Fashion
US’ a.k.a. Brands FY25 revenue rises 4.4% to $600.2 mn
Despite revenue growth, the company posted a net loss of $31.4 million in FY25, compared with a loss of $26 million in FY24. Adjusted EBITDA stood at $19.7 million, or 3.3 per cent of net sales, down from $23.3 million in the previous year, a.k.a. Brands said in a press release.
a.k.a. Brands has reported net sales of $600.2 million in FY25, up 4.4 per cent YoY, driven by US retail expansion and DTC growth.
However, net loss widened to $31.4 million, while adjusted EBITDA declined to $19.7 million.
The company opened new Princess Polly stores, reduced inventory and improved cash flow.
It expects FY26 sales of $625-635 million with stronger profitability.
“We are pleased with the progress we made in 2025 as we continued to execute against our strategic priorities and strengthen the foundation of the business,” said Ciaran Long, chief executive officer of a.k.a. Brands adding, “We delivered another year of growth, with net sales increasing 4.4 per cent to $600 million, including 7 per cent growth in the US, which is now up 25 per cent on a two-year stack. During the year, we diversified our supply chain, reduced inventory by 10 per cent, opened eight new Princess Polly stores and continued to invest in our brands. Importantly, we expanded gross margin by 30 basis points despite a dynamic trade environment.”
The company also announced that it has executed eight new Princess Polly store leases across the United States, with additional retail locations expected to be announced during the year as part of its omnichannel expansion strategy.
Operating expenses rose in the fourth quarter as the company increased its retail footprint and faced higher administrative costs. Selling expenses reached $51 million, accounting for 31.1 per cent of net sales, compared with 28 per cent YoY. Marketing expenses declined to $20.5 million, representing 12.5 per cent of net sales, reflecting more efficient marketing investments. General and administrative expenses increased to $30.3 million, partly due to non-routine legal matters.
Meanwhile, the company recorded fourth quarter (Q4) net sales of $164 million, rising 3.1 per cent YoY. The net loss widened to $14.5 million, compared with $9.4 million a year earlier, while adjusted EBITDA declined to $2.5 million from $6.2 million. Gross margin in Q4 stood at 55.6 per cent, slightly lower than 55.9 per cent in the same period of 2024 due to temporary out-of-stock issues in popular styles during October linked to supply-chain adjustments.
The company ended the quarter with $20.3 million in cash and cash equivalents, while inventory declined to $86.2 million, down from $95.8 million a year earlier. Total debt stood at $111.1 million, largely unchanged from the previous year.
Cash flow from operations improved significantly to $16.4 million in 2025, compared with $0.7 million in 2024, driven mainly by stronger inventory sell-through.
Looking ahead, a.k.a. Brands expects fiscal 2026 net sales between $625 million and $635 million, with adjusted EBITDA projected between $27 million and $29 million. For the first quarter (Q1) of 2026, the company forecasts net sales of $130 million to $132 million and adjusted EBITDA of $1.5 million to $2 million.
“We enter 2026 from a position of strength, with growing momentum across the brands and mid-single-digit net sales growth quarter to date,” noted Long adding, “We remain focused on driving direct-to-consumer growth through exclusive, trend-right product and disciplined marketing. We see significant opportunity to expand our reach through targeted retail growth, including the new Princess Polly stores announced today, as well as strategic wholesale partnerships. At the same time, we are simplifying the business and embedding AI-driven tools to move faster, operate more efficiently and support margin expansion. We believe 2026 represents an inflection point for the company, and we are confident in our ability to deliver sustainable growth, expand adjusted EBITDA and create long-term shareholder value.”
Fibre2Fashion News Desk (SG)