Exhibit 99.1
a.k.a. Brands Holding Corp. Reports Third Quarter 2021 Financial Results
 
SAN FRANCISCO – November 9, 2021 – a.k.a. Brands Holding Corp. (NYSE: AKA), a brand accelerator of direct-to-consumer (DTC) fashion brands for the next-generation, today announced financial results for the third quarter ended September 30, 2021.

Results for the Third Quarter
•Net sales increased 155.4% to $161.8 million, compared to $63.3 million in the third quarter of 2020 or 44%1 pro-forma adjusting for the acquisition of Culture Kings, which contributed $62.8 million to net sales during the quarter.
•Net loss attributable to a.k.a. Brands Holding Corp. was $(9.9) million) or $(0.11) per share in the third quarter of 2021, compared to net income attributable to a.k.a. Brands Holding Corp. of $7.1 million or $0.10 per share in the third quarter of 2020.
•Net income attributable to a.k.a. Brands Holding Corp., as adjusted1 was $3.5 million, or $0.04 per share in the third quarter of 2021, compared to $7.1 million or $0.10 per share in the third quarter of 2020.
•Adjusted EBITDA1 was $18.5 million, or 11.5% of net sales, compared to $12.9 million, or 20.4% of net sales in the third quarter of 2020.

“We are very pleased to have delivered strong results for our first quarter as a public company, fueled by growth across our diversified portfolio of brands,” said Jill Ramsey, chief executive officer, a.k.a. Brands. “Net sales grew 155% for the third quarter, or 44%1 on a pro forma basis for Culture Kings, reflecting the power of our next-generation retail platform. During the quarter our brands generated growth across all regions, especially in the U.S. where net sales increased 84%1 on a pro-forma basis. We also saw solid growth in Australia, despite the COVID-19 related lockdowns. Looking ahead, we will continue to accelerate the global growth of our brands by increasing customer awareness and leveraging our unique business model to drive long term profitability and value.”
Recent Business Highlights
•Delivered growth across all brands and regions led by Princess Polly acceleration in the U.S.
•Continued momentum in Culture Kings’ digital business in Australia and the U.S; expanded market presence through new store opening in New Zealand.
•Advanced Petal and Pup with new brand president and U.S. based fulfillment in the third quarter.
•Leveraged agile business model to mitigate impact of global supply chain disruptions; inventory is well positioned for the fourth quarter.
•Acquired mnml, a premier high growth DTC men’s streetwear fashion brand, on October 14, 2021.
Third Quarter Financial Details
•Net sales increased 155.4% to $161.8 million, compared to $63.3 million in the third quarter of 2020 or 44%1 pro-forma adjusting for the acquisition of Culture Kings, which contributed $62.8 million to net sales during the quarter. The increase was driven by a 128% increase in the number of orders processed and 13% growth in the average order value during the quarter. The increase in the number of orders was primarily driven by growth of Princess Polly in the U.S. and the inclusion of Culture Kings.
•Gross margin was 53.2% in the third quarter of 2021, versus 60.8% in the same period last year. The 760 basis point decline in gross margin rate was the result of an approximately $6 million, or 370 basis point, non-cash, purchase accounting charge associated with the Culture Kings acquisition. The balance of the decline was roughly split between higher air freight expense and the inclusion of Culture Kings, which carries a lower gross margin rate as compared to the Company’s other brands due to a lower mix of exclusive product. The gross margin decline was partially offset by the implementation of targeted price increases in Princess Polly and Petal and Pup.
1 See additional information at the end of this release regarding non-GAAP financial measures.


