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Highlights
- Aritzia Inc (TSX:ATZ), one of the largest fashion companies in Canada, released its latest financial results for the third quarter of fiscal year 2022 on Wednesday, January 12.
- The Vancouver, British Columbia-headquartered clothing retailer reported a profit of C$ 64.9 million in the latest quarter, which was a surge of 112.9 per cent from C$ 30.5 million in the third quarter of FY2021.
- Stocks of Aritzia catapulted by almost 100 per cent in the last one year.
Aritzia Inc (TSX:ATZ), one of the largest fashion companies in Canada, released its latest financial results for the third quarter of fiscal year 2022 on Wednesday, January 12.
The Vancouver, British Columbia-headquartered clothing retailer reported a profit of C$ 64.9 million in the latest quarter, which was a surge of 112.9 per cent from that of C$ 30.5 million in the third quarter of FY2021.
Let us closely glance at Aritzia's overall performance in Q3 FY2022.
Aritzia’s (TSX: ATZ) financial performance in Q3 FY2022
The fully-integrated fashion house saw its net revenue surge by 62.9 per cent year-over-year (YoY) to C$ 453.3 million in Q3 FY2022, up from C$ 278.3 million a year ago.
This net revenue increase, Aritzia said, was primarily due to a sales growth of 115.1 per cent YoY in the United States.
Its e-commerce revenue also soared by 46.9 per cent to around C$ 148 million in the third quarter of FY2022.
Its retail business saw a revenue increment of 72 per cent YoY to C$ 177.5 million in the latest quarter, mainly due to comparable and new boutiques in the United States and growing comparable sales in Canada.
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With a price-to-earnings (P/E) ratio of 52.7, the company posted adjusted EBITDA of C$ 109.3 million in Q3 FY2022, which was 100.3 per cent up from the previous-year quarter.
Image source: ©2022 Kalkine Media®
Despite supply chain challenges, Aritzia managed to hold a healthy inventory of C$ 176.9 million at the end of Q3 FY2022.
In addition, the Canadian apparel and accessory company also had cash and cash equivalents of C$ 305.9 million at the end of the third quarter of FY2022.
Aritzia's stock performance
Stocks of Aritzia catapulted by almost 100 per cent in the last one year.
The clothing stock closed at C$ 49.51 apiece on Wednesday, January 12, eight per cent below its new 52-week high of C$ 53.87 it clocked on January 4 this year.
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Bottomline
Aritzia has updated its outlook, where it expects a net revenue growth of 40 to 50 per cent YoY to a range of C$ 375 to C$ 400 million in the fourth quarter of FY2022.
Additionally, Aritzia said that it is set to launch a new Spring collection next month, in February.
