January 9, 2025
VANCOUVER, BC , Jan. 9, 2025 /CNW/ - Aritzia Inc. (TSX: ATZ) ("Aritzia", the "Company", "we" or "our"), a design house with an innovative global platform offering Everyday Luxury online and in its boutiques, today announced its financial results for the third quarter ended December 1, 2024 ("Q3 2025").
"Our strong performance in the third quarter of Fiscal 2025 underscores the progress we've made across key areas of our business. We delivered a 12% increase in net revenue compared to the third quarter of Fiscal 2024, as we drove accelerated momentum in eCommerce and executed on our real estate expansion strategy, including the opening of two brand-propelling flagships, one in SoHo and one on Michigan Avenue. We are particularly pleased with the outstanding performance of our business in the United States where net revenue increased 24%, 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," said Jennifer Wong , Chief Executive Officer.
"Our momentum has continued into the fourth quarter, as a strong inventory position and positive client response to our Winter assortment helped drive record-breaking sales over the holiday period. Looking to the future, we remain steadfast in advancing our key growth levers. We have several initiatives underway to help fuel an ongoing acceleration in eCommerce trends, as well as another exciting pipeline of boutiques planned for the next fiscal year. We still have a long runway for growth in the United States and remain confident that our plans for the business will generate long-term profitable growth," concluded Ms. Wong.
Third Quarter Highlights
For Q3 2025, compared to Q3 2024 1 :
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___________ |
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1 All references in this press release to "Q3 2025" are to our 13-week period ended December 1, 2024, to "YTD 2025" are to our 39-week period ended December 1, 2024, to "Q3 2024" are to our 13-week period ended November 26, 2023, to "YTD 2024" are to our 39-week period ended November 26, 2023, to "Fiscal 2024" are to our 53-week period ended March 3, 2024, to "Fiscal 2025" are to our 52-week period ending March 2, 2025, to "Fiscal 2026" are to our 52-week period ending March 1, 2026, and to "Fiscal 2027" are to our 52-week period ending February 28, 2027. |
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2 Certain metrics, including those expressed on an adjusted or comparable basis, are non-IFRS measures or supplementary financial measures. See "Comparable Sales, "Non-IFRS Measures and Retail Industry Metrics" and "Selected Financial Information". |
Third Quarter Results Compared to Q3 2024
|
(unaudited, in thousands of Canadian dollars, unless
|
Q3 2025 |
Q3 2024 |
Change |
|||
|
|
|
% of net
|
|
% of net
|
% |
% pts |
|
Retail net revenue |
$ 486,559 |
66.8 % |
$ 441,056 |
67.5 % |
10.3 % |
|
|
eCommerce net revenue |
242,142 |
33.2 % |
212,468 |
32.5 % |
14.0 % |
|
|
Net revenue |
$ 728,701 |
100.0 % |
$ 653,524 |
100.0 % |
11.5 % |
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ 333,485 |
45.8 % |
$ 270,937 |
41.5 % |
23.1 % |
4.3 % |
|
|
|
|
|
|
|
|
|
Selling, general and administrative ("SG&A") |
$ 215,649 |
29.6 % |
$ 187,373 |
28.7 % |
15.1 % |
0.9 % |
|
|
|
|
|
|
|
|
|
Net income |
$ 74,068 |
10.2 % |
$ 43,093 |
6.6 % |
71.9 % |
3.6 % |
|
|
|
|
|
|
|
|
|
Net income per diluted share |
$ 0.63 |
|
$ 0.38 |
|
65.8 % |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA 2 |
$ 136,428 |
18.7 % |
$ 91,763 |
14.0 % |
48.7 % |
4.7 % |
|
|
|
|
|
|
|
|
|
Adjusted Net Income 2 |
$ 83,000 |
11.4 % |
$ 52,701 |
8.1 % |
57.5 % |
3.3 % |
|
|
|
|
|
|
|
|
|
Adjusted Net Income per Diluted Share 2 |
$ 0.71 |
|
$ 0.47 |
|
51.1 % |
|
Net revenue increased 11.5% to $728.7 million , compared to $653.5 million in Q3 2024. Comparable sales 2 grew 6.6%, as all channels and all geographies comped positively. Trends accelerated sequentially each month of the quarter. Net revenue growth in the third quarter of Fiscal 2025 was impacted by the following two factors which contributed approximately $25 million in the third quarter of Fiscal 2024:
In the United States , net revenue increased 23.6% to $403.7 million , compared to $326.6 million in Q3 2024. This was primarily driven by further acceleration in eCommerce growth and the Company's real estate expansion strategy. Net revenue in Canada decreased 0.6% to $325.0 million , compared to $326.9 million in Q3 2024. The decline in revenue growth in Canada was driven by the shift of the annual warehouse sale and the occurrence of the Digital Archive Sale in Q3 2024.
