We are reiterating our Buy rating and $30 price target after a.k.a. Brands Holding reported basically inline 2Q26 (June) top line and EBTIDA results, driven by solid growth in the domestic and non-Australian markets, as the company anniversaried the highly negative impacts of tariffs, and the focus on new Princess Polly stores, wholesale expansion and Culture Kings’ margin growth begins to demonstrate the ability of a.k.a. to register solid EBITDA growth. Further, the company provided basically inline initial 3Q and unchanged 2026 guidance; we note the 3Q guide projects YoY top line growth of 8.8% to 11.5% and EBITDA expansion of 14% to 21%. Further, management announced the first Culture Kings domestic store expansions since the initial Las Vegas opening in 4Q22 and guided to 10 new Princess Polly store openings in 2027. We believe the ability to drive material operating leverage via new stores is becoming increasingly obvious and, with the potential for 100+ domestic Princess Polly locations (versus 13 currently), presages an impressive growth story for a.k.a. Brands; we reiterate our Buy rating and $30 price target.