•Selling expenses were $40.6 million, compared to $15.7 million in the third quarter of 2020. Selling expenses were 25.1% of net sales compared to 24.8% of net sales in the third quarter of 2020. The 30 basis point increase as a percent of net sales was driven by an increase in the number of orders shipped and the inclusion of Culture Kings.
•Marketing expenses were $15.5 million, compared to $4.6 million in the third quarter of 2020. The increase in marketing dollars was driven primarily by the inclusion of Culture Kings, which increased its investment in advertising spend as the brand looked to scale in new geographies and tested new marketing opportunities. Marketing expenses were 9.6% of net sales compared to 7.3% of net sales in the third quarter of 2020.
•General and administrative (“G&A”) expenses were $28.9 million, compared to $7.3 million in the third quarter of 2020. G&A expenses were 17.9% of net sales compared to 11.5% of net sales in the third quarter of 2020. The increase in G&A expenses during the quarter was primarily due to an increase in salaries and related benefits and equity-based compensation expense related to increases in headcount across functions to support business growth, the inclusion of Culture Kings, additional professional service fees and transaction costs.
•Adjusted EBITDA1 was $18.5 million, or 11.5% of net sales, compared to $12.9 million, or 20.4% of net sales in the third quarter of 2020. 
Balance Sheet and Cash Flow
•Cash and cash equivalents at the end of the third quarter totaled $54.4 million compared to $26.3 million at the end of fiscal year 2020.
•Debt at the end of the third quarter totaled $98.2 million, compared to $6.4 million at the end of fiscal year 2020. As part of proceeds raised from its IPO, the Company reduced its debt levels by approximately $69.8 million from the $168.0 million of debt borrowed during 2021, prior to the IPO.
•Cash flow from operations for the nine months ended September 30, 2021 was $20.6 million, compared to $9.0 million for the nine months ended September 30, 2020.
Outlook
For the full year fiscal 2021, the Company expects:
•Net sales between $550 million and $560 million.
•Adjusted EBITDA2 of between $60 million and $62 million.
•Weighted average diluted share count of 93.2 million for the full year and 126 million for the fourth quarter.
•Capital expenditures of approximately $6 million.
The above outlook is based on several assumptions, including, but not limited to, the global supply chain challenges, and air freight prices remaining stable to slightly increasing sequentially through the remainder of 2021 and Australia fully exiting its lockdown by the middle of the fourth quarter. See “Forward-Looking Statements” for additional information.
Conference Call
A conference call to discuss the Company’s third quarter results is scheduled for November 9, 2021, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (888) 272-8703 or (713) 936-6995 for international callers. The conference call will also be webcast live at https://ir.aka-brands.com in the Events and Presentations section. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (877) 660-6853 or (201) 612-7415 for international callers, conference ID 13724543. An archive of the webcast will be available on a.k.a. Brands’ investor relations website.
2 The Company has not provided a quantitative reconciliation of our Adjusted EBITDA outlook to a GAAP net income outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future stock-based compensation expense, income taxes, interest expense, and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. See additional information at the end of this release regarding non-GAAP financial measures.



Use of Non-GAAP Financial Measures and Other Operating Metrics
In addition to results determined in accordance with accounting principles generally accepted in the United States of America (GAAP), management utilizes certain non-GAAP performance measures such as net income attributable to a.k.a. Brands Holding Corp., as adjusted, net income per share, as adjusted, free cash flow, adjusted EBITDA and adjusted EBITDA margin for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. See additional information at the end of this release regarding non-GAAP financial measures.
About a.k.a. Brands
Established in 2018, a.k.a. Brands is a brand accelerator of direct-to-consumer fashion brands for the next generation. Each brand in the a.k.a. portfolio is customer obsessed, curates quality exclusive merchandise, creates authentic and inspiring social content and targets a distinct Gen Z and millennial audience. a.k.a. Brands leverages its next-generation retail platform to help each brand accelerate its growth, scale in new markets and enhance its profitability. Current brands in the a.k.a. Brands portfolio include Princess Polly, Culture Kings, mnml, Petal & Pup and Rebdolls.
Forward-Looking Statements
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include the continuation of the COVID-19 pandemic and the potential related disruptions to our operations, customer demand, and our suppliers’ ability to meet our needs; our ability to anticipate rapidly-changing consumer preferences in the apparel, footwear and accessories industries; our ability to acquire new customers, retain existing customers, or maintain average order value levels; the effectiveness of our marketing and our level of customer traffic; merchandise return rates; our success in identifying brands to acquire, integrate and manage on our platform; our ability to expand into new markets; the global nature of our business; our use of social media platforms and influencer sponsorship initiatives, which could adversely affect our reputation or subject us to fines or other penalties; the inherent challenges in measuring certain of our key operating metrics, and the risk that real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; the potential for requirements to collect additional sales taxes or to be subject to other tax liabilities that may increase the costs to our consumers; economic downturns and market conditions beyond our control; currency fluctuations; our ability to attract and retain highly qualified personnel; fluctuations in wage rates and the price, availability and quality of raw materials and finished goods, which could increase costs; interruptions in or increased costs of shipping and distribution, which could affect our ability to deliver our products to the market; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Forward-Looking Statements” in the Company’s final prospectus related to its initial public offering, dated September 21, 2021, filed with the Securities and Exchange Commission. a.k.a. Brands does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact
investors@aka-brands.com

