04:53 PM EDT, 10/10/2024 (MT Newswires) -- Aritzia Inc. ( ATZAF ) after trade Thursday reported a fiscal second-quarter earnings and revenues beat, and provided a third quarter outlook lower than a consensus estimate from Capital IQ.

The clothing retailer said its adjusted profit, which excludes most one-time items, rose to $24.5 million, or $0.21 per share, in the quarter ended Spet.1, up from $3.42 million, or $0.03, in the year-prior period. The result was well ahead of the consensus estimate for a $0.15 per share adjusted profit, according to Capital IQ.

Boosted by a 24% rise in U.S. sales, net revenue rose 15% to $615.66 million from $534.19 million, again topping the Capital IQ consensus of $584.01 million.

In outlook for its fiscal third quarter, Aritzia ( ATZAF ) said based on quarter-to-date trends, it expects net revenue in the range of $675 million to $700 million. This represents growth of approximately 3% to 7% or growth of approximately 7% to 11% excluding two factors which contributed $25 million in the third quarter last year: the Digital Archive Sale, which will not reoccur, and the calendar shift causing the week of the company's annual warehouse sale to fall in the fiscal second quarter, compared to the third quarter in Fiscal 2024.

Capital IQ sees the company's revenue rising to $738.33-million in its current quarter.

For Fiscal 2025, Aritzia ( ATZAF ) expects net revenue in the range of $2.54 billion to $2.60 billion, compared to a Capital IQ forecast of $2.50 billion. The company said its forecast represents growth of approximately 9% to 11% from Fiscal 2024, or growth of approximately 10% to 13%.

The fiscal year outlook includes the contribution from retail expansion with 12 to 13 new boutiques and 3 to 4 boutique repositions. Other than one new boutique and one potential boutique reposition in Canada, all openings are expected to be in the United States . Five new boutiques and one boutique reposition have already opened year-to-date

The company expects its gross profit margin to increase by approximately 400 basis points, with and SG&A expenses as a percentage of net revenue to increase approximately 100 bps compared to its year-prior third quarter.

Aritzia ( ATZAF ) shares closed up $0.03 to $50.02 on the Toronto Stock Exchange, leaving it at the high end of its 52 week trading range.