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Fashion Retail Stock: Aritzia Inc. (TSX: ATZ) Gains on First Quarter Results

July 12, 2024 (Investorideas.com Newswire) Investorideas.com, a go-to platform for big investing ideas, reports on trading for - Aritzia Inc. (TSX: ATZ), a design house with an innovative global platform offering Everyday Luxury online and in its boutiques.

The stock is trading at $47.17, up $5.66, gaining 13.64%, with a day's high of $47.70.

Aritzia announced its financial results for the first quarter ended June 2, 2024 ("Q1 2025").

"We are pleased with our performance during the first quarter of Fiscal 2025, as we generated an 8% increase in net revenue compared to the first quarter of Fiscal 2024 and delivered positive comparable sales growth in all geographies and all channels. Our top line was fueled by a 13% net revenue increase in the United States, driven by our real estate expansion strategy and growing brand awareness. Throughout the quarter we continued to optimize the composition of our inventory, which drove a sequential acceleration in sales trends each month. As expected, we also delivered meaningful improvement in our Adjusted EBITDA margin," said Jennifer Wong, Chief Executive Officer.

"As we navigate a dynamic consumer environment, we're encouraged by the positive response to both our new styles and client favourites. Our new boutiques continue to perform ahead of expectations, and we are particularly excited about the extraordinary pipeline of boutique openings this year, representing 50% square footage growth in the United States. We expect further improvement in our eCommerce business driven by product optimization and strategic investments. We are confident that our real estate expansion strategy, digital initiatives, and growing brand awareness in the United States will enable us to deliver consistent, profitable growth for years to come," concluded Ms. Wong.

First Quarter Highlights

For Q1 2025, compared to Q1 20241:

Net revenue increased 7.8% to $498.6 million, with comparable sales2 growth of 2.0%

United States net revenue increased 13.0% to $284.7 million, comprising 57.1% of net revenue

Retail net revenue increased 9.2% to $357.8 million

eCommerce net revenue increased 4.2% to $140.8 million, comprising 28.2% of net revenue

Gross profit margin2 increased 510 bps to 44.0% from 38.9%

Selling, general and administrative expenses as a percentage of net revenue increased 220 bps to 35.4% from 33.2%

Adjusted EBITDA2 increased 70.6% to $53.9 million

Net income decreased 9.4% to $15.8 million. Last year included a non-recurring gain of $15.0 million relating to the Company's acquisition of Reigning Champ. Net income per diluted share was $0.14 per share, compared to $0.15 per share in Q1 2024

Adjusted Net Income2 increased 122.7% to $25.0 million. Adjusted Net Income per Diluted Share2 was $0.22 per share, compared to $0.10 per share in Q1 2024

Recent News:
https://ca.finance.yahoo.com/news/aritzia-reports-first-quarter-fiscal-200100637.html

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