a.k.a. Brands posts 14% U.S. Growth despite freight strain. a.k.a. Brands increased sales and gross margin after its sourcing overhaul, with Princess Polly expanding while higher freight costs pressured the business. a.k.a. Brands reported 14% U.S. sales growth in the third quarter of 2026 as its completed sourcing overhaul helped lift gross margin despite elevated freight costs. a.k.a. Brands Holding Corp. (AKA) returned to double-digit sales growth in its largest market while improving gross margin, an indication that its sourcing overhaul is helping absorb higher freight expenses. U.S. sales increased 14% in the third quarter of 2026, the first double-digit gain since the company transformed its sourcing network the prior year. Consolidated net sales rose 9.7% to $161.3 million, while adjusted EBITDA, a measure of earnings excluding interest, taxes, depreciation, amortization and certain other items, increased nearly 17% to $8.2 million. The results marked the company's third consecutive quarter of double-digit adjusted EBITDA growth. Management outlined the performance in its earnings call, according to the Motley Fool transcript. Full-price selling offsets freight pressure. Gross margin expanded approximately 100 basis points to 60.1% despite significantly elevated inbound freight costs. Management attributed much of that improvement to Culture Kings, where a multiyear shift toward full-price selling and a test-and-repeat purchasing model is now embedded in operations. That model uses initial product demand to guide subsequent purchases, helping the business replenish successful styles rather than rely as heavily on markdowns to clear inventory. The quarter's margin improvement suggests those merchandising changes provided a cushion against transportation costs, rather than requiring freight relief to deliver better results. The company also completed its planned move to a new Ohio distribution center during the quarter. Management expects the facility to improve customer service and margins while supporting online sales, stores and wholesale accounts. Those benefits remain expectations, distinct from the gross-margin improvement already reported. The company also completed its planned move to a new Ohio distribution center during the quarter. Smaller brands are testing an internally developed artificial intelligence tool to guide purchasing, allocation and pricing. The company is also using AI to accelerate content production, although these initiatives remain earlier-stage efforts rather than quantified contributors to quarterly earnings. Princess Polly expands beyond its online base. Princess Polly supplied several concrete sources of growth. Its back-to-school season was its strongest to date, with sweat sales reaching four times the prior year's level and knit tops nearly doubling. U.S. TikTok Shop sales nearly tripled from a year earlier and increased more than 40% from the second quarter. Physical expansion added another route to customers. Openings in Orlando and Houston brought Princess Polly's U.S. fleet to 15 stores. The brand planned fourth-quarter openings in Minnesota and Texas and had signed leases for at least six U.S. locations in 2027. International growth was particularly strong in the U.K., where Princess Polly's quarterly sales were roughly four times the prior year's level and rose 27% sequentially. A local website, app and distribution center launched in March improved delivery speed, management said. A dedicated German website was planned for the fourth quarter, extending the brand's European push. Regional weakness has not disappeared. The gains were uneven across markets. Rest of World sales increased 79%, accelerating from approximately 49% growth in the second quarter. Australia and New Zealand remained in decline, though their approximately 7% sales drop was smaller than the second quarter's 12% decrease. Management linked that regional performance to the shift toward more profitable full-price selling. The distinction matters: better margins and stronger U.S. demand do not yet amount to growth across every geography. The next test is whether the company can sustain its improved merchandise economics while adding stores, extending international distribution and absorbing elevated freight bills. Key facts. * Quarterly net sales: $161.3 million, up 9.7% year over year * Adjusted EBITDA: $8.2 million, up nearly 17% * Gross margin: 60.1%, up approximately 100 basis points * Intraday shares: AKA: down 4.58% as of Nov. 5, 2026, at 14:50:41 GMT

As legacy fashion brands fail, online retailers are moving into physical stores. Posted yesterday at 1:15pm, updated about 17h ago In short: A growing number of fashion and beauty brands are moving into physical stores despite a wave of legacy brand collapses. Brand executives and retail experts say the experience between online and in-store is becoming more integrated. What's next? Retail experts expect more e-commerce businesses to move into the physical store space. Australian retail is experiencing a strange phenomenon: brands with strong online footprints are moving into bricks and mortar. The wave of legacy Australian fashion brands falling into insolvency has not deterred Princess Polly, which has been opening stores on the Gold Coast and in Brisbane. "I think there is going to be that bit of a changing of the guards for the brands and retailers that are maybe downsizing or reducing their footprint," chief merchandise officer Courtney Dres said. "Then the younger, newer brands are coming in and starting to make a little bit of a splash." In the past few years, Mosaic Brands, the owner of Katies, Millers and Noni B, has collapsed. On its tail was Cue Clothing Co, Veronika Maine, Betts and Jeanswest, which have entered administration. Country Road Group has downsized its physical presence. Even 188-year-old department store David Jones is reportedly on life support