We are reiterating our Buy rating and $30 price target for a.k.a. Brands Holding and tweaking our 3Q25 projections after meeting with management in their San Francisco headquarters. While virtually all of our apparel players have been impacted by tariffs, we believe a.k.a., due to the need for continual flows of new products to drive momentum (and full price sales), has been somewhat more impacted than most. Further, as the company has reworked their supply chain "on the fly," there were natural teething pains which we believe have impacted 3Q25. That said, we believe the company's business model remains fully intact, with multiple key positive catalysts (i.e. debt refinancing, more store openings, continued expansion in the wholesale channel) which should drive 2026 upside and refocus investors on one of the few true growth stories in the specialty retailing space. As such, we reiterate our Buy rating and $30 price target for AKA.
