Q2 2025 Aritzia Inc Earnings Call Transcript
Key Points
- Aritzia Inc (ATZAF) reported a 15% increase in net revenue to $616 million for the second quarter of fiscal 2025.
- The company saw a 24% increase in sales in the United States, driven by real estate expansion, e-commerce growth, and strong comp growth in existing boutiques.
- E-commerce returned to double-digit growth with a 10% increase in net revenue, driven by increased traffic in the US and a strong response to fall products.
- Aritzia Inc (ATZAF) plans to open an additional 9 to 10 new boutiques and reposition 2 to 3 boutiques by the end of the fiscal year, indicating a strong pipeline for growth.
- The company achieved a 520 basis point increase in gross profit margin to 40.2%, driven by better-than-forecasted markdown and IMU improvements.
- Sales growth in Canada was only 6%, attributed to a softer consumer environment.
- SG&A expenses increased by 17% to $200 million, driven by investments in digital marketing and infrastructure projects.
- Higher freight costs partially offset the gross profit margin improvements.
- The company is facing challenges with construction timelines for flagship store openings, which may impact the timing of revenue recognition.
- Aritzia Inc (ATZAF) is navigating a more challenging macro environment in Canada, which is expected to impact revenue growth in the back half of the year.
Thank you for standing by. This is the conference operator. Welcome to Aritzia's second quarter 2025 earnings conference call. (Operator Instructions)
I will now turn the conference over to Beth Reed, Vice President, Investor Relations. Please go ahead.
Good afternoon, and thanks for joining Aritzia's second 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, forecasts or projections expressed by the forward-looking information.
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