a.k.a. Brands (AKA) 2024 Annual Gateway Conference summary

Financial performance and growth

• Net sales increased 9.5% year over year in Q2 2024, with adjusted EBITDA up 44% for the same period.

• US market sales grew 19% and now represent 65% of total business, highlighting significant expansion potential.

• Gross margins improved, and inventory management remains a focus, with inventory dollars expected to decrease in the second half of the year.

• $50 million in debt was paid down last year, with continued deleveraging planned.

• Revenue guidance for 2024 was raised to $560–$565 million, with a focus on EBITDA growth.

Brand portfolio and differentiation

• Operates four brands: Princess Polly and Petal & Pup (women), Culture Kings and MNML (men), each targeting distinct demographics.

• Princess Polly is expanding its retail footprint, with five new stores planned this year and more in the pipeline.

• Culture Kings leverages experiential retail, including unique store features and exclusive collaborations.

• MNML offers aspirational streetwear at accessible prices and is a top performer in the Las Vegas Culture Kings store.

• Petal & Pup is growing through omni-channel partnerships, with strong performance on Nordstrom, Macy's, and Target.

Operational strategy and innovation

• Employs a test-and-repeat model: launches hundreds of new styles weekly in small quantities, replenishing successful items quickly.

• Proprietary product focus and consistent sizing drive strong gross margins and industry-leading return rates (~20%).

• Marketing is driven by thousands of micro-influencers, providing authenticity and better ROI.

• All brands operate on Shopify, enabling agility, capital efficiency, and rapid adoption of best-in-class technology.

• Omni-channel expansion is a priority, with D2C as the core but growing presence in physical retail and third-party platforms.