A.K.A. Brands Holding Corp., which bills its business as a “portfolio of next-generation fashion brands,” is reporting that net sales for the second quarter decreased 0.3 percent year-over-year (y/y) to $160.1 million, compared to $160.5 million in the second quarter of 2025. The decrease was said to be driven by a 0.5 percent decrease in the number of orders.

Net sales decreased 5.3 percent y/y on a constant-currency (CC) basis.

The company’s portfolio of brands includes Culture Kings, Princess Polly, Petal and Pup, and MNML.

Profitability & Expenses
Gross margin for the quarter was 61.1 percent of net sales, compared to 57.5 percent in Q2 2025. The increase in gross margin was said to be primarily driven by lower tariff rates and the improved full price selling on our streetwear brands.

Selling expenses were $47.8 million, or 29.9 percent of net sales, in Q2, compared to $45.4 million, or 28.3 percent of net sales, in Q2 2025. The increase was said to be primarily driven by an increase in store selling expenses as our retail footprint expands.

Marketing expenses were $21.4 million, or 13.3 percent of net sales, in the 2026 Q2 period, compared to $19.9 million, or 12.4 percent of net sales, in the 2025 Q2 period.

General and administrative (G&A) expenses were reported at $27.5 million, or 17.2 percent of net sales, in Q2, compared to $27.5 million, or 17.1 percent of net sales, in the second quarter of 2025.

Adjusted EBITDA was $8.7 million, or 5.5 percent of net sales, in Q2, compared to $7.5 million, or 4.7 percent of net sales, in the second quarter of 2025.

Balance Sheet and Cash Flow Summary
Cash and cash equivalents at the end of the second quarter totaled $21.1 million, compared to $20.3 million at the end of fiscal year 2025.

Inventory at the end of the second quarter totaled $79.9 million, compared to $86.2 million at the end of fiscal year 2025 and $92.5 million at the end of the second quarter of 2025.

Debt at the end of the second quarter totaled $99.9 million, compared to $111.1 million at the end of fiscal year 2025 and $108.7 million at the end of the second quarter of 2025.

Cash flow provided by operations for the six months ended June 30, 2026 was $18.7 million, compared to cash
flow provided by operations of $10.0 million for the six months ended June 30, 2025.

Stores

  • Princess Polly is planning a minimum of 100 U.S. stores long term.
  • Culture Kings signed a Puerto Rico store lease and nears agreement on new store in major U.S. market.

Outlook
The company provided the following guidance for the full year ending December 31, 2026 and the third quarter ending September 30, 2026:


Image courtesy Culture Kings, A.K.A. Brands Holding Corp.