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, but lowering our 2025 and 2026 projections after a.k.a. Brands reported 3Q25 (September) results below even our Street low expectations, as Princess Polly was impacted by shifts in the supply chain due to tariffs, which more than offset material positives from the Australian operations, expansion at Culture Kings and wholesale growth at Petal & Pup.</li><li>That said, the issues at Princess Polly were overwhelmingly driven by supply, not demand, which we believe has remained robust.</li><li>With inventory flows normalizing, management is seeing the return of positive sales at Princess Polly, which should position the company for a robust 2026.</li></ul>

We are reiterating our Buy rating and $30 price target, but lowering our 2025 and 2026 projections after a.k.a. Brands reported 3Q25 (September) results below even our Street low expectations, as Princess Polly was impacted by shifts in the supply chain due to tariffs, which more than offset material positives from the Australian operations, expansion at Culture Kings and wholesale growth at Petal & Pup.That said, the issues at Princess Polly were overwhelmingly driven by supply, not demand, which we believe has remained robust.With inventory flows normalizing, management is seeing the return of positive sales at Princess Polly, which should position the company for a robust 2026.

AKA: 3Q Review: Tariffs Hurt, But Quickly Moving Forward; Reiterate Buy, PT