We are reiterating our Buy rating, $30 price target and projections with a.k.a. Brands announcing 2Q26 (June) results after the close next Wednesday. We believe, with the company anniversarying material shocks from China tariffs which impacted product flows and margins, the potential for upside from Street expectations remain strong and will allow a.k.a. Brands to demonstrate what should be material operating leverage opportunities from increased Princess Polly stores (14 worldwide versus 10 last year) and wholesale expansion for Petal & Pup and Princess Polly. Further, we expect tariff refunds have allowed the company to even further reduce debt and invest in the core business. As such, and with comparisons remaining impacted by tariffs and the ensuing supply chain shifts, we believe the remainder of 2026 provide a.k.a. Brands with ample opportunity to reshape investor conversations and re-emphasize the multiple positives of the company’s growing omnichannel business model. As such, we reiterate our Buy rating and $30 price target for AKA.
