Aritzia Inc

ATZ

Equity

ISIN CA04045U1021 / Valor 33859986

Toronto Stock Exchange (2024-09-18)

CAD 46.71-1.29%

Aritzia Inc
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About company

Aritzia Inc. is a Canadian fashion retailer known for its emphasis on "Everyday Luxury," a concept that originated from its first standalone boutique opened in 1984 in Vancouver, Canada, by Brian Hill. The company has since expanded significantly, both domestically and internationally, with over 100 stores across North America and a robust global eCommerce platform. Aritzia has developed and launched several exclusive in-house brands, including Babaton, Tna, Wilfred, and Sunday Best, each catering to different facets of women's apparel and lifestyle. In 2016, the company went public on the Toronto Stock Exchange (TSX) under the ticker symbol ATZ, marking a new phase of growth and accessibility for investors. Further diversifying its offerings, Aritzia acquired the premium athletic wear brand Reigning Champ in 2021, venturing into men's clothing. Under the leadership of CEO Jennifer Wong, Aritzia continues to focus on providing high-quality, fashionable clothing options for its clientele, while also engaging in community support and philanthropy through its Aritzia Community™ initiative.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Net Revenue Growth

Aritzia Inc. reported a net revenue increase of 7.8% to $498.6 million for the first quarter of Fiscal 2025, compared to $462.7 million in Q1 2024. This growth was driven by positive comparable sales across all geographies and channels, with a notable 13% increase in the United States due to the company's real estate expansion strategy and growing brand awareness.

Retail and eCommerce Performance

Retail net revenue for Aritzia Inc. increased by 9.2% to $357.8 million in Q1 2025, compared to $327.6 million in Q1 2024. This was attributed to the strong performance of new and repositioned boutiques. eCommerce net revenue also saw a rise of 4.2% to $140.8 million, despite being impacted by a lower volume of markdown sales.

Gross Profit and Margins

Aritzia Inc.'s gross profit increased by 22.0% to $219.5 million in Q1 2025, up from $180.0 million in Q1 2024. The gross profit margin improved significantly to 44.0%, compared to 38.9% in the previous year, driven by lower markdowns, improved initial markup (IMU), and cost savings from the company's smart spending initiatives.

Net Income and Adjusted EBITDA

Net income for Aritzia Inc. decreased by 9.4% to $15.8 million in Q1 2025, compared to $17.5 million in Q1 2024. However, Adjusted EBITDA saw a substantial increase of 70.6% to $53.9 million, reflecting a stronger operational performance and improved margins.

Outlook for Fiscal 2025

Aritzia Inc. expects net revenue for the second quarter of Fiscal 2025 to be in the range of $570 million to $590 million, representing growth of approximately 7% to 10%. For the full Fiscal 2025, the company anticipates net revenue between $2.52 billion and $2.62 billion, driven by retail expansion and strategic investments in digital initiatives.

Summarized from source with an LLMView Source

Key figures

106%1Y

9.91%3Y

166%5Y

Performance

44.9%1Y

47.6%3Y

47.6%5Y

Volatility