a.k.a. Brands (AKA) Q4 2024 earnings summary

Executive summary

• Achieved $575 million in net sales for 2024, up 5.2% year-over-year, with U.S. net sales growing 17%–16.9% and active customers surpassing 4 million, up 9.4% year-over-year.

• Adjusted EBITDA reached $23.3 million for 2024, a 69% increase year-over-year, with Q4 adjusted EBITDA at $6.2 million.

• Net loss narrowed to $(26.0) million for 2024 and $(9.4) million in Q4, both improved from prior year.

• Expanded omnichannel presence with five new Princess Polly stores in 2024 and seven more planned for 2025, including a flagship in SoHo, NYC.

• Princess Polly and Petal & Pup expanding to all Nordstrom stores nationwide in 2025.

Financial highlights

• Q4 net sales rose 6.8% to $159 million, with U.S. sales up 21.6% and Australia/New Zealand down 9.6% year-over-year.

• Q4 gross margin expanded 460 basis points to 55.9%; adjusted EBITDA was $6.2 million, up from $1.3 million last year.

• Adjusted EBITDA margin increased to 3.9% in Q4 and 4.1% for 2024, up from 0.9% and 2.5% respectively.

• Ended Q4 with $24.2 million in cash, $111.7 million in debt, and $95.8 million in inventory, up 5% year-over-year.

• Operating cash flow for 2024 was $0.7 million, down from $33.4 million in 2023 due to higher inventory.

Outlook and guidance

• 2025 net sales expected at $600–$610 million (4–6% growth; 6–9% ex-FX), with adjusted EBITDA of $27.5–$29.5 million (18–27% growth).

• Q1 2025 net sales projected at $121–$124 million (4–6% growth), adjusted EBITDA at $1.5–$2 million.

• Capital expenditures for 2025 expected at $12–$14 million, mainly for new Princess Polly stores.

• Guidance includes estimated impact of tariffs enacted in early 2025.