|
____________ |
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3 There were four Reigning Champ boutiques as at December 1, 2024 and November 26, 2023 which are excluded from the boutique count. There was one Aritzia boutique closure in Fiscal 2024. |
Gross profit increased 23.1% to $333.5 million , compared to $270.9 million in Q3 2024. Gross profit margin 2 was 45.8%, compared to 41.5% in Q3 2024. The increase in gross profit margin of approximately 430 bps was primarily driven by IMU improvements, lower markdowns, lower warehousing costs and savings from the Company's smart spending initiative, partially offset by higher freight costs.
SG&A expenses increased 15.1% to $215.6 million , compared to $187.4 million in Q3 2024. SG&A expenses were 29.6% of net revenue, compared to 28.7% in Q3 2024. The increase in SG&A expenses was primarily driven by variable selling costs associated with the increase in net revenue, as well as investments in digital marketing, flagship locations, infrastructure projects and technology initiatives.
Net income was $74.1 million , an increase of 71.9% compared to $43.1 million in Q3 2024, primarily attributable to the factors described above as well as an increase in other income due to unrealized foreign exchange gains. Net income per diluted share was $0.63 per share, an increase of 65.8% compared to $0.38 per share in Q3 2024.
Adjusted EBITDA 2 was $136.4 million or 18.7% of net revenue, an increase of 48.7% compared to $91.8 million or 14.0% of net revenue in Q3 2024.
Adjusted Net Income 2 was $83.0 million , an increase of 57.5% compared to $52.7 million in Q3 2024. Adjusted Net Income per Diluted Share 2 was $0.71 per share, an increase of 51.1% compared to $0.47 per share in Q3 2024.
Cash and cash equivalents totaled $207.0 million , compared to $140.8 million at the end of Q3 2024.
Inventory at the end of Q3 2025 was $462.0 million , an increase of 16.4%, compared to $397.0 million at the end of Q3 2024.
Capital cash expenditures (net of proceeds from lease incentives) 2 were $81.9 million , compared to $41.4 million in Q3 2024. The capital cash expenditures primarily consist of capital investments in new and repositioned boutiques.
YTD 2025 Compared to YTD 2024
|
(unaudited, in thousands of Canadian dollars, unless
|
YTD 2025 |
YTD 2024 |
Change |
|||
|
|
|
% of net
|
|
% of net
|
% |
% pts |
|
Retail net revenue |
$ 1,270,023 |
68.9 % |
$ 1,130,640 |
68.5 % |
12.3 % |
|
|
eCommerce net revenue |
572,971 |
31.1 % |
519,740 |
31.5 % |
10.2 % |
|
|
Net revenue |
$ 1,842,994 |
100.0 % |
$ 1,650,380 |
100.0 % |
11.7 % |
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ 800,515 |
43.4 % |
$ 637,734 |
38.6 % |
25.5 % |
4.8 % |
|
|
|
|
|
|
|
|
|
SG&A |
$ 591,441 |
32.1 % |
$ 511,948 |
31.0 % |
15.5 % |
1.1 % |
|
|
|
|
|
|
|
|
|
Net income |
$ 108,148 |
5.9 % |
$ 54,573 |
3.3 % |
98.2 % |
2.6 % |
|
|
|
|
|
|
|
|
|
Net income per diluted share |
$ 0.93 |
|
$ 0.48 |
|
93.8 % |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA 2 |
$ 245,472 |
13.3 % |
$ 144,511 |
8.8 % |
69.9 % |
4.5 % |
|
|
|
|
|
|
|
|
|
Adjusted Net Income 2 |
$ 132,524 |
7.2 % |
$ 67,334 |
4.1 % |
96.8 % |
3.1 % |
|
|
|
|
|
|
|
|
|
Adjusted Net Income per Diluted Share 2 |
$ 1.14 |
|
$ 0.59 |
|
93.2 % |
|
|
|
|
|
|
|
|
|
Net revenue increased 11.7% to $1.8 billion , compared to $1.7 billion in YTD 2024. Comparable sales 2 growth was 5.3%. Results continue to be driven by performance in the United States , where net revenue increased 20.6% to $1.0 billion , compared to $857.4 million in YTD 2024. Net revenue in Canada increased 2.0% to $809.2 million , compared to $793.0 million in YTD 2024.
