Q3 2025 Aritzia Inc Earnings Call Transcript
Key Points
- Aritzia Inc (ATZAF) reported a 16% increase in net revenue for the third quarter, driven by strong e-commerce momentum and geographic expansion.
- The company achieved record-breaking sales during the Black Fiveday event, with nearly 40% of stores reaching all-time sales records.
- Net revenue in the United States increased by 27% in the third quarter, showcasing the brand's growing popularity and successful expansion efforts.
- Aritzia Inc (ATZAF) opened 11 new and repositioned boutiques in the last 12 months, including flagship locations in key markets like SoHo and Chicago.
- 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.
- Net revenue in Canada decreased by 0.6% from the previous year, indicating challenges in the Canadian market.
- The company faced an 80-basis-point headwind from higher freight costs, impacting overall profitability.
- 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.
- Despite strong performance, the company remains cautious about macroeconomic challenges, particularly in Canada.
- The repositioning of the Chicago flagship faced complex construction issues, resulting in a longer payback period compared to other locations.
Thank you for standing by. This is the conference operator. Welcome to Aritzia's third-quarter 2025 earnings conference call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. (Operator Instructions)
I will now turn the conference over to Beth Reed, Vice President, Investor Relations. Please go ahead.
Thank you, and thanks for joining Aritzia's third-quarter fiscal 2025 earnings call. On the call today, I'm joined by Jennifer Wong, our Chief Executive Officer; and Todd Ingledew, our Chief Financial Officer.
As a reminder, please note that remarks on this call may include our expectations, future plans, and intentions that may constitute forward-looking information. Such forward-looking information is based on estimates and assumptions made by management regarding, among other things, general, economic, and geopolitical conditions as well as the competitive environment.
Actual results may differ materially from the conclusions,
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