A.K.A. Brands – parent company of Australian fashion houses Culture Kings, Princess Polly and Petal & Pup – has reported a softening of sales in Australia and New Zealand for the second quarter of 2025 compared to the first quarter.
The group’s latest trading update shows its AU/NZ sales lifted just 0.1 per cent in Q2 this year compared to the same time last year. This is down from a 6.2 per cent surge in sales for the local region Q1, with that off the back of local revenue declines in 2024 for AU/NZ.
Total AU/NZ sales in Q2 for A.K.A. Brands hit US$45.7 million, up from US$45.6 million in the same time last year. For the first half of 2025, AU/NZ sales hit US$81.3 million, up 2.7 per cent compared to the same time last year.
Meanwhile, the group’s US market, which makes just over double what the AU/NZ market generates, reported a 13.7 per cent revenue lift in the second quarter, and 13.9 per cent for the first half of 2025.
Overall sales for the group in Q2 were up 7.8 per cent, offset by a 19.4 per cent slump in the rest of world sales.
A.K.A. Brands CEO Ciaran Long said US momentum remained strong, with AU/NZ continuing to show steady signs of stabilization.
“We’re pleased to report a strong second quarter, with net sales growth of 8%, reaching $161 million and exceeding our expectations,” Long said. “This marks our fifth consecutive quarter of growth, demonstrating the strength of our brands and the successful execution of our strategic initiatives.”
The group also reported an adjusted EBITDA of US$7.5 million in Q2, matching expectations.
“Our direct-to-consumer channels remain strong, and our omnichannel expansion continues to exceed expectations,” Long continued. “Princess Polly opened three new stores in the second quarter and is on track to reach 13 locations by year-end, with plans to open 8 to 10 additional stores in 2026. We’re also deepening our wholesale partnerships to drive brand awareness and new customer acquisition.
“We’re especially excited about the successful chain wide debut of Princess Polly and Petal & Pup at Nordstrom, reinforcing the global potential of our brands. Culture Kings continues to advance its test and repeat merchandising strategy, with in-house brands growing double digits in the second quarter.”
Long added that the group’s sourcing diversification initiatives are on schedule, and have already received products from its new vendors. He said he and the team are pleased with the timelines, quality and cost.
“I’m confident that we have established a world-class, flexible supply chain that provides us the ability to adapt as our business grows and future trade dynamics evolve,” Long said. “As we look ahead, I’m confident that we are well positioned to continue growing awareness across our brand portfolio, capture additional market share and drive profitable growth over the near and long term.”
Despite the sales jump up, the group’s gross margin slipped slightly from 57.7 per cent in Q2 2024 to 57.5 per cent in the second quarter this year.
The group’s selling expenses were also up by around US$4 million to US$45.4 million, mostly driven by store selling expenses as the group expands retail footprint.
Marketing expenses were also up, hitting US$19.9 million overall compared to US$18.3 million in Q2 2024.