- Adjusted EPS Performance: Aritzia’s adjusted EPS for the fourth quarter reached C$0.83, significantly surpassing last year’s C$0.34 and outperforming market estimates of C$0.70.
- Net Revenue Growth: The company’s net revenue increased by 31% year-over-year to C$895.1 million, exceeding the forecast of C$846 million.
- E-commerce Success: E-commerce revenue saw a remarkable 42% increase year-over-year to C$378.1 million, outperforming the expected C$314.8 million.
- Retail Revenue: Retail revenue rose by 24% year-over-year to C$517.1 million, slightly below the projected C$529.5 million.
- Adjusted EBITDA Growth: Adjusted EBITDA more than doubled, reaching C$160.9 million compared to last year’s C$72.5 million, exceeding the estimate of C$131.4 million.
- Comparable Sales Improvement: Comparable sales increased by 26%, a significant improvement from the previous year’s decline of 3%.
- Store Expansion: The ending store count rose to 130, a 9.2% increase year-over-year, just shy of the estimated 131 stores.
- Gross Profit Margin and SG&A Forecast: The company anticipates a gross profit margin increase of approximately 200 basis points and a decrease in SG&A as a percentage of net revenue by approximately 100 basis points for the first quarter of Fiscal 2026.
- Adjusted EBITDA Outlook: It’s expected to be around 14% of net revenue for the first quarter of Fiscal 2026.
- Capital Expenditure Revision: Projected capital cash expenditures from Fiscal 2024 to Fiscal 2027 have increased to around $750 million due to growth in square footage and currency headwinds, up from the prior assumption of $500 million.
- Analyst Consensus: The company has strong investor support with 11 buy ratings, and no hold or sell ratings.
A look at Aritzia Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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
Based on Smartkarma’s Smart Scores, Aritzia Inc. demonstrates a promising long-term outlook. The company receives solid scores across various factors, with a strong momentum score of 4 indicating positive market trends. Aritzia also shows good prospects for growth and resilience with scores of 3 in both categories. These scores suggest that Aritzia is well-positioned to expand its market presence and withstand economic challenges in the future. However, the company lags somewhat in terms of value and dividends, with scores of 2 and 1 respectively. Despite these lower scores, Aritzia’s overall outlook appears optimistic, especially considering its strong momentum and growth potential.
Aritzia Inc. is a women’s fashion retailer known for its wide range of trendy products. The company creates, develops, and sells various fashion items including t-shirts, blouses, sweaters, jackets, pants, dresses, denim, intimates, and accessories. With a customer base in Canada and the United States, Aritzia caters to fashion-conscious individuals seeking stylish and contemporary apparel. The company’s Smart Scores indicate a positive long-term outlook, particularly in areas such as growth and resilience, positioning Aritzia well for potential future success in the competitive fashion industry.
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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