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: Newly public A.K.A. Brands acquires men’s streetwear brand Mnml

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Newly public A.K.A. Brands Holding Corp. has announced another addition to its clothing-brand portfolio, Mnml, a men’s streetwear label acquired for $48.6 million in combined cash and equity.

Mnml was launched in 2016 and is billed as selling affordable men’s apparel. The brand had $20 million in net revenue in fiscal 2020, about 20% from outside of the U.S. The brand is expected to be immediately accretive to net income, according to A.K.A.

Mnml items will be sold through Culture Kings in the U.S. and Australia, another brand in the A.K.A.
AKA,
-3.12%

portfolio. Mnml has its own e-commerce site.

Other brands in the A.K.A. lineup are Princess Polly, Petal & Pup and Rebdolls.

See: A.K.A. Brands shares slump in trading debut as company highlights risk that eco-conscious Gen Z shoppers will reject its fast-fashion business model

A.K.A.’s stock began trading on Sept. 22, priced at $11 per share, the low end of a range that had been lowered before the debut. The stock was trading on Friday at about $10.35.

The Renaissance IPO ETF
IPO,
-1.61%

was up 6.1% for the year to date, while the S&P 500 index
SPX,
-0.36%

has gained 20.5% in 2021.

A.K.A.’s “differentiated and diversified platform of next generation fashion brands, asset-light technology operations, and agility through data-driven decision-making are key competitive moats that underpin our Outperform rating,” wrote Cowen analysts in their initiation note this week.

Cowen has an $11 price target on A.K.A. shares.

Despite being “intrigued” by A.K.A.’s brands, Wells Fargo rates the stock equal weight, “given a limited track record over the company’s short, three-year history.”

Wells Fargo has a $10 price target on A.K.A. stock. 

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