Gross profit increased 25.5% to $800.5 million , compared to $637.7 million in YTD 2024. Gross profit margin 2 was 43.4% compared to 38.6% in YTD 2024. The increase in gross profit margin of approximately 480 bps was primarily driven by lower markdowns, IMU improvements and lower warehousing costs and savings from the Company's smart spending initiative, partially offset by higher freight costs.
SG&A expenses increased 15.5% to $591.4 million , compared to $511.9 million in YTD 2024. SG&A expenses were 32.1% of net revenue compared to 31.0% in YTD 2024. The increase in SG&A expenses was primarily driven by investments in digital marketing to protect and propel the Aritzia brand, as well as investments in infrastructure projects and technology initiatives to support the Company's growth.
Net income was $108.1 million , an increase of 98.2% compared to $54.6 million in YTD 2024, primarily attributable to the factors described above as well as an increase in other income, partially offset by an increase in stock-based compensation expense mainly due to the effect of mark-to-market changes. Net income per diluted share was $0.93 , an increase of 93.8%, compared to $0.48 per share in YTD 2024.
Adjusted EBITDA 2 was $245.5 million , or 13.3% of net revenue, an increase of 69.9%, compared to $144.5 million , or 8.8% of net revenue in YTD 2024.
Adjusted Net Income 2 was $132.5 million , an increase of 96.8%, compared to $67.3 million in YTD 2024. Adjusted Net Income per Diluted Share 2 was $1.14 , an increase of 93.2%, compared to $0.59 in YTD 2024.
Capital cash expenditures (net of proceeds from lease incentives) 2 were $187.2 million , compared to $113.6 million in YTD 2024. The capital cash expenditures primarily consist of capital investments in new and repositioned boutiques.
Outlook
Aritzia expects the following for the fourth quarter of Fiscal 2025:
Based on quarter-to-date trends, Aritzia expects net revenue in the range of $830 million to $850 million . This represents growth of approximately 22% to 25% or growth of approximately 28% to 31% excluding the 53rd week in the fourth quarter last year.
The Company expects gross profit margin to increase approximately 400 bps and SG&A as a percentage of net revenue to decrease approximately 100 bps to 200 bps for the fourth quarter of Fiscal 2025 compared to the fourth quarter of Fiscal 2024.
Aritzia expects the following for Fiscal 2025:
The foregoing outlook is based on management's current strategies and may be considered forward-looking information under applicable securities laws. Such outlook is based on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions and the competitive environment. This outlook is intended to provide readers management's projections for the Company as of the date of this press release. Readers are cautioned that actual results may vary materially from this outlook and that the information in the outlook may not be appropriate for other purposes. See also the "Forward-Looking Information" section of this press release and the "Forward-Looking Information" and "Risk Factors" sections of our Management's Discussion & Analysis for the third quarter of Fiscal 2025 dated January 9, 2025 (the "Q3 2025 MD&A"), for Fiscal 2024 dated May 2, 2024 (the "Fiscal 2024 MD&A") and the Company's annual information form for Fiscal 2024 dated May 2, 2024 (the "Fiscal 2024 AIF").
