A.k.a. Brands Q3 net sales up 9.7 percent, net loss widens

US fashion group a.k.a. Brands reported net sales of 161.3 million dollars for the third quarter ended September 30, 2026, an increase of 9.7 percent compared to 147.1 million dollars in the third quarter of 2025.

Constant-currency sales rose 7.6 percent, driven by a 12.8 percent increase in order volume across its brand portfolio. Net loss widened to 7.7 million dollars, or 0.70 dollars per share, compared to a net loss of 5 million dollars, or 0.46 dollars per share, in the prior-year period.

Adjusted EBITDA reached 8.2 million dollars, representing 5.1 percent of net sales, up from 7 million dollars, or 4.8 percent of net sales, in the third quarter of 2025.

International expansion

Gross margin expanded 100 basis points to 60.1 percent, up from 59.1 percent in the prior year, primarily supported by full-price selling in streetwear brands like Australian-founded streetwear retailer Culture Kings, despite higher inbound freight costs.

Chief executive officer of a.k.a. Brands, Ciaran Long, said: “Our third quarter results reflect strong execution against our strategic plan and demonstrate that the structural improvements we have made are driving growth and profitability.”

“Net sales grew 9.7% and adjusted EBITDA increased nearly 17%, marking our third consecutive quarter of double-digit adjusted EBITDA growth,” Long added, noting that total debt was reduced by 8.5% year-over-year (YoY).

The US represented the strongest performance with net sales up 14 percent, while rest-of-world sales climbed 79 percent, bolstered by direct-to-consumer (D2C) label Princess Polly expanding in the UK.

Store footprint and fiscal year guidance

Princess Polly concluded the quarter with 15 US brick and mortar locations and plans to open at least six additional stores in 2027. Brand Petal & Pup strengthened its retail distribution pipeline, and Culture Kings is set to expand its retail footprint into Puerto Rico.

For the full year ending December 31, 2026, a.k.a. Brands updated its net sales outlook to between 626 million and 632 million dollars, narrowing its prior range of 625 million to 635 million dollars. Adjusted EBITDA is projected between 29 million and 30 million dollars, down from the earlier guidance of 30 million to 32 million dollars, with capital expenditures forecasted between 16 million and 17 million dollars.

For the fourth quarter of 2026, the company expects net sales between 172 million and 178 million dollars, with adjusted EBITDA anticipated between 7 million and 8 million dollars.