Media Contact
media@aka-brands.com



a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net sales$161,762 $63,336 $379,768 $145,135 
Cost of sales75,652 24,831 171,636 61,437 
Gross profit86,110 38,505 208,132 83,698 
Operating expenses:
Selling40,582 15,707 98,859 39,735 
Marketing15,463 4,602 36,595 11,839 
General and administrative28,900 7,307 61,550 17,827 
Total operating expenses84,945 27,616 197,004 69,401 
Income from operations1,165 10,889 11,128 14,297 
Other expense, net:
Interest expense(4,104)(103)(8,320)(268)
Loss on extinguishment of debt(10,924)— (10,924)— 
Other expense
(561)(117)(623)(122)
Total other expense, net(15,589)(220)(19,867)(390)
Income (loss) before income taxes(14,424)10,669 (8,739)13,907 
Benefit from (provision for) income tax4,331 (3,375)2,625 (4,399)
Net income (loss)(10,093)7,294 (6,114)9,508 
Net loss (income) attributable to noncontrolling interests199 (232)123 (302)
Net income (loss) attributable to a.k.a. Brands Holding Corp.$(9,894)$7,062 $(5,991)$9,206 
Net income (loss) per share
Basic$(0.11)$0.10 $(0.07)$0.13 
Diluted$(0.11)$0.10 $(0.07)$0.13 
Weighted average shares outstanding
Basic88,368,709 69,931,635 81,401,682 69,817,133 
Diluted88,368,709 69,931,635 81,401,682 69,817,133 



a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
September 30,
2021		December 31,
2020
Assets  
Current assets:  
Cash and cash equivalents$54,449 $26,259 
Restricted cash2,177 840 
Accounts receivable4,004 1,183 
Inventory, net95,768 33,124 
Prepaid income taxes7,102 — 
Prepaid expenses and other current assets13,090 4,080 
Total current assets176,590 65,486 
Property, plant and equipment, net12,591 2,121 
Operating lease right-of-use assets26,459 4,477 
Intangible assets, net87,313 29,102 
Goodwill331,342 88,253 
Other assets895 — 
Total assets$635,190 $189,439 
Liabilities, stockholders’ equity and partners’ capital
Current liabilities:
Accounts payable$22,535 $4,689 
Accrued expenses and other current liabilities42,809 18,169 
Sales returns reserve4,122 3,517 
Deferred revenue7,472 4,165 
Income taxes payable— 3,118 
Operating lease liabilities, current5,579 1,234 
Current portion of long-term debt5,000 6,353 
Total current liabilities87,517 41,245 
Long-term debt93,211 — 
Operating lease liabilities21,465 3,262 
Other long-term liabilities1,287 144 
Deferred income taxes, net22,801 5,904 
Total liabilities226,281 50,555 
Stockholders’ equity and partners’ capital:
Preferred stock— — 
Common stock127 — 
Partnership units (1)
— 108,197 
Additional paid-in capital415,341 727 
Accumulated other comprehensive income (loss)(14,706)5,839 
Retained earnings8,147 14,138 
Non-controlling interest— 9,983 
Total stockholders’ equity and partners’ capital408,909 138,884 
Total liabilities, stockholders’ equity and partners’ capital$635,190 $189,439 
__________
(1)Excelerate L.P. was the predecessor entity to a.k.a. Brands Holding Corp.