In addition, a discussion of the Company's long-term financial plan is contained in the Company's press release dated October 27, 2022 , "Aritzia Presents its Fiscal 2027 Strategic and Financial Plan, Powering Stronger". This press release is available on the System for Electronic Data Analysis and Retrieval + ("SEDAR+") at www.sedarplus.com and on our website at investors.aritzia.com.
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____________ |
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4 Compared to the Company's previous outlook for net revenue of $2.54 billion to $2.60 billion, representing growth of approximately 9% to 11% |
|
5 Compared to the Company's previous outlook of 12 to 13 new boutiques and 3 to 4 boutique repositions |
Normal Course Issuer Bid ("NCIB")
On January 18, 2024 , the Company announced that the Toronto Stock Exchange ("TSX") had accepted its notice of intention to proceed with an NCIB ("2024 NCIB") to repurchase and cancel up to 3,515,740 of its subordinate voting shares, representing approximately 5% of the public float of 70,314,808 subordinate voting shares, during the 12-month period commencing January 22, 2024 and ending January 21, 2025 .
On February 21, 2024 , the Company announced it had entered into an automatic share purchase plan ("ASPP") with a designated broker for the purpose of permitting the Company to purchase its subordinate voting shares under the 2024 NCIB during predetermined blackout periods. The Company plans to file a notice of intention with the TSX to renew its NCIB in January 2025 and enter into an ASPP thereafter.
Between January 22, 2024 and January 8, 2025 , 134,200 subordinate voting shares were repurchased for cancellation at an average price of $44.00 per subordinate voting share for total cash consideration of $5.9 million (including commissions) under the 2024 NCIB.
Conference Call Details
A conference call to discuss the Company's third quarter results is scheduled for Thursday, January 9, 2025 , at 1:30 p.m. PT / 4:30 p.m. ET . To participate, please dial 1-844-763-8274 ( North America toll-free) or 1-647-484-8814 ( Toronto and overseas long-distance). The call is also accessible via webcast at https://investors.aritzia.com/events-and-presentations/ . A recording will be available shortly after the conclusion of the call. To access the replay, please dial 1-855-669-9658 and the access code 5238527. An archive of the webcast will be available on Aritzia's website.
About Aritzia
Aritzia is a design house with an innovative global platform. We are creators and purveyors of Everyday Luxury, home to an extensive portfolio of exclusive brands for every function and individual aesthetic. We're about good design, quality materials and timeless style — all with the wellbeing of our People and Planet in mind.
Founded in 1984 in Vancouver, Canada , we pride ourselves on creating immersive, highly personalized shopping experiences at aritzia.com and in our 125+ boutiques throughout North America — for everyone, everywhere.
Our Approach
Aritzia means style, not trend, and quality over everything. We treat each in-house label as its own atelier, united by premium fabrics, meticulous construction and an of-the-moment point of view. We handpick fabrics from the world's best mills for their feel, function and ability to last. We obsess over proportion, fit and that just-right silhouette. From hand-painted prints to the art of pocket placement, our innovative design studio considers and reconsiders each detail to create essentials you'll reach for again, and again, and again.
Everyday Luxury. To Elevate Your World.™
Comparable Sales
Comparable sales is a retail industry metric used to explain our total combined revenue growth (decline) (in absolute dollars or percentage terms) in eCommerce and established boutiques.
