Net sales rose 9.7 per cent year on year (YoY) to $161.3 million in the third quarter ended September 30, 2026, or 7.6 per cent on a constant-currency basis. Gross profit increased to $96.9 million from $87.0 million, lifting gross margin by 100 basis points to 60.1 per cent. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased to $8.2 million from $7.0 million, with the margin improving to 5.1 per cent from 4.8 per cent. However, net loss widened to $7.7 million from $5.0 million, while diluted loss per share increased to $0.70 from $0.46.
a.k.a. Brands posted third-quarter net sales of $161.3 million, up 9.7 per cent YoY, as US sales advanced 14 per cent and gross margin widened to 60.1 per cent.
Adjusted EBITDA rose nearly 17 per cent to $8.2 million, although the fashion group’s net loss widened to $7.7 million.
The company narrowed its FY26 sales outlook and reduced its adjusted EBITDA and capital expenditure guidance.
“Our third quarter results reflect strong execution against our strategic plan and demonstrate that the structural improvements we have made are driving growth and profitability,” said Ciaran Long, chief executive officer, a.k.a. Brands.
“The US, our largest market, led our performance with net sales up 14 per cent, its first quarter of double-digit growth since we transformed our sourcing network last year,” said Long.
US and rest of world drive regional sales
US net sales increased 14 per cent YoY to $112.6 million. Sales in Australia and New Zealand declined 6.7 per cent to $41.2 million, while rest of world sales surged 78.9 per cent to $7.6 million, led by Princess Polly’s growth in the UK, a.k.a. Brands said in its financial release.
The company had 4.43 million active customers at the end of the trailing 12-month period, up 8.8 per cent YoY. Orders rose 12.8 per cent to 2.12 million, while average order value declined to $76 from $78.
Margins expand despite higher distribution costs
Improved full-price selling at the company’s streetwear brands supported gross-margin expansion, partly offset by higher inbound freight costs. Selling expenses rose to $52.3 million, or 32.4 per cent of net sales, from $43.2 million, or 29.4 per cent, primarily due to $5.3 million in one-time costs related to relocating its distribution centre to Ohio.
Marketing expenditure increased to $21.1 million from $18.5 million, while general and administrative expenses rose to $27.7 million from $26.7 million. The operating loss widened to $4.1 million from $1.4 million.
Cash and cash equivalents stood at $15.6 million at September 30, compared with $20.3 million at the end of fiscal 2025. Inventory totalled $95.4 million, below $96.7 million a year earlier, while total debt fell 8.5 per cent YoY to $101.9 million.
a.k.a. Brands narrows FY26 outlook
For the year ending December 31, 2026, a.k.a. Brands narrowed its net-sales outlook to $626-632 million from its earlier range of $625-635 million. It reduced its adjusted EBITDA forecast to $29-30 million from $30-32 million and lowered planned capital expenditure to $16-17 million from $18-20 million.
For the fourth quarter, the company expects net sales of $172-178 million and adjusted EBITDA of $7-8 million. Princess Polly ended the quarter with 15 US stores and plans to open at least six additional US locations in 2027, while Culture Kings is due to launch its retail concept in Puerto Rico during the fourth quarter.
Fibre2Fashion News Desk (MS)
