The gross profit margin was 45.8 per cent, compared to 41.5 per cent in Q3 2024. The increase in gross profit margin of approximately 430 basis points (bps), Aritzia said in a press release.
Aritzia has reported net revenue of CAD 728.7 million (~$505.3 million) in Q3 FY25, up 11.5 per cent YoY, with US revenue rising 23.6 per cent and Canada falling 0.6 per cent.
Gross profit grew 23.1 per cent to CAD 333.5 million (~231.2 million).
YTD revenue reached CAD 1.8 billion (~$1.3 billion), up 11.7 per cent.
FY25 revenue is forecast at CAD 2.67-2.69 billion (~$1.85-1.86 billion).
Meanwhile, selling, general and administrative (SG&A) expenses as a percentage of net revenue increased 90 bps to 29.6 per cent from 28.7 per cent in Q3 2024. The adjusted EBITDA increased 48.7 per cent to CAD 136.4 million. The net income increased 71.9 per cent to CAD 74.1 million, or 10.2 per cent as a percentage of net revenue. Net income per diluted share was CAD 0.63 per share, compared to CAD 0.38 per share in Q3 FY24.
In the United States, net revenue increased 23.6 per cent to CAD 403.7 million, compared to CAD 326.6 million in Q3 FY24. Net revenue in Canada decreased 0.6 per cent YoY to CAD 325.0 million.
The adjusted net income of the company increased by 57.5 per cent to CAD 83.0 million and adjusted net income per diluted share was CAD 0.71 per share, compared to CAD 0.47 per share in the same period last fiscal.
“Our strong performance in the third quarter of fiscal 2025 underscores the progress we have made across key areas of our business. We delivered a 12 per cent increase in net revenue compared to the third quarter of Fiscal 2024, as we drove accelerated momentum in e-commerce and executed on our real estate expansion strategy, including the opening of two brand-propelling flagships, one in SoHo and one on Michigan Avenue, said Jennifer Wong, chief executive officer at Aritzia Inc.
“We are particularly pleased with the outstanding performance of our business in the United States where net revenue increased 24 per cent, illustrating the strength of the Aritzia brand and growing affinity for our Everyday Luxury offering. We also continued to meaningfully improve our Adjusted EBITDA margin, with a focus on regaining our historical levels in the high teens,” added Wong.
Year-to-date (YTD) financial
The net revenue of the year-to-date (YTD) for the 9-month period ending December 1, 2024, increased by 11.7 per cent to CAD 1.8 billion (~$1.3 billion), compared to CAD 1.7 billion in YTD 2024. Comparable sales growth was 5.3 per cent, and retail net revenue increased by 12.3 per cent to CAD 1.3 billion, compared to CAD 1.1 billion in YTD 2024.
In the United States, net revenue increased by 20.6 per cent YoY to CAD 1.0 billion. Net revenue in Canada increased 2.0 per cent YoY to CAD 809.2 million.
The net revenue for e-commerce segment increased 10.2 per cent YoY to CAD 573.0 million primarily driven by inventory optimisation and traffic growth in the United States, fuelled by the company’s investments in digital marketing, added the release.
The gross profit of the company increased by 25.5 per cent YoY to CAD 800.5 million. Gross profit margin was 43.4 per cent compared to 38.6 per cent in YTD 2024.
SG&A expenses increased 15.5 per cent to CAD 591.4 million, compared to CAD 511.9 million in YTD 2024. SG&A expenses were 32.1 per cent of net revenue compared to 31.0 per cent in YTD 2024.
The net income of the company was CAD 108.1 million, an increase of 98.2 per cent YoY, and net income per diluted share was CAD 0.93, an increase of 93.8 per cent, compared to CAD 0.48 per share in YTD 2024.
Outlook
For the fourth quarter (Q4) ending February 2025, Aritzia expects net revenue in the range of CAD 830-850 million. This represents growth of approximately 22-25 per cent or growth of approximately 28-31 per cent excluding the 53rd week in the fourth quarter last fiscal. The company also expects gross profit margin to increase approximately 400 bps and SG&A as a percentage of net revenue to decrease approximately 100-200 bps for the fourth quarter compared to Q4 of FY24.
For fiscal 2025, the company forecasts net revenue in the range of CAD2.67-2.69 billion (~$1.85-1.86 billion), representing growth of approximately 15 per cent from FY24 (excluding the 53rd week in FY24, this represents growth of approximately 16 per cent to 17 per cent). It also expects gross profit margin to increase approximately 450 bps compared to FY24.
Fibre2Fashion News Desk (SG)
