Aritzia (TSE:ATZ) Issues Quarterly Earnings Results

Aritzia (TSE:ATZ – Get Free Report) issued its quarterly earnings results on Thursday. The company reported C$1.31 EPS for the quarter, FiscalAI reports. The firm had revenue of C$1.17 billion for the quarter. Aritzia had a net margin of 11.45% and a return on equity of 34.33%.

Here are the key takeaways from Aritzia’s conference call:

  • Aritzia reported exceptional Q2 momentum, with net revenue up 44% to CAD 1.17 billion, comparable sales up 35%, and adjusted EBITDA margin expanding 590 basis points to a record 21%, excluding CAD 97 million in tariff refunds.
  • Growth was broad-based, led by the U.S. where revenue increased 60% and digital revenue surged 68%; retail also delivered double-digit comparable sales growth, supported by strong productivity from new and repositioned boutiques.
  • Management raised full-year revenue guidance to CAD 4.78 billion–CAD 4.88 billion and now expects adjusted EBITDA margin of approximately 20%. The company also plans 12–13 new boutiques and four to five repositions, while continuing opportunistic share repurchases.
  • Q3 revenue growth is expected to moderate to 23%–27%, with comparable sales growth in the high teens as Aritzia laps unusually strong prior-year results, including the mobile-app launch. Q3 SG&A is also expected to rise 50–100 basis points due to the timing of investments in technology, distribution, AI, and other infrastructure.
  • Inventory ended Q2 up 36% year over year at CAD 715 million, which management said reflects stronger positioning and an under-inventoried comparison base; executives believe it is sufficient to support holiday demand while maintaining improved markdown performance.

Aritzia Stock Down 1.1%

ATZ opened at C$121.89 on Friday. Aritzia has a 1-year low of C$79.40 and a 1-year high of C$174.52. The stock’s fifty day simple moving average is C$129.29 and its 200 day simple moving average is C$138.13. The company has a current ratio of 1.39, a quick ratio of 0.19 and a debt-to-equity ratio of 76.35. The stock has a market cap of C$13.97 billion, a PE ratio of 31.83, a price-to-earnings-growth ratio of 1.19 and a beta of 2.18.

Analyst Ratings Changes

A number of research analysts have weighed in on ATZ shares. UBS Group raised their price target on Aritzia from C$189.00 to C$204.00 and gave the company a “buy” rating in a research note on Friday, June 26th. Desjardins set a C$180.00 target price on shares of Aritzia and gave the stock a “buy” rating in a report on Tuesday. Ventum Financial increased their price target on shares of Aritzia from C$180.00 to C$186.00 and gave the company a “neutral” rating in a research note on Friday, July 10th. TD boosted their price objective on shares of Aritzia from C$183.00 to C$200.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, Stifel Nicolaus upped their target price on shares of Aritzia from C$180.00 to C$190.00 and gave the company a “buy” rating in a report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of C$179.00.

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Aritzia Company Profile

(Get Free Report)

Aritzia Inc is an integrated design house of exclusive fashion brands. It designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. The category of products offered by the firm is blouses, T-shirts, pants, dresses, sweaters, jackets and coats, skirts, shorts, jumpsuits, and accessories. Its geographical segments include Canada and the United States. The company generates the majority of revenue from Retail, followed by eCommerce.

Further Reading

Earnings History for Aritzia (TSE:ATZ)

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