Non-IFRS Measures and Retail Industry Metrics
This press release makes reference to certain non-IFRS measures and certain retail industry metrics. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS financial measures including "EBITDA", "Adjusted EBITDA", and "Adjusted Net Income"; non-IFRS ratios including "Adjusted Net Income per Diluted Share", "Adjusted EBITDA as a percentage of net revenue", and "Adjusted Net Income as a percentage of net revenue"; and capital management measures including "capital cash expenditures (net of proceeds from lease incentives)" and "free cash flow." This press release also makes reference to "gross profit margin" and "comparable sales" which are commonly used operating metrics in the retail industry but may be calculated differently by other retailers. Gross profit margin and comparable sales are considered supplementary financial measures under applicable securities laws. These non-IFRS measures and retail industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures and retail industry metrics in the evaluation of issuers. Our management also uses non-IFRS measures and retail industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Certain information about non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures is found in the Q3 2025 MD&A and is incorporated by reference. This information is found in the sections entitled "How We Assess the Performance of our Business", "Non-IFRS Measures and Retail Industry Metrics" and "Selected Financial Information" of the Q3 2025 MD&A which is available under the Company's profile on SEDAR+ at www.sedarplus.com . Reconciliations for each non-IFRS financial measure can be found in this press release under the heading "Selected Financial Information".
Forward-Looking Information
Certain statements made in this document may constitute forward-looking information under applicable securities laws. Statements containing forward-looking information are neither historical facts nor assurances of future performance, but instead, provide insights regarding management's current expectations and plans and allows investors and others to better understand the Company's anticipated business strategy, financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Although the Company believes that the forward-looking statements are based on information, assumptions and beliefs that are current, reasonable, and complete, such information is necessarily subject to a number of business, economic, competitive and other risk factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information.
Specific forward-looking information in this document include, but are not limited to, statements relating to:
Particularly, information regarding our expectations of future results, targets, performance achievements, intentions, prospects, opportunities or other characterizations of future events or developments or the markets in which we operate is forward-looking information. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or positive or negative variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur", "continue", or "be achieved".
Forward-looking statements are based on information currently available to management and on estimates and assumptions, including assumptions about future economic conditions and courses of action. Examples of material estimates and assumptions and beliefs made by management in preparing such forward looking statements include, but are not limited to:
In addition to the assumptions noted above, specific assumptions in support of our Fiscal 2025 outlook include:
Given the current challenging operating environment, there can be no assurances regarding: (a) the macroeconomic impacts on Aritzia's business, operations, labour force, supply chain performance and growth strategies; (b) Aritzia's ability to mitigate such impacts, including ongoing measures to enhance short-term liquidity, contain costs and safeguard the business; (c) general economic conditions and impacts to consumer discretionary spending and shopping habits (including impacts from changes to interest rate environments); (d) credit, market, currency, commodity market, inflation, interest rates, global supply chains, operational, and liquidity risks generally; (e) geopolitical events including no unforeseen changes in applicable duties, tariffs and trade restrictions; (f) public health related limitations or restrictions that may be placed on servicing our clients or the duration of any such limitations or restrictions; and (g) other risks inherent to Aritzia's business and/or factors beyond its control which could have a material adverse effect on the Company.
Many factors could cause our actual results, performance, achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of our Q3 2025 MD&A and Fiscal 2024 MD&A, and the Company's Fiscal 2024 AIF which are incorporated by reference into this document. A copy of the Q3 2025 MD&A, the Fiscal 2024 MD&A and the Fiscal 2024 AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at www.sedarplus.com .
The Company cautions that the foregoing list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect its results. We operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for management to predict all risks, nor assess the impact of all risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this document represents our expectations as of the date of this document (or as of the date they are otherwise stated to be made) and are subject to change after such date. We disclaim any intention, obligation or undertaking to update or revise any forward-looking information, whether written or oral, as a result of new information, future events or otherwise, except as required under applicable securities laws.
