The increase was driven by a 4.2 per cent rise in the number of orders, partially offset by a 1.3 per cent decline in average order value. Active customers grew 3.1 per cent on a trailing twelve-month basis.
“We delivered a solid start to the year that marks a meaningful inflection point in our journey,” said Ciaran Long, CEO of a.k.a. Brands. “Over the past three years, we have fundamentally repositioned the business to improve profitability and durability. We’ve expanded distribution across stores, wholesale, and marketplace, strengthened our operational foundation, and instilled greater financial discipline across the business.”
a.k.a. Brands’ Q1 2026 net sales rose 3 per cent to $132.5 million, driven by higher orders and active customer growth.
Net loss narrowed to $7.1 million, while adjusted EBITDA nearly doubled to $5.1 million.
Gross margin improved on inventory discipline and full-price selling.
The company maintained FY26 sales guidance and raised its adjusted EBITDA outlook.
Gross margin expands on inventory discipline
The net loss narrowed to $7.1 million, or $0.66 per share, in Q1 2026, compared with a net loss of $8.4 million, or $0.78 per share, a year earlier. Adjusted EBITDA rose to $5.1 million, or 3.9 per cent of net sales, from $2.7 million, or 2.1 per cent of net sales, in the first quarter of 2025, the company said in a press release.
The gross margin expanded to 63.1 per cent from 57.2 per cent in the corresponding quarter last year. Adjusted gross margin increased by 180 basis points to 59 per cent, supported by an improved inventory position, stronger full-price selling and the benefit of the IEEPA tariff adjustment. These gains were partly offset by a $12 million write-off of streetwear inventory linked to the company’s transition to its test-and-repeat model, as well as other tariff-related charges.
Selling expenses increased to $41 million from $38.2 million, mainly due to higher store selling expenses as the company expanded its retail footprint. Marketing expenses rose to $16.8 million from $15.2 million, while general and administrative expenses increased to $30 million from $25.7 million.
Long said the first-quarter results showed that the company’s strategic work was translating into its financial performance. He added that, excluding one-time adjustments, gross margin expanded materially year-on-year, driven by improved inventory discipline, stronger full-price sell-through and the continued rollout of the test-and-repeat model.
The company said its brands continued to make progress across strategic priorities during the quarter. Princess Polly remains on track with its retail expansion, with 17 US stores and two Australian stores expected to be open by the end of the year, along with a pop-up store at The Grove in Los Angeles later this month. Petal & Pup built wholesale momentum across an expanding base of retail partners, while Culture Kings’ investment in its in-house brand portfolio supported improved gross margin and full-price mix.
a.k.a. Brands raises EBITDA outlook
For fiscal 2026, a.k.a. Brands maintained its net sales outlook at $625-635 million, while raising its adjusted EBITDA guidance to $30–32 million from the earlier range of $27-29 million. Capital expenditure is expected at $18-20 million. For the second quarter (Q2) of 2026, the company expects net sales of $160–164 million and adjusted EBITDA of $8.5-9 million.
Fibre2Fashion News Desk (SG)
