- Aritzia’s adjusted earnings per share (EPS) for the second quarter are C$0.21, surpassing last year’s C$0.030 and exceeding the estimate of C$0.15.
- Net revenue reached C$615.7 million, marking a 15% year-over-year increase, and beating the estimate of C$583.4 million.
- E-commerce revenue grew 10% year-over-year to C$190.0 million, slightly surpassing the estimate of C$189 million.
- Retail revenue saw an 18% rise to C$425.6 million, outperforming the expected C$393.3 million.
- Adjusted EBITDA significantly increased to C$55.2 million from C$21.2 million last year, exceeding the forecast of C$43.1 million.
- Comparable sales improved by 6.5%.
- The company ended with 122 stores, a 5.2% increase from last year, close to the estimate of 123 stores.
- The Company projects a 400 basis point increase in gross profit margin and a 100 basis point increase in SG&A as a percentage of net revenue in Q3 Fiscal 2025 compared to Q3 Fiscal 2024.
- The U.S. operations led a 24% net revenue increase, fueled by effective real estate expansion, accelerated e-commerce growth, and strong sales in boutiques.
- Analyst ratings include 8 buys, 1 hold, and no sells.
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A look at Aritzia Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Aritzia Inc., a women’s fashion retailer known for its trendy and stylish clothing, is showing a mixed long-term outlook based on the Smartkarma Smart Scores. With a high Momentum score of 5, reflecting strong market performance, the company seems to be gaining traction. However, its Value and Resilience scores are comparatively lower at 2, indicating some room for improvement in terms of valuation and ability to weather economic challenges. Interestingly, Aritzia’s Growth score of 3 suggests moderate potential for expansion and development in the coming years. On the other hand, the company’s Dividend score of 1 points to limited returns for shareholders in terms of dividends.
Despite facing some challenges, Aritzia Inc. is strategically positioned to capitalize on its momentum and potential for growth in the women’s fashion market. By focusing on enhancing its value proposition and building resilience, the company could further solidify its position in Canada and the United States. Investors may want to keep an eye on Aritzia’s performance and strategic moves to gauge its long-term sustainability and success in the competitive retail landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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