Selected Financial Information
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited, in thousands of Canadian dollars, unless otherwise noted) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
||||
|
|
|
% of net
|
|
% of net
|
|
% of net
|
|
% of net
|
|
Net revenue |
$ 728,701 |
100.0 % |
$ 653,524 |
100.0 % |
$ 1,842,994 |
100.0 % |
$ 1,650,380 |
100.0 % |
|
Cost of goods sold |
395,216 |
54.2 % |
382,587 |
58.5 % |
1,042,479 |
56.6 % |
1,012,646 |
61.4 % |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
333,485 |
45.8 % |
270,937 |
41.5 % |
800,515 |
43.4 % |
637,734 |
38.6 % |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
215,649 |
29.6 % |
187,373 |
28.7 % |
591,441 |
32.1 % |
511,948 |
31.0 % |
|
Stock-based compensation expense |
10,244 |
1.4 % |
9,449 |
1.4 % |
30,997 |
1.7 % |
16,428 |
1.0 % |
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
107,592 |
14.8 % |
74,115 |
11.3 % |
178,077 |
9.7 % |
109,358 |
6.6 % |
|
Finance expense |
12,750 |
1.7 % |
13,637 |
2.1 % |
38,173 |
2.1 % |
36,662 |
2.2 % |
|
Other expense (income) |
(9,918) |
(1.4) % |
(1,726) |
(0.3) % |
(15,409) |
(0.8) % |
(4,809) |
(0.3) % |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
104,760 |
14.4 % |
62,204 |
9.5 % |
155,313 |
8.4 % |
77,505 |
4.7 % |
|
Income tax expense |
30,692 |
4.2 % |
19,111 |
2.9 % |
47,165 |
2.6 % |
22,932 |
1.4 % |
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 74,068 |
10.2 % |
$ 43,093 |
6.6 % |
$ 108,148 |
5.9 % |
$ 54,573 |
3.3 % |
|
|
|
|
|
|
|
|
|
|
|
Other Performance Measures: |
|
|
|
|
|
|
|
|
|
Year-over-year net revenue growth |
11.5 % |
|
4.6 % |
|
11.7 % |
|
5.9 % |
|
|
Comparable sales 6,7 growth (decline) |
6.6 % |
|
0.5 % |
|
5.3 % |
|
(0.2) % |
|
|
Capital cash expenditures (net of proceeds from lease incentives) 7 |
$ (81,948) |
|
$ (41,368) |
|
$ (187,175) |
|
$ (113,575) |
|
|
Free cash flow 7 |
$ 103,996 |
|
$ 171,607 |
|
$ 30,000 |
|
$ 76,631 |
|
NET REVENUE BY GEOGRAPHIC LOCATION
|
(unaudited, in thousands of Canadian dollars) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
|
|
|
|
|
|
United States net revenue |
$ 403,720 |
$ 326,605 |
$ 1,033,776 |
$ 857,355 |
|
Canada net revenue |
324,981 |
326,919 |
809,218 |
793,025 |
|
|
|
|
|
|
|
Net revenue |
$ 728,701 |
$ 653,524 |
$ 1,842,994 |
$ 1,650,380 |
CONSOLIDATED CASH FLOWS
|
(unaudited, in thousands of Canadian dollars) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
|
|
|
|
|
|
Net cash generated from (used in) operating activities |
$ 214,867 |
$ 241,079 |
$ 297,161 |
$ 259,135 |
|
Net cash generated from (used in) financing activities |
(28,170) |
(130,971) |
(56,731) |
(68,901) |
|
Cash used in investing activities |
(85,507) |
(45,344) |
(197,584) |
(135,728) |
|
Effect of exchange rate changes on cash and cash equivalents |
1,834 |
(476) |
884 |
(212) |
|
|
|
|
|
|
|
Change in cash and cash equivalents |
$ 103,024 |
$ 64,288 |
$ 43,730 |
$ 54,294 |
|
_____________ |
|
6 Please see the "Comparable Sales" section above for more details. |
|
7 Please see the "Non-IFRS Measures and Retail Industry Metrics" section above for more details. |
RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME
|
(unaudited, in thousands of Canadian dollars, unless otherwise noted) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA: |
