encouraging early results.
Improved Profitability
The company exceeded profitability expectations with $2.7 million of adjusted EBITDA, reflecting strong top-line growth and operating discipline.
Strong Brand Performance
Princess Polly and Petal & Pup showed strong growth, with Princess Polly seeing double-digit revenue growth in dresses and significant expansion in lifestyle categories.
Successful Strategic Initiatives
The company has made significant progress in diversifying its supply chain, with minimal expected exposure to China by Q4 as production shifts to Vietnam and Turkey.
Negative Updates
Uncertainty Due to Tariffs
The current macro environment and uncertainty surrounding trade and tariffs pose potential challenges, with a transitory impact expected on the business.
Increased Expenses
General and administrative expenses increased due to higher wages and incentive compensation, with selling expenses affected by new store openings.
Impact of Adjustments in Supply Chain
The tariff environment will have a brief and transitory impact, primarily in Q2 and Q3, as the company shifts production out of China.
Company Guidance
The guidance provided during a.k.a. Brands Holding's first quarter 2025 earnings call included several key metrics. The company reported a net sales increase of approximately 12% on a constant currency basis to $129 million, with the U.S. market growing by 14%. Sales in Australia and New Zealand also saw growth of over 6%. The company achieved an 8% increase in its active customer base over the past 12 months and delivered $2.7 million in adjusted EBITDA. For the full fiscal year 2025, a.k.a. Brands projects net sales between $600 million and $610 million, reflecting a growth range of 4% to 6%. Adjusted EBITDA is expected to be between $24 million and $27.5 million. The company aims to achieve a gross margin between 56.4% and 56.7%. The guidance anticipates that the recent tariff impacts will be most pronounced in the second and third quarters, with mitigation strategies in place, including supply chain diversification and selective pricing actions.aka Brands Holding Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
a.k.a. Brands Reports Strong Q1 2025 Sales Growth
Positive
May 13, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.