Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

aka Brands Holding Corp / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $30 price target and tweaking higher our 2025 and 2026 revenue and EBITDA projections after a.k.a. Brands reported another strong quarter (with material top line upside), despite being materially impacted on both the top and EBITDA lines by management's decision to maintain inventory levels despite triple digit China tariffs in April.</li><li>While the remaining high tariff inventory will continue to negatively impact 3Q gross margins, we believe the a.k.a. growth story remains fully intact on virtually all levels, positioning the company for strong top and EBITDA line expansion and, in 4Q to demonstrate what should be continued material organic expansion into 2026.</li><li>As such, we remain strong believers in the a.k.a. omnichannel business model, and reiterate our Buy rating and $30 price target for AKA.</li></ul>

We are reiterating our Buy rating and $30 price target and tweaking higher our 2025 and 2026 revenue and EBITDA projections after a.k.a. Brands reported another strong quarter (with material top line upside), despite being materially impacted on both the top and EBITDA lines by management's decision to maintain inventory levels despite triple digit China tariffs in April.While the remaining high tariff inventory will continue to negatively impact 3Q gross margins, we believe the a.k.a. growth story remains fully intact on virtually all levels, positioning the company for strong top and EBITDA line expansion and, in 4Q to demonstrate what should be continued material organic expansion into 2026.As such, we remain strong believers in the a.k.a. omnichannel business model, and reiterate our Buy rating and $30 price target for AKA.

AKA: 2Q Review: Tariffs Temper NT Upside; LT Growth Intact; Reiterate Buy, PT