a.k.a. Brands Reports 3% Increase in Net Sales to $132.5 Million in Q1 2026

a.k.a. Brands Holding Corp. reported its financial results for the first quarter of 2026, revealing a net sales increase of 3% to $132.5 million, compared to $128.7 million in the same period last year. The company achieved a gross profit of $83.6 million, reflecting a gross margin of 63.1%, up from 57.2% in the prior year. This improvement in gross margin was attributed to better inventory management and a shift towards more full-price selling, alongside a significant $16.5 million benefit from tariff refunds related to previous periods. However, the company also faced a $12 million write-off of streetwear inventory as it transitions to a test-and-repeat model.

Operating expenses rose to $87.7 million, up from $79.0 million in the previous year, driven by increased selling, marketing, and general administrative costs. Selling expenses increased by 7% to $41.0 million, while marketing expenses rose by 10% to $16.8 million. General and administrative expenses saw a notable 17% increase, totaling $30.0 million, primarily due to higher wages and non-routine legal expenses. As a result, the company reported a loss from operations of $4.1 million, an improvement from a loss of $5.4 million in the same quarter of 2025.

The company’s net loss for the quarter was $7.1 million, or $0.66 per share, compared to a net loss of $8.4 million, or $0.78 per share, in the prior year. The reduction in net loss was attributed to improved gross profit margins and lower interest expenses, which decreased to $2.2 million from $2.7 million year-over-year. The company also reported an Adjusted EBITDA of $5.1 million, up from $2.7 million in the same quarter last year, indicating a positive trend in operational efficiency.

In terms of operational metrics, a.k.a. Brands reported an increase in active customers to 4.26 million, up from 4.13 million in the previous year. The average order value slightly decreased to $77 from $78, while the number of orders processed increased by 4%. The company continues to focus on expanding its market presence, particularly in the U.S. and Australia, where it generated $90.8 million and $36.9 million in sales, respectively.

Looking ahead, a.k.a. Brands remains cautious about the macroeconomic environment, which could impact consumer spending. The company plans to continue investing in its operations, including enhancing its marketing efforts and expanding its product offerings. Additionally, it is addressing material weaknesses in its internal controls over financial reporting, which it has identified and is actively working to remediate. The company believes that its existing cash, along with cash generated from operations and available borrowing capacity, will be sufficient to meet its anticipated cash needs for the next 12 months.