American fashion retailer a.k.a. Brands Holding Corp has announced its financial results for the third quarter (Q3) of fiscal 2025 (FY25) ended September 30, with net sales reaching $147.1 million, down 1.9 per cent year-over-year (YoY), or 2.7 per cent lower on a constant currency basis. The gross margin improved to 59.1 per cent from 58 per cent last year, driven by a higher mix of retail-store sales, reduced promotional activity, and a duty-drawback benefit.

The decline in revenue was attributed mainly to a 3.7 per cent drop in average order value, caused by temporary supply chain disruptions that limited in-stock levels, partially offset by a 2.2 per cent rise in order volume, led by growth in Australia and New Zealand.

a.k.a. Brands Holding Corp has reported net sales of $147.1 million in Q3 FY25, down 1.9 per cent year-on-year, while gross margin improved to 59.1 per cent.
Net loss narrowed to $5 million, with adjusted EBITDA at $7 million.
For the nine months, sales reached $436.3 million, with a net loss of $16.9 million.
FY25 sales guidance was revised to $598–602 million.

However, the net loss narrowed slightly to $5 million, or $0.46 per share. Adjusted EBITDA came in at $7 million, representing 4.8 per cent of net sales. Selling expenses rose to $43.2 million (29.4 per cent of sales) from $41.9 million (27.9 per cent of sales), primarily due to expanding the company’s retail footprint, a.k.a. Brands Holding said in a press release.

Marketing expenses fell to $18.5 million (12.6 per cent of sales), reflecting tighter spending efficiency compared to $19.3 million (12.9 per cent of sales) last year. General and administrative expenses declined to $26.7 million (18.1 per cent of sales), showcasing ongoing cost optimisation.

“We made meaningful progress on our strategic priorities in the third quarter,” said Ciaran Long, chief executive officer (CEO) at a.k.a. Brands. “We opened Princess Polly’s 11^th store at The Westchester Mall, expanded wholesale partnerships, and successfully refinanced our debt, further strengthening our financial position. We also advanced the optimisation of our sourcing structure, which will enhance resilience and flexibility across our operations.”

“I am proud of the progress our teams have made advancing our strategic initiatives, positioning us to drive sustainable, profitable growth over the long term,” added Long.

The inventory for the quarter was $96.7 million, marginally up from $95.8 million at FY-end but below the $106 million level recorded in Q3 2024. Debt totalled $111.3 million, nearly flat compared to $111.7 million at FY24-end.

For the first nine months (9M) of FY25, a.k.a. Brands reported net sales of $436.3 million. The gross profit rose to $253 million supported by improved gross margins. Operating expenses increased to $260.3 million. As a result, the company recorded a loss from operations of $7.3 million. The net loss for the 9M period stood at $16.9 million, or $1.58 per share.

As of September 30, 2025, cash and cash equivalents stood at $23.4 million, compared to $24.2 million at the end of FY24.

The operating cash flow for the 9M improved sharply to $14.7 million, reversing a cash outflow of $6.3 million in the prior-year period, reflecting stronger working capital management and operational discipline.

The company expects net sales between $598 million and $602 million for FY25, down from the prior range of $608 million to $612 million due to tariffs introduced during 2025. Adjusted EBITDA between $23 million and $23.5 million, versus the earlier guidance of $24.5 million to $27.5 million. Capital expenditures between $16 million and $18 million, reflecting ongoing investment in physical retail expansion and infrastructure.

Fibre2Fashion News Desk (SG)