Advertisement
Aritzia's fiscal second-quarter results showed strong performance, with revenue rising 31.9% year-on-year and adjusted EPS beating estimates. U.S. operations drove growth, supported by retail expansion and eCommerce, along with robust demand for the Fall collection and effective inventory management. Gross profit margin improved due to better initial markup and operational leverage. The company projects third-quarter revenue of USD 875-900 million and full-year revenue of USD 3.30-3.35 billion, supported by USD 200 million in capital expenditure for boutiques and distribution. Analysts continue to rate the stock positively.
Aritzia recorded robust growth in its fiscal second quarter, with revenue rising 31.9% year-on-year, surpassing analyst expectations. The company's adjusted earnings per share (EPS) also came in above consensus estimates, signaling strong operational performance and effective cost management. Advertisement
The U.S. market contributed significantly, with net revenue increasing 40.7%. This growth was fueled by the expansion of retail locations and continued momentum in eCommerce sales. The company highlighted that solid demand for its Fall collection, combined with a strong inventory position, supported higher sales volumes. Improved gross profit margin reflected gains from better initial markup and operational cost leverage, indicating more efficient business operations.
In the second quarter, Aritzia's revenue reached CAD 812 million, outperforming the consensus estimate of CAD 752.85 million from 11 analysts. Adjusted EPS was reported at CAD 0.59, above the expected CAD 0.39, while adjusted net income stood at CAD 69.8 million, surpassing the forecast of CAD 46.16 million. The company's gross margin increased to 43.8%, highlighting improved profitability.
Looking forward, Aritzia expects third-quarter revenue to range between USD 875 million and USD 900 million, representing growth of 20% to 24%. For the full fiscal year 2026, revenue is projected at USD 3.30-3.35 billion, up 21% to 22%. The company plans to invest USD 200 million in capital expenditures for new boutiques and distribution facilities, supporting both physical retail expansion and supply chain efficiency.
Analyst sentiment remains positive. The current average rating for Aritzia shares is "buy," with all 12 analysts covering the stock recommending either "buy" or "strong buy." There are no "hold" or "sell" recommendations. Wall Street's median 12-month price target for the stock is CAD 94.00, around 13% above the recent closing price of CAD 81.81. The stock is trading at 26 times the next 12-month earnings, slightly lower than the P/E of 27 recorded three months ago.
The company's strong quarterly results reflect a combination of strategic expansion, healthy product demand, and effective cost and inventory management. These factors have contributed to both revenue and profit growth while reinforcing investor confidence in Aritzia's market position and long-term growth potential.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
