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.
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