a.k.a. Brands Reports Q1 2025 Financial Results with Improved Net Loss and Increased Sales

a.k.a. Brands Holding Corp. reported its financial results for the first quarter of 2025, revealing a net loss of $8.35 million, a slight improvement from a net loss of $8.93 million in the same period last year. The company generated net sales of $128.66 million, marking a 10% increase from $116.84 million in the first quarter of 2024. This growth was primarily driven by a 9% increase in the number of orders processed and a 1% rise in average order value, which reached $78. The gross profit for the quarter was $73.66 million, resulting in a gross margin of 57.2%, up from 56.2% in the prior year.

Operating expenses increased to $79.04 million from $71.77 million, with selling expenses rising by 12% due to the opening of new stores and increased sales. General and administrative expenses also saw a 13% increase, attributed to higher wages and legal costs. Despite the rise in expenses, the company reported a loss from operations of $5.38 million, an improvement from the $6.09 million loss in the previous year. The total other expense, which includes interest, was $2.96 million, slightly higher than the $2.82 million reported in the prior year.

In terms of operational metrics, a.k.a. Brands reported an increase in active customers to 4.13 million, up from 3.83 million a year earlier. The company also noted a significant improvement in cash flow, with net cash used in operating activities decreasing to $1.88 million from $7.69 million in the same quarter of 2024. The company’s cash and cash equivalents stood at $26.68 million as of March 31, 2025, compared to $24.19 million at the end of 2024.

Strategically, a.k.a. Brands continues to focus on expanding its market presence and enhancing brand awareness, particularly among Millennial and Gen Z consumers. The company operates several fashion brands, including Princess Polly and Culture Kings, and aims to leverage its operational synergies to accelerate growth. The company has also been investing in its infrastructure, including new store openings and improvements in logistics and fulfillment capabilities.

Looking ahead, a.k.a. Brands remains cautious about the macroeconomic environment, which could impact consumer spending. The company is actively evaluating its supply chain strategies in light of increased tariffs on imported goods from China. While the company is optimistic about its growth trajectory, it acknowledges the potential risks associated with market conditions and consumer preferences. The management believes that its current cash position, along with anticipated cash flows from operations, will be sufficient to meet its financial needs over the next 12 months.