American retailer AKA Brands has reported its net sales for the second quarter of the year at US$160.5 million, a 7.8 per cent increase compared to the same period last year.

The company, which bought Culture Kings off Australians Simon and Tah-nee Beard, said its Australian and New Zealand sales increased by just 0.1 per cent from $45.65 million to $45.71 million year-on-year. 

CEO Ciaran Long said the results exceeded expectations.

“This marks our fifth consecutive quarter of growth, demonstrating the strength of our brands and the successful execution of our strategic initiatives. 

“Momentum in the US remained strong, with net sales up 14 per cent, while the Australia/New Zealand region continued to show steady signs of stabilisation,” said Long.

The company opened three new Princess Polly stores in the second quarter and is on track to reach 13 locations by the end of the year, with plans to open between eight and 10 additional stores next year. 

Long said the company saw success with its chain-wide debut of Princess Polly and Petal & Pup lines at Nordstrom.

Culture Kings continued to advance its ‘test-and-repeat’ merchandising strategy, with in-house brands growing double digits in the second quarter.

AKA Brands’ gross margin dropped slightly from 57.7 per cent to 57.5 per cent, which the company attributed to an increase in tariffs.

The company’s adjusted EBITDA dropped from $8 million in the second quarter of last year to $7.4 million in the period this year.