|
|
|
|
|
Net income |
$ 74,068 |
$ 43,093 |
$ 108,148 |
$ 54,573 |
|
Depreciation and amortization |
20,275 |
16,847 |
59,052 |
46,352 |
|
Depreciation on right-of-use assets |
26,459 |
25,524 |
79,690 |
75,358 |
|
Finance expense |
12,750 |
13,637 |
38,173 |
36,662 |
|
Income tax expense |
30,692 |
19,111 |
47,165 |
22,932 |
|
|
|
|
|
|
|
EBITDA |
164,244 |
118,212 |
332,228 |
235,877 |
|
|
|
|
|
|
|
Adjustments to EBITDA: |
|
|
|
|
|
Stock-based compensation expense |
10,244 |
9,449 |
30,997 |
16,428 |
|
Rent impact from IFRS 16, Leases 8 |
(37,634) |
(36,390) |
(114,111) |
(106,270) |
|
Unrealized loss on equity derivatives contracts |
(292) |
390 |
(6,129) |
11,623 |
|
Fair value adjustment of non-controlling interest ("NCI") in exchangeable shares liability |
— |
— |
— |
(15,000) |
|
CYC Design Corporation ("CYC") related costs and other expenses |
(134) |
102 |
2,487 |
1,853 |
|
|
|
|
|
|
|
Adjusted EBITDA |
$ 136,428 |
$ 91,763 |
$ 245,472 |
$ 144,511 |
|
Adjusted EBITDA as a percentage of net revenue |
18.7 % |
14.0 % |
13.3 % |
8.8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ 74,068 |
$ 43,093 |
$ 108,148 |
$ 54,573 |
|
Adjustments to net income: |
|
|
|
|
|
Stock-based compensation expense |
10,244 |
9,449 |
30,997 |
16,428 |
|
Unrealized loss on equity derivatives contracts |
(292) |
390 |
(6,129) |
11,623 |
|
Fair value adjustment of NCI in exchangeable shares liability |
— |
— |
— |
(15,000) |
|
CYC related costs and other expenses |
(134) |
102 |
2,487 |
1,853 |
|
Related tax effects |
(886) |
(333) |
(2,979) |
(2,143) |
|
Adjusted Net Income |
$ 83,000 |
$ 52,701 |
$ 132,524 |
$ 67,334 |
|
Adjusted Net Income as a percentage of net revenue |
11.4 % |
8.1 % |
7.2 % |
4.1 % |
|
Weighted average number of diluted shares outstanding (thousands) |
116,836 |
113,332 |
115,860 |
114,232 |
|
Adjusted Net Income per Diluted Share |
$ 0.71 |
$ 0.47 |
$ 1.14 |
$ 0.59 |
|
8 RENT IMPACT FROM IFRS 16, LEASES |
|
|
|
|
|
(unaudited, in thousands of Canadian dollars) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
|
|
|
|
|
|
Depreciation of right-of-use assets, excluding fair value adjustments |
$ (26,392) |
$ (25,391) |
$ (79,251) |
$ (74,959) |
|
Interest expense on lease liabilities |
(11,242) |
(10,999) |
(34,860) |
(31,311) |
|
|
|
|
|
|
|
Rent impact from IFRS 16, leases |
$ (37,634) |
$ (36,390) |
$ (114,111) |
$ (106,270) |
RECONCILIATION OF COMPARABLE SALES TO NET REVENUE
|
(unaudited, in thousands of Canadian dollars) |
Q3 2025 |
Q3 2024 |
Fiscal 2025 |
Fiscal 2024 |
|
Comparable sales |
$ 660,120 |
$ 573,537 |
$ 1,662,152 |
$ 1,455,304 |
|
Non-comparable sales |
68,581 |
79,987 |
180,842 |
195,076 |
|
|
|
|
|
|
|
Net revenue |
$ 728,701 |
$ 653,524 |
$ 1,842,994 |
$ 1,650,380 |
RECONCILIATION OF CASH USED IN INVESTING ACTIVITIES TO CAPITAL CASH EXPENDITURES (NET OF PROCEEDS FROM LEASE INCENTIVES)
|
(unaudited, in thousands of Canadian dollars) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
Cash used in investing activities |
$ (85,507) |
$ (45,344) |
$ (197,584) |
$ (135,728) |
|
Contingent consideration payout, net relating to the acquisition of CYC |
— |
— |
— |
6,303 |
|
Proceeds from lease incentives |
3,559 |
