Aritzia Inc. (TSX: ATZ) stock is soaring after the company reported its most recent earnings numbers. On Jan. 9, the company released its third-quarter results for the period ending Dec. 1, 2024.
During the quarter, the company’s net sales rose by 11.5% to just under $729 million and comparable sales growth was an impressive 6.6%. What was even more impressive, however, was the 71.9% increase in net income, which totaled $74 million.
Aritzia has been experiencing strong growth due to its e-commerce business and U.S. market expansion. It wasn’t all good news, however, as revenue in Canada declined by 0.6% to $325 million. In the U.S., sales jumped by 23.6% to $404 million.
Aritzia continues to expect more growth in the fourth quarter, projecting sales to come in within a range of $830 million and $850 million. Next fiscal year, it also plans to launch an “enhanced” international e-commerce site as well as a mobile app, which should help fuel even more growth down the road.
Investors were pleased with Aritzia’s numbers and the outlook for the business as the results lifted the stock to new highs last week.
Currently, Aritzia’s stock is trading around 24 times its estimated future profits (based on analyst expectations). The stock is coming off an already strong year in 2024 where its share price rose by 94%. It’s off to a good start in 2025 and solid Q3 numbers should ensure it continues rallying in the days and weeks ahead.
For long-term investors, this can make for an excellent buy as Aritzia has established itself as a top apparel brand in both Canada and the U.S.
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