a.k.a. Brands Holding Corp. reported a year-over-year increase in net sales for the fiscal year ending December 31, 2024, reaching $574.7 million, up from $546.3 million in 2023, marking a 5% growth. U.S. net sales saw a more significant rise of 17%, climbing to $368.8 million from $315.5 million. The company also improved its gross margin by 200 basis points to 57%, compared to 55% in the previous year. Notably, a.k.a. Brands reduced its net loss to $26.0 million from $98.9 million, while Adjusted EBITDA increased by 69% to $23.3 million from $13.8 million.
The company experienced operational growth, attracting 4.1 million active customers, a 9% increase from the prior year, and processing approximately 7.3 million orders, up 7% from 2023. The average order value slightly decreased to $79 from $80. Strategic developments included the opening of six new retail locations for Princess Polly in the U.S. and the expansion of wholesale partnerships, with Princess Polly and Petal & Pup launching in 42 and 20 Nordstrom stores, respectively. The company also initiated a share repurchase program, authorizing the buyback of up to $5 million in shares.
In terms of financial health, a.k.a. Brands reported total assets of $385.2 million and total liabilities of $267.6 million as of December 31, 2024. The company’s cash and cash equivalents stood at $24.2 million, with a revolving line of credit and term loan provisions available for liquidity. However, the company also noted a significant goodwill impairment charge of $68.5 million in 2023, attributed to reduced forecasts for the Culture Kings and Petal & Pup reporting units, which impacted the overall financial outlook.
Looking ahead, a.k.a. Brands plans to continue its growth strategy by expanding its omnichannel presence, with plans to open additional stores and enhance its marketing efforts. The company aims to leverage its data-driven merchandising model to adapt to changing consumer preferences and improve customer retention. However, it also faces challenges, including potential economic downturns, competition, and the need to effectively manage inventory and operational costs. The company remains focused on addressing its material weaknesses in internal controls over financial reporting, which it has identified and is actively working to remediate.
About A.K.A. BRANDS HOLDING CORP.
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