US’ a.k.a. Brands Q2 net loss narrows as gross margin improves
The company’s net sales were broadly stable at $160.1 million, compared with $160.5 million in Q2 2025.
US’ a.k.a. Brands reported a sharp improvement in profitability in the second quarter of fiscal year 2026, with net loss narrowing to $0.2 million and gross margin rising to 61.1 per cent.
Growth was supported by broader distribution, stronger full-price selling and improving momentum across key markets, while the company expects FY26 net sales of $625–$635 million.
Commenting on the results, Ciaran Long, CEO of a.k.a. Brands, said the second-quarter performance highlighted the company’s progress in repositioning the business for sustainable, profitable growth. He attributed the momentum to broader distribution, improved operational capabilities and prudent financial management.
The company attributed the margin improvement primarily to lower tariff rates and stronger full-price selling across its streetwear brands.
Gross margin expands as profitability improves
The gross profit margin increased 360 basis points (bps) to 61.1 per cent in Q2 FY26. Selling expenses rose to $47.8 million from $45.4 million a year earlier, while marketing expenses increased to $21.4 million from $19.9 million. General and administrative (G&A) expenses remained unchanged at $27.5 million.
The company said the increase in selling expenses was primarily driven by higher store selling costs as its retail footprint expanded.
It also reported growth in the US and rest of world, while continued omnichannel expansion and tighter financial discipline supported its broader growth strategy, a.k.a. Brands said in a press release.
US and international markets support growth
a.k.a. Brands reported 2 per cent growth in net sales in the US and more than 50 per cent growth in rest of world during the quarter. ANZ performance was pressured by a challenging macroeconomic environment and a difficult year-on-year (YoY) comparison following the clearance of non-go-forward goods.
However, the company said quarter-to-date momentum had accelerated across all regions, with overall net sales growth reaching the high-single-digits alongside healthy margins.
Brands expand distribution as FY26 outlook remains positive
Princess Polly’s Grove pop-up exceeded expectations, while the brand remains on track to open four new US stores by year-end and up to 10 additional stores in 2027. The company said Princess Polly has a long-term opportunity to operate at least 100 stores in the US.
The brand’s new UK distribution centre is also aimed at improving customer experience and supporting growth in the UK and other international markets. Petal & Pup continued expanding its lifestyle assortment through additional specialty wholesale partners.
Meanwhile, streetwear brands led by Culture Kings announced plans to open their first US store since 2022. Culture Kings’ shift towards a full-price, test-and-repeat model also contributed to the group’s margin improvement.
Going forward, a.k.a. Brands expects net sales for FY26, ending December 31, 2026, to range between $625 million and $635 million.
For the third quarter (Q3) ending September 30, 2026, the company expects net sales of $160 million to $164 million.
Fibre2Fashion News Desk (CG)