and weighing cutting store numbers amid the exit of numerous brands. The outlook for retail is not rosy. Data from CreditorWatch shows the retail insolvency rate has been increasing since June 2022. Chief executive Patrick Coghlan expects that to increase in the fashion sector due to its reliance on discretionary spending. "Conditions are likely to get still tougher in the fashion retail space before they improve," Mr Coghlan said moving from online to in-store trade needed "to be carefully managed". Experiencing the brand. Beauty brands Oz Hair and Beauty, Adore Beauty, activewear brand Kikiva and furniture company Mocka have opened physical stores in the last few years. When Princess Polly opened in Pacific Fair on the Gold Coast in July, hundreds of customers queued up in the early hours, drawn in by prizes and the chance to be seen at the launch. "[The customers] are just so excited to be there and so excited to experience the brand in person," Ms Dres said. "I think that really tells us all we need to know about continuing the rollout of our retail stores." Princess Polly, which is owned by US-listed A.K.A Brands, opened more than a dozen shops in the US before expanding into Sydney last November, the Gold Coast and, as of this weekend, Brisbane. Physical space can add value. Queensland University of Technology retail expert Gary Mortimer said moving into omnichannel trade could add value, provided the transition was handled properly. "You wouldn't expect an online pure-play retailer to suddenly open 64 stores, because it wouldn't be sustainable," he said. "But they may open three stores, or they may open a bunch of stores, but only temporarily... and that will then create a level of experience and excitement and entertainment which draws people to the online site." Dr Mortimer said value was not just about price. "Speed is now becoming the currency of retailers," he said. "It's not about shopping online because that's convenient - it's consumers' desire for immediate gratification." Ms Dres said that was part of the Princess Polly strategy. "Basically, as soon as you buy it online, it almost immediately is packed and shipped out," she said. "But of course, retail is a way to be able to be instant." Shifting expectations. VRG GRL co-founder Daniella Dionyssiou says returning to in-store trading feels like a return to the brand's roots. The business started trading as Verge Girl in 2008 with one Brisbane store and opened a second store in 2014 before moving fully online in 2019. Ms Dionyssiou says customer expectations have shifted since then. "It's no longer just about the product, but the experience and value a brand brings beyond the transaction," she said. "The brands seeing the greatest success are those that understand their customers and have a clear sense of what makes them unique." An abundance of sales data is available to e-commerce businesses, but social media can also help to inform strategy and create a "brand halo", or the in-store experience leading to online purchases. "You look at a brand like Mecca... they've done an excellent job in really blending both the social media side of their business, their online business and the physical business together," retail analyst James Stewart said. Customers shop differently. Ms Dionyssiou, whose business has opened stores in Sydney and plans to open more in Queensland, says the process has its challenges. "Physical retail brings a different set of considerations, from managing stock across locations to understanding what customers are drawn to when they can see and try on our collections in person," she said. Ms Dres said every store opening had been a learning experience. "We can't ignore the fact that obviously retail is a very competitive environment, and customers, of course, will vote with their wallets," Mr Stewart does not believe insolvencies in the sector necessarily mean retailers opening physical stores are putting themselves at risk. He said the number one reason retail brands failed was because they lost relevance. "Retailers have been opening and closing for generations," Mr Stearrt said. "I don't think that just because you're in a physical environment that's necessarily a sign that you might fail, or alternatively, a bad investment. It could be an excellent investment."

Princess Polly expanding into Jacksonville with new St. Johns Town Center store. The online fashion retailer is making its move into Northeast Florida with a new storefront in Jacksonville. Published Date: August 27, 2026, 6:17 PM EDT Jacksonville shoppers will soon be able to swap the online cart for a fitting room as Princess Polly brings its fashion-forward styles to St. Johns Town Center. Video Muted The online women's fashion shop is opening at 4711 River City Drive with the first Northeast Florida store at the shopping complex. Plans are underway for a $158,800 buildout of the new store. Princess Polly website features women's apparel, shoes, jewelry, and accessories from a range of categories including dresses, tops, bottoms, swimsuits, activewear, loungewear and more. The retailer also regularly adds new styles and organizes its collections around trends and occasions. The brand describes itself as a fashion destination for shoppers looking for current styles, with daily drops and collections designed around everything from everyday outfits to parties, festivals and other occasions. Now for Jacksonville shoppers who are already familiar with the brand from their screens, the new store will offer a different way to shop Princess Polly, without waiting for the delivery driver. An opening date has not yet been announced. Love its content? Add WhatNow as a preferred source on Google to see more of its trusted coverage when you search. Be the first to know. From new restaurant openings to exciting retail launches and real estate insights, be the first to know what's happening in Jacksonville