a.k.a. Brands Q4 Sales Up 3.1% to $164M, Opens Eight Princess Polly Stores
a.k.a. Brands reported Q4 net sales of $164 million, up 3.1%, but net loss widened to $14.5 million (-$1.35 per share) and adjusted EBITDA dropped to $2.5 million (1.5% margin). Company cut inventory by 10%, opened eight new Princess Polly U.S. stores and expects mid-single-digit sales growth in early 2026.
1. Fourth Quarter Financial Results
In the quarter ended December 31, 2025, a.k.a. Brands net sales rose 3.1% to $164.0 million, driven by a 5.3% increase in U.S. sales. Gross margin held near 55.6%, while the net loss widened to $14.5 million (-$1.35 per share) and adjusted EBITDA fell to $2.5 million (1.5% of sales).
2. Full Year 2025 Highlights
For the full year, net sales climbed 4.4% to $600.2 million on a constant currency basis, including a 7% two-year U.S. sales gain. Net loss widened to $31.4 million (-$2.93 per share) and adjusted EBITDA reached $19.7 million (3.3% of net sales), down from 4.1% in 2024.
3. Retail Expansion and Inventory Management
During 2025, the company diversified its supply chain and reduced inventory by 10% to improve turns. It also executed leases for eight new Princess Polly stores across the U.S., expanding its direct-to-consumer footprint to drive brand visibility and sales.
4. 2026 Outlook
Entering 2026, a.k.a. Brands targets mid-single-digit net sales growth, plans additional store openings and strategic wholesale partnerships. It is also embedding AI-driven tools to accelerate product development, streamline operations and support margin expansion throughout the year.