a.k.a. Brands Q4 Net Sales Up 3.1% to $164M with 50% U.S. Sourcing Outside China
Fourth-quarter net sales rose 3.1% to $164 million, while fiscal 2025 net sales grew 4.4% to $600 million with U.S. sales up 7% to $394 million. Supply chain restructuring delivered 30 basis points of gross margin expansion to 57.3% despite 100 basis points of tariff headwinds and cut inventory 10%.
1. Fourth-Quarter Sales and Margins
In Q4, a.k.a. Brands delivered $164 million in net sales, up 3.1% year-over-year, with gross margin of 55.6% down 30 basis points due to out-of-stock issues in key styles and tariff pressures. Selling expenses were $51 million (31% of net sales) and adjusted EBITDA was $2.5 million (1.5%).
2. Fiscal 2025 Performance
For fiscal 2025, net sales rose 4.4% to $600 million, led by a 7% increase in the U.S. to $394 million (66% of sales) and a 25% two-year stack gain. Adjusted EBITDA for the year was $19.7 million (3.3%), down from $23.3 million (4.1%) a year earlier due to tariffs and inventory disruptions.
3. Supply Chain and Inventory Management
The company completed a structural supply chain transformation, sourcing 50% of U.S. product outside China, and exited the year with inventory down 10% year-over-year, reflecting disciplined management and a test-and-repeat merchandising approach.
4. Brand Expansion and Channel Strategy
Brand initiatives included opening seven new U.S. Princess Polly stores and one in Australia, expanding wholesale partnerships, and strengthening streetwear segment operations with Culture Kings relocations and in-house brand investments to support future growth.