3,976 |
10,409 |
15,850 |
|
|
|
|
|
|
|
Capital cash expenditures (net of proceeds from lease incentives) |
$ (81,948) |
$ (41,368) |
$ (187,175) |
$ (113,575) |
RECONCILIATION OF NET CASH GENERATED FROM OPERATING ACTIVITIES TO FREE CASH FLOW
|
(unaudited, in thousands of Canadian dollars) |
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
Net cash generated from (used in) operating activities |
$ 214,867 |
$ 241,079 |
$ 297,161 |
$ 259,135 |
|
Interest paid |
1,431 |
2,328 |
3,086 |
5,148 |
|
Proceeds from lease incentives |
3,559 |
3,976 |
10,409 |
15,850 |
|
Repayments of principal on lease liabilities |
(30,354) |
(30,432) |
(83,072) |
(74,077) |
|
Purchase of property, equipment and intangible assets |
(85,507) |
(45,344) |
(197,584) |
(129,425) |
|
|
|
|
|
|
|
Free cash flow |
$ 103,996 |
$ 171,607 |
$ 30,000 |
$ 76,631 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(interim periods unaudited, in thousands of Canadian dollars) |
As at
|
As at March 3, 2024 |
As at November 26, 2023 |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 207,007 |
$ 163,277 |
$ 140,804 |
|
Accounts receivable |
21,379 |
18,473 |
19,759 |
|
Income taxes recoverable |
7,191 |
7,055 |
16,482 |
|
Inventory |
461,990 |
340,145 |
397,002 |
|
Prepaid expenses and other current assets |
52,410 |
37,270 |
34,510 |
|
Total current assets |
749,977 |
566,220 |
608,557 |
|
Property and equipment |
617,458 |
431,365 |
406,887 |
|
Intangible assets |
89,385 |
84,975 |
85,082 |
|
Goodwill |
198,846 |
198,846 |
198,846 |
|
Right-of-use assets |
707,214 |
632,291 |
630,370 |
|
Other assets |
6,131 |
5,164 |
5,422 |
|
Deferred tax assets |
16,169 |
27,272 |
14,938 |
|
|
|
|
|
|
Total assets |
$ 2,385,180 |
$ 1,946,133 |
$ 1,950,102 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ 354,331 |
$ 212,835 |
$ 248,450 |
|
Income taxes payable |
2,096 |
1,606 |
— |
|
Current portion of lease liabilities |
88,718 |
107,322 |
116,889 |
|
Deferred revenue |
136,955 |
81,669 |
95,235 |
|
Total current liabilities |
582,100 |
403,432 |
460,574 |
|
Lease liabilities |
806,092 |
698,564 |
682,761 |
|
Other non-current liabilities |
16,909 |
13,451 |
11,218 |
|
Deferred tax liabilities |
23,157 |
23,191 |
22,067 |
|
Total liabilities |
1,428,258 |
1,138,638 |
1,176,620 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Share capital |
346,165 |
307,737 |
292,911 |
|
Contributed surplus |
103,957 |
96,249 |
92,857 |
|
Retained earnings |
510,053 |
407,337 |
391,950 |
|
Accumulated other comprehensive loss |
(3,253) |
(3,828) |
(4,236) |
|
Total shareholders' equity |
956,922 |
807,495 |
773,482 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ 2,385,180 |
$ 1,946,133 |
$ 1,950,102 |
BOUTIQUE COUNT SUMMARY 3
|
|
Q3 2025 |
Q3 2024 |
YTD 2025 |
YTD 2024 |
|
|
|
|
|
|
|
Number of boutiques, beginning of period |
122 |
116 |
119 |
114 |
|
New boutiques |
5 |
1 |
8 |
3 |
|
|
|
|
|
|
|
Number of boutiques, end of period |
127 |
117 |
127 |
117 |
|
Repositioned boutiques |
1 |
1 |
2 |
2 |
View original content to download multimedia: https://www.prnewswire.com/news-releases/aritzia-reports-third-quarter-fiscal-2025-financial-results-302347508.html
SOURCE Aritzia Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2025/09/c5951.html
