a.k.a. Brands Holding Corp. AKA continues to showcase resilience and innovation in a competitive retail environment. The company recently announced its preliminary results for the fourth quarter of 2024, indicating strong performance, strategic execution and growth potential.
The company highlighted the accelerating momentum of its direct-to-consumer and omnichannel strategies, particularly with Petal & Pup's successful expansion into 40 Nordstrom stores in the Fall season and its upcoming presence in all Nordstrom locations by Spring.
Meanwhile, Princess Polly advanced its retail footprint with two new store openings in California during the fourth quarter and is set to unveil the brand’s first New York City location early this year. These key milestones, alongside ongoing strategic initiatives, position a.k.a. Brands for continued growth and long-term value creation.
Shares of a.k.a. Brands have increased 3% in the past six months compared with the industry’s growth of 18.8%.
AKA Stock's Past Six Month Performance
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a.k.a. Brands’ Strong Q4 Preliminary Results
a.k.a. Brands’ preliminary results for the quarter ending Dec. 31, 2024, show total revenues of approximately $159 million, indicating a 6.8% increase year over year compared with $148.9 million in the fourth quarter of 2023. The result shows U.S. net sales of around $96.1 million, reflecting robust 21.6% growth from $79.1 million in the same period last year.
The company’s preliminary adjusted EBITDA for the fourth quarter is expected to be between $6 million and $6.2 million, a significant increase from $1.3 million in the fourth quarter of 2023.
a.k.a. Brands’ Full-Year Metrics
For fiscal 2024, a.k.a. Brands’ preliminary revenues were $574.7 million, indicating a 5.2% year-over-year increase from $546.3 million in fiscal 2023. This performance surpassed the previous guidance of $567 million to $572 million. U.S. net sales reached approximately $368.8 million, up 16.9% from $315.5 million in fiscal 2023.
Adjusted EBITDA for the full year is now expected to be between $23 million and $23.2 million, marking a notable increase from $13.8 million in fiscal 2023 and surpassing the prior prediction of $22 million to $23 million.
AKA’s Strategic Pillars Driving Growth & Engagement
a.k.a. Brands’ strategy is built around three core pillars, attracting new and retaining existing customers, showing up for customers wherever they choose to shop and optimizing operations for financial efficiency. Central to this approach is the company’s use of a test-and-repeat merchandising model, which enables its brands to consistently introduce fresh and relevant styles. This keeps customers engaged, builds loyalty and ensures continuous growth.
In addition to strengthening its online presence, a.k.a. Brands is expanding into experiential retail stores, wholesale partnerships and marketplaces, further broadening the company’s reach. This multi-channel growth not only enhances brand visibility but also allows the company to introduce its successful, direct-to-consumer brands to new audiences, reinforcing AKA’s position in the market.
AKA’s Investment Analysis
Given its solid fourth-quarter and fiscal 2024 performance, and focus on U.S. expansion and multi-channel growth, a.k.a. Brands remains a strong market contender. With its ongoing investments in retail and operational efficiencies, the company is poised for continued success. Currently, a.k.a. Brands carries a Zacks Rank #2 (Buy).
Other Three Solid Picks
Abercrombie & Fitch Co. ANF operates as an omnichannel retailer that offers an assortment of apparel, personal care products and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks brands. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings indicates growth of 15.1% and 69.4%, respectively, from the previous year’s reported number. ANF delivered a trailing four-quarter average earnings surprise of 14.8%.
The Gap, Inc. GAP operates as an apparel retail company that offers apparel, accessories and personal care products for men, women and children under the Old Navy, Gap, Banana Republic and Athleta brands. The company currently sports a Zacks Rank #1. GAP delivered a trailing four-quarter average earnings surprise of 101.2%.
The Zacks Consensus Estimate for Gap’s current fiscal-year sales and earnings indicates growth of 0.8% and 41.3%, respectively, from the previous year’s reported figures.
Deckers Outdoor Corporation DECK designs, markets and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities in the United States and internationally. It currently sports a Zacks Rank #1. DECK delivered a trailing four-quarter average earnings surprise of 41.1%.
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings indicates growth of 13.9% and 14.2%, respectively, from the previous year’s reported figures.
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