a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September 30,
20212020
Cash flows from operating activities:
Net income (loss)$(6,114)$9,508 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense1,705 220 
Amortization expense9,631 4,499 
Amortization of inventory fair value adjustment12,251 — 
Amortization of debt issuance costs448 — 
Loss on extinguishment of debt10,924 — 
Lease incentives358 — 
Non-cash operating lease expense4,568 616 
Equity-based compensation6,714 834 
Deferred income taxes, net(8,235)(2,101)
Changes in operating assets and liabilities:
Accounts receivable(2,280)(1,318)
Inventory(16,446)(6,234)
Prepaid expenses and other current assets(5,877)(2,523)
Accounts payable3,461 (171)
Income taxes payable(12,279)2,407 
Accrued expenses and other current liabilities23,188 4,955 
Returns reserve486 (1,336)
Deferred revenue3,351 (166)
Lease liabilities(4,354)(591)
Foreign currency remeasurement(869)373 
Net cash provided by operating activities20,631 8,972 
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired
(226,228)(580)
Purchase of noncontrolling interest(20,198)— 
Purchase of intangible assets
(661)— 
Purchases of property and equipment(4,715)(1,003)
Net cash used in investing activities
(251,802)(1,583)
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance costs98,558 — 
Proceeds from line of credit, net of issuance costs
14,150 10,408 
Repayment of line of credit(22,071)(9,905)
Proceeds from issuance of debt, net of issuance costs
242,735 — 
Repayment of debt(154,513)— 
Proceeds from issuance of units
82,669 450 
Net cash provided by financing activities
261,528 953 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(830)(444)
Net increase in cash, cash equivalents and restricted cash
29,527 7,898 
Cash, cash equivalents and restricted cash at beginning of period
27,099 5,791 
Cash, cash equivalents and restricted cash at end of period
$56,626 $13,689 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$54,449 $13,352 
Restricted cash
2,177 337 
Total cash, cash equivalents and restricted cash$56,626 $13,689 


a.k.a. BRANDS HOLDING CORP.
KEY OPERATING AND FINANCIAL METRICS
(unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Gross margin
53 %61 %55 %58 %
Net income (loss) (in thousands)
$(10,093)$7,294 $(6,114)$9,508 
Net income (loss) margin
(6)%12 %(2)%7 %
Adjusted EBITDA1 (in thousands)
$18,548 $12,906 $46,302 $19,850 
Adjusted EBITDA1 margin
11 %20 %12 %14 %
Key Operational Metrics and Regional Sales
 Three Months Ended September 30,Nine Months Ended September 30,
(metrics in millions, except AOV; sales in thousands)2021202020212020
Key Operational Metrics
Active customers
3.1 1.3 3.1 1.3 
Active customers across a.k.a. Brands2
3.1 2.0 3.1 2.0 
Average order value
$89 $79 $87 $74 
Average order value across a.k.a. Brands2
$89 $84 $89 $82 
Number of orders
1.8 0.8 4.4 2.0 
Number of orders across a.k.a. Brands2
1.8 1.3 4.9 3.2 
Sales by Region (actual)
U.S.$76,435 $37,648 $190,470 $83,081 
Australia63,831 19,707 142,163 45,780 
Rest of world21,496 5,981 47,135 16,274 
Total$161,762 $63,336 $379,768 $145,135 
Year-over-year growth155.4 %161.7 %
Year-over-year growth on a constant currency basis3
156.0 %151.0 %
1 See additional information at the end of this release regarding non-GAAP financial measures.
2 Metrics “across a.k.a. Brands” assume we owned Culture Kings since January 1, 2020.
3 In order to provide a framework for assessing the performance of our underlying business, excluding the effects of foreign currency rate fluctuations, we compare the percent change in the results from one period to another period using a constant currency methodology wherein current and comparative prior period results for our operations reporting in currencies other than U.S. dollars are converted into U.S. dollars at constant exchange rates (i.e., the rates in effect on December 31, 2020, which was the last day of our prior fiscal year) rather than the actual exchange rates in effect during the respective periods.


a.k.a. BRANDS HOLDING CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)

Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and adjusted EBITDA margin are key performance measures that management uses to assess our operating performance. Because adjusted EBITDA and adjusted EBITDA margin facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.
We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. We expect adjusted EBITDA margin to increase over the long-term as we continue to scale our business and achieve greater leverage in our operating expenses.
We calculate adjusted EBITDA as net income (loss) adjusted to exclude: interest and other expense; provision for income taxes; depreciation and amortization expense; stock-based compensation expense; transaction costs; and one-time or non-recurring items. Adjusted EBITDA is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in net income (loss), the most directly comparable financial measure calculated in accordance with GAAP. A reconciliation of non-GAAP adjusted EBITDA to net income (loss) for the three and nine months ended September 30, 2021 and 2020 is as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net income (loss)$(10,093)$7,294 $(6,114)$9,508 
Add (deduct):
Other expense, net
15,589 220 19,867 390 
Provision for (benefit from) income tax(4,331)3,375 (2,625)4,399 
Depreciation and amortization expense4,235 1,602 11,336 4,719 
Inventory step-up amortization expense5,985 — 12,251 — 
Equity-based compensation expense5,582 415 6,714 834 
Transaction costs1,581 — 4,873 — 
Adjusted EBITDA$18,548 $12,906 $46,302 $19,850 
Net income (loss) margin(6)%12 %(2)%7 %
Adjusted EBITDA margin11 %20 %12 %14 %
Net Income Attributable to a.k.a. Brands Holding Corp., As Adjusted and Net Income Per Share, As Adjusted
Net income attributable to a.k.a. Brands Holding Corp., as adjusted and net income per share, as adjusted are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in net loss attributable to a.k.a. Brands Holding Corp. and net loss per share calculated in accordance with GAAP, the most directly comparable financial measures calculated in accordance with GAAP. Management believes that net income attributable to a.k.a. Brands Holding Corp., as adjusted and net income per share, as adjusted are meaningful measures to share with investors because they better enable comparison of the performance with that of the comparable period. In addition, net income attributable to a.k.a. Brands Holding Corp., as adjusted and net income per share, as adjusted afford investors a view of what management considers a.k.a.’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year.
We have calculated net income attributable to a.k.a. Brands Holding Corp, as adjusted and net income per share, as adjusted for the three and nine months ended September 30, 2021 by adjusting net loss, net loss per share and net loss attributable to noncontrolling interests, as applicable, for the following:
1.Inventory step-up amortization expense resulting from the acquisition of Culture Kings;
2.Equity-based compensation expense related to performance-based awards that vested upon IPO; and
3.Loss on extinguishment of debt.


There were no adjustments to net income or net income per share for the three and nine months ended September 30, 2020. A reconciliation of non-GAAP net income, as adjusted to net loss, as well as the resulting calculation of net income per share, as adjusted for the three and nine months ended September 30, 2021 are as follows:
 Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
Net loss$(10,093)$(6,114)
Adjustments:
Inventory step-up amortization expense5,985 12,251 
Equity-based compensation expense related to performance-based awards4,903 4,903 
Loss on extinguishment of debt10,924 10,924 
Tax effects of adjustments(6,544)(8,423)
Net income, as adjusted$5,175 $13,541 
Net loss attributable to noncontrolling interests$199 $123 
Adjustments:
Inventory step-up amortization expense(2,693)(5,513)
Tax effects of adjustment808 1,654 
Net income attributable to noncontrolling interests, as adjusted$(1,686)$(3,736)
Net income, as adjusted$5,175 $13,541 
Net loss attributable to noncontrolling interests, as adjusted(1,686)(3,736)
Net income attributable to a.k.a. Brands Holding Corp., as adjusted$3,489 $9,805 
Net income per share, as adjusted$0.04 $0.12 
Weighted-average shares, basic and diluted88,368,709 81,401,682 
Pro Forma Net Sales
Pro forma net sales is considered a non-GAAP financial measure under the SEC’s rules. A reconciliation of non-GAAP pro forma net sales to net sales, which is the most directly comparable financial measure calculated in accordance with GAAP, for the three months ended September 30, 2021, and 2020 is as follows:
 Three Months Ended September 30, 2021Three Months Ended September 30, 2020Growth Rate
 ActualActualCulture KingsPro FormaActualPro Forma
U.S.$76,435 $37,648 $3,989 $41,637 103.0 %83.6 %
Australia63,831 19,707 40,017 59,724 223.9 %6.9 %
Rest of world21,496 5,981 4,707 10,688 259.4 %101.1 %
Total$161,762 $63,336 $48,713 $112,049 155.4 %44.4 %