In This Article:
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Net Revenue: $729 million, an increase of 12% from last year.
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Comparable Sales Growth: 6.6%.
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Normalized Net Revenue Growth: 16%.
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Normalized Comparable Sales Growth: 9.2%.
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Net Revenue in the United States: $404 million, a 24% increase.
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Normalized Net Revenue Growth in the United States: 27%.
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Net Revenue in Canada: $325 million, a decrease of 0.6%.
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Normalized Net Revenue Growth in Canada: 5%.
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Retail Channel Net Revenue: $487 million, a 10% increase.
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Normalized Retail Net Revenue Growth: 13%.
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E-commerce Net Revenue: $242 million, a 14% increase.
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Normalized E-commerce Growth: 22%.
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Gross Profit: $333 million, a 23% increase.
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Gross Profit Margin: 45.8%, up 430 basis points.
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SG&A Expenses: $216 million, up 15%.
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Adjusted EBITDA: $136 million, a 49% increase.
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Adjusted EBITDA Margin: 18.7%, up 470 basis points.
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Inventory: $462 million, up 16%.
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Free Cash Flow: $104 million.
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Cash Balance: $207 million.
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Share Repurchase: 134,000 shares, $5.9 million returned to shareholders.
Release Date: January 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aritzia Inc (ATZAF) reported a 16% increase in net revenue for the third quarter, driven by strong e-commerce momentum and geographic expansion.
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The company achieved record-breaking sales during the Black Fiveday event, with nearly 40% of stores reaching all-time sales records.
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Net revenue in the United States increased by 27% in the third quarter, showcasing the brand's growing popularity and successful expansion efforts.
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Aritzia Inc (ATZAF) opened 11 new and repositioned boutiques in the last 12 months, including flagship locations in key markets like SoHo and Chicago.
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The company reported a 23% increase in gross profit, with a gross profit margin improvement of 430 basis points, driven by better inventory management and lower markdown rates.
Negative Points
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Net revenue in Canada decreased by 0.6% from the previous year, indicating challenges in the Canadian market.
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The company faced an 80-basis-point headwind from higher freight costs, impacting overall profitability.
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SG&A expenses increased by 15%, driven by higher variable selling costs and strategic investments, leading to a 90-basis-point increase as a percentage of net revenue.
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Despite strong performance, the company remains cautious about macroeconomic challenges, particularly in Canada.
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The repositioning of the Chicago flagship faced complex construction issues, resulting in a longer payback period compared to other locations.