Canada's Aritzia Q3 adjusted EPS beats estimates, partly helped by e-commerce growth

Overview

• Fashion retailer's fiscal Q3 revenue rose 42.8%, driven by digital and boutique growth

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Adjusted net income for fiscal Q3 beat analyst expectations

Outlook

• Aritzia expects Q4 net revenue between C$1.100 bln and C$1.125 bln

• Company anticipates FY 2026 net revenue of C$3.615 bln to C$3.640 bln

• Aritzia projects FY 2026 adjusted EBITDA margin of 16.5% to 17.0%

Result Drivers

• DIGITAL INITIATIVES - Launch of mobile app and digital marketing investments drove e-commerce revenue growth

• US EXPANSION - 54% increase in US net revenue attributed to real estate expansion and e-commerce growth

• GEOGRAPHIC EXPANSION - New boutique openings and repositioning contributed to retail revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Aritzia Inc is C$132.00, about 6.6% above its January 7 closing price of C$123.80

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nCNWWKGM0a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.