Aritzia (TSX:ATZ) is a Vancouver-based company that designs and sells apparels and accessories for
women in North America. Shares of this clothing stock have dropped 4.8% in 2022 as of mid-afternoon
trading on October 13. The stock has jumped 24% in the year-over-year period.
This company released its second quarter fiscal 2023 results on October 12. Aritzia delivered net
revenue growth of 50% to $525 million. It was bolstered by very strong sales growth, particularly in the
United States. Meanwhile, its e-commerce business in North America delivered 33% growth.
Adjusted net income was reported at 50.6 million or $0.44 per diluted share – up from $44.4 million or
$0.39 in the second quarter of fiscal 2022. Meanwhile, adjusted EBITDA climbed 13% year-over-year to
$82.6 million. Gross profit jumped 41% to $220 million. That was up from $156 million in the previous
year.
The value of Aritzia’s inventory shot up 150% year-over-year to $455 million in the second quarter of
fiscal 2023. Aritzia significantly boosted its inventories this year in response to increased demand and in
a bid to meet sales targets. This strategy has seemingly paid off judging by the strong first half of this
fiscal year. Indeed, adjusted EBITDA in the first six months of fiscal 2023 increased 19% year-over-year to
$113 million.
Shares of Aritzia are still trading in favourable value territory compared to its industry peers with a price-
to-earnings ratio of 33. I’m still looking to ride the wave in this top clothing stock.
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