A.K.A. Brands posts 3% revenue growth; gross margin jumps to 63% on tariff refunds

Filed May 12, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 13, 2025 · ~2 min read

Key Changes

• high

  Gross margin expanded 600 basis points to 63%, driven by $16.5M in one-time tariff refunds and improved inventory discipline, partially offset by a $12M streetwear inventory write-off as the company completes its test-and-repeat transition.

  MD&A: Gross Margin verify on EDGAR →
• high

  Material weaknesses in financial controls, first disclosed in 2021, remain unremediated as of March 31, 2026. Management now targets remediation by year-end 2026 and has completed ERP deployment across most operations with IT controls now implemented.

  Controls & Procedures verify on EDGAR →
• high

  Revenue growth decelerated sharply to 3% from 10% in the prior-year quarter, with order growth slowing to 4% and average order value declining 1%. Adjusted EBITDA nearly doubled to $5.1M despite the slowdown.

  MD&A: Revenue verify on EDGAR →