The following is a summary of the Aritzia, Inc. (ATZAF) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Aritzia reported Q4 net revenue of $682 million, an increase of 7% compared to Q4 of 2023.

• Comparable sales declined 3% due to a 32% increase in Q4 of last year.

• U.S. net revenue increased by 9% while Canadian sales grew 4%.

• E-commerce net revenue decreased 3%, driven by lower volume of markdown sales.

• Gross profit was $261 million, up 8% from last year.

• SG&A expenses were up 15%, driven by investments in talent and digital marketing initiatives.

• Adjusted EBITDA for Q4 was $73 million, down 9% from last year.

• Inventory improved, down 27% compared to end of Q4 last year.

Business Progress:

• Aritzia opened 3 new boutiques and one repositioned location and plans to open 11 to 13 more in fiscal 2025, representing a growth of 20% to 25% in total square footage.

• The TENA brand, Golden, expanded to cater to more active-wear needs.

• Distribution network optimization continued with a new Ontario distribution centre ramping up.

• Marketing efforts have seen an increased focus, particularly in the U.S, to increase awareness and drive client engagement.

• A significant margin improvement of 400 to 450 basis points is expected, primarily driven by distribution costs from the new distribution center.

• The company is enhancing its e-commerce platform with increased digital marketing and introduction of buy-online-pickup-in-store and ship-from-store services, aiming to tap into full inventory and reduce distribution costs.

• New product launches, like the Goldman and sweat fleece, are performing well and meeting sales targets.

• The company forecasts net revenue in the range of 2.52 to 2.62 billion for fiscal 2025, a growth of 8% to 12% from fiscal 2024.

More details: ARITZIA INC IR

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