In the US market, net sales grew by 14.2 per cent YoY. The company reported a net loss of $8.4 million, or $0.78 per share, compared to a net loss of $8.9 million, or $0.85 per share, in Q1 2024. Adjusted EBITDA improved to $2.7 million, up from $0.9 million YoY.
In Q1 2025, gross margin improved to 57.2 per cent, primarily due to increased full price selling and a better inventory position, partially offset by expanding wholesale efforts. Selling expenses rose to $38.2 million from $34.2 million, accounting for 29.7 per cent of net sales, driven by new store openings.
US’ a.k.a Brands has reported a 10.1 per cent YoY rise in Q1 2025 net sales to $128.7 million, driven by strong US growth and improved margins.
Adjusted EBITDA rose to $2.7 million.
The company opened its strongest Princess Polly store yet in Soho and plans six more openings in 2025.
Full-year guidance projects $600–$610 million in net sales.
CEO Long highlighted strong demand and strategic execution.
General and administrative expenses increased to $25.7 million from $22.7 million, representing 20 per cent of net sales, largely due to higher wages and incentive compensation. Adjusted EBITDA rose to $2.7 million or 2.1 per cent of net sales.
During the quarter, Princess Polly opened its seventh store in Soho, marking the company’s strongest store launch to date. Plans are underway to open six more stores in 2025, aiming for a total of 13 by year-end. The current store network continues to exceed revenue expectations and is positively impacting nearby online sales. Additionally, early performance indicators from the wholesale debuts of Princess Polly and Petal & Pup across Nordstrom’s entire store fleet have been encouraging, a.k.a Brands said in a press release.
“We delivered a strong start to the year, with outstanding first-quarter performance driven by our team’s disciplined execution across our brands. This marks our fourth consecutive quarter of growth, underscoring the effectiveness of our strategic initiatives. We grew net sales approximately 10 per cent to $129 million, with continued strength in the US which grew 14 per cent,” said Ciaran Long, chief executive officer (CEO) at a.k.a Brands Holding. “Importantly, the Australia and New Zealand region registered 6 per cent net sales growth in the quarter, reflecting the progress we have made over the past two years, particularly at the Culture Kings brand, to strengthen the business. And rounding out the quarter, benefiting from the strong top-line growth and healthy gross margin, we exceeded our expectations and delivered $2.7 million of adjusted EBITDA.”
“We continued to deepen customer engagement in the first quarter, achieving nearly 8 per cent growth in our active customer base over the trailing twelve months, a clear indication of the strong demand for our brands. Our omnichannel expansion plans are also on-track and exceeding expectations,” added Long.
For the second quarter (Q2) of 2025, the company expects net sales to range between $154 million and $158 million, with adjusted EBITDA projected between $7 million and $8 million, based on a weighted average diluted share count of 10.7 million.
For the full fiscal 2025 (FY25), a.k.a Brands anticipates net sales between $600 million and $610 million and adjusted EBITDA in the range of $24 million to $27.5 million. The outlook also includes capital expenditures (capex) of approximately $12 million to $14 million and assumes a weighted average diluted share count of 10.8 million. These projections factor in the estimated impact of tariffs enacted during 2025.
“As we approach the evolving trade environment impacting our US business, we are confident that our strategic actions, swift execution and flexible business model will enable us to navigate this period and emerge even stronger. Importantly, we continue to see solid demand trends in the first six weeks of the second quarter, in-line with our outlook for the year. We are committed to building durable fashion brands for the long-term, and we believe the power of our operating model and the actions we’re taking will enhance our agility, resilience and long-term competitiveness,” concluded Long.
Fibre2Fashion News Desk (SG)