AKA Stock Forecast & Price Target

a.k.a. Brands Holding Corp is projected to achieve total revenues of $156.6 million, reflecting a year-over-year increase of 4.4%, supported by an impressive sales growth of 7.8% YoY to $160.5 million, which surpassed consensus expectations. The gross margin is anticipated to improve slightly to between 57.6% and 57.7%, influenced by a favorable in-store sales mix and reduced promotional activities due to lower inventory levels. Additionally, capital expenditures are expected to rise to between $16 million and $18 million, indicating the company’s commitment to growth with the introduction of a new store for Princess Polly in Australia.

a.k.a. Brands Holding Corp has experienced declining trends in key financial metrics, with an adjusted EBITDA margin falling to 4.8%, down 70 basis points from the previous year, and matching consensus estimates. Sales in the U.S. segment, which constitutes 66% of total net sales, decreased by 3.6% year-over-year, a significant deceleration from the previous quarter's growth rate of 13.7%. Additionally, the company's outlook for fiscal year 2025 has been revised downward, with adjusted EBITDA expectations now at $23.3 million, a decline from the previously projected $26.9 million, reflecting mounting pressures on profitability and growth prospects.