a.k.a. Brands Q3 net sale drop, lowers forecast due to tariff concerns

a.k.a. Brands Holding Corp., a portfolio manager of fashion brands, announced financial results for the third quarter ended September 30, 2025, reporting adjusted EBITDA of 7 million dollars, supported by stronger gross margins and disciplined execution.

Despite the positive profitability measure, net sales for the quarter saw a minor decline of 1.9 percent to 147.1 million dollars, which CEO Ciaran Long attributed to "temporary disruptions to in-stock levels and fashion newness" that limited the company's ability to fully meet customer demand.

While the quarter saw a net loss of 5 million dollars, the company made meaningful progress on strategic priorities, including opening the 11th Princess Polly store, expanding wholesale partnerships, and successfully refinancing its debt. Long also noted that inventory levels have since improved, with fourth quarter-to-date net sales tracking up low single digits, positioning the company to drive sustainable, profitable growth over the long term.

However, contemplating the potential impact of tariffs during 2025, the company has lowered its full-year outlook. a.k.a. Brands now expects now expects net sales in the range of 598 to 602 million dollars, and adjusted EBITDA between 23 to 23.5 million dollars versus 608 to 612 million dollars and 24.5 to 27.5 million dollars, respectively.