a.k.a. Brands quarterly losses widen despite uptick in FY25 sales

a.k.a. Brands Holding Corp. has reported revenue growth for both the fourth quarter and full fiscal year 2025, supported by continued momentum in the US and expansion of its physical retail footprint.

For the quarter ended December 31, 2025, the company recorded net sales of 164 million dollars, representing an increase of 3.1 percent compared to 159 million dollars in the same period of 2024, or 2.8 percent on a constant currency basis.

Sales growth was particularly strong in the US market, where net sales rose 5.3 percent year-over-year. Despite the revenue increase, the group posted a net loss of 14.5 million dollars, or 1.35 dollars per share, widening from a loss of 9.4 million dollars, or 0.88 dollars per share, reported in the fourth quarter of the prior year.

Adjusted EBITDA for the quarter came in at 2.5 million dollars, equivalent to 1.5 percent of net sales, compared to 6.2 million dollars, or 3.9 percent of net sales, a year earlier.

Gross margin for the quarter was 55.6 percent, slightly down from 55.9 percent in the same period last year. The company attributed the decline to stock shortages in key best-selling styles during October as it transitioned its supply chain.

FY25 revenue growth driven by US performance

For the full fiscal year, a.k.a. Brands reported net sales of 600.2 million dollars, representing growth of 4.4 percent compared to 574.7 million dollars in 2024, and a 5 percent increase on a constant currency basis.

Net loss for the year totalled 31.4 million dollars, or 2.93 dollars per share, compared to a net loss of 26 million dollars, or 2.46 dollars per share, in the previous year.

Adjusted EBITDA reached 19.7 million dollars, equivalent to 3.3 percent of net sales, down from 23.3 million dollars, or 4.1 percent of net sales, in fiscal 2024.

According to chief executive officer Ciaran Long, the company delivered growth while strengthening operational foundations.

“We’re pleased with the progress we made in 2025 as we continued to execute against our strategic priorities and strengthen the foundation of the business,” Long said in a statement. “We delivered another year of growth, with net sales increasing 4.4 percent to 600 million dollars, including 7 percent growth in the US.”

Outlook factors in current tariff environment

Looking ahead to fiscal 2026, a.k.a. Brands expects net sales to reach between 625 million and 635 million dollars. Adjusted EBITDA is projected to come in between 27 million and 29 million dollars, with capital expenditures estimated at approximately 18 million to 20 million dollars.

For the first quarter of 2026, the company anticipates net sales of between 130 million and 132 million dollars and adjusted EBITDA of 1.5 million to 2 million dollars.

The guidance reflects tariff rates currently in place following 2025, the company said, and does not account for potential refunds that could arise from the US Supreme Court’s decision to overturn tariffs implemented under the International Emergency Economic Powers Act (IEEPA).