The following is a summary of the Aritzia Inc. (ATZAF) Q3 2025 Earnings Call Transcript:

Financial Performance:

• Aritzia Inc. reported a net revenue increase of 16% in Q3, driven by accelerated momentum in e-commerce and geographic expansion.

• Gross profit margin expanded, with a 430 basis point increase, driven by improvements in Inventory Margin Uplift (IMU), lower markdown rates, and reduced warehousing costs.

• Adjusted EBITDA increased by 49% compared to the previous year, with a margin expansion of 470 basis points.

• For Q4, revenue is expected to grow 22% to 25%, with gross profit margin anticipated to increase by approximately 400 basis points.

Business Progress:

• Aritzia opened several new boutiques, including a flagship on Michigan Avenue in Chicago and a repositioned flagship on 5th Avenue in Manhattan, contributing to an expansive square footage increase and elevated brand presence.

• The company highlighted strong results from their Black Fiveday event and saw significant traffic growth in the U.S. due to effective full-funnel marketing strategies.

Opportunities:

• Continued expansion in the U.S. market, fueling significant revenue growth and a favorable customer response.

• Further investment in digital marketing and advancements in e-commerce, including a new website and a mobile app, expected to enhance customer digital experience.

Risks:

• Potential risks associated with global economic conditions and the competitive environment could materially affect the company's future performance.

More details: ARITZIA INC IR

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