04:45 PM EDT, 07/11/2024 (MT Newswires) -- Aritzia ( ATZAF ) at the close of trade Thursday unveiled an earnings and revenues beat for it fiscal first quarter, boosted by a 13% revenue increase in the United States.

The clothing retailer expects the U.S. demand will continue to boost revenues in the second quarter of Fiscal 2025.

The company's adjusted profit, excluding most one-time items, more than doubled to $24.99 million, or $0.22 per share, in the quarter ended June 2, up from $11.22 million, or $0.10, and topping the consensus estimate of $0.16 per share, according to Capital IQ.

Revenue rose 7.8% to $498.63 million from $462.67 million and also beat the $486.37 million forecast from Capital IQ

In its outlook, and based on quarter-to-date trends, Aritzia ( ATZAF ) expects net revenue in the range of $570 million to $590 million in the second quarter of Fiscal 2025, representing growth of approximately 7% to 10%. The company also expects its gross profit margin to increase approximately 450 basis points and SG&A expenses as a percentage of net revenue to increase approximately 100 to 150 bps for the second quarter of Fiscal 2025 compared to year-prior period.

"Our top line was fueled by a 13% net revenue increase in the United States, driven by our real estate expansion strategy and growing brand awareness. Throughout the quarter we continued to optimize the composition of our inventory, which drove a sequential acceleration in sales trends each month. As expected, we also delivered meaningful improvement in our Adjusted EBITDA margin," said Jennifer Wong, chief executive officer.

She added: "Our new boutiques continue to perform ahead of expectations, and we are particularly excited about the extraordinary pipeline of boutique openings this year, representing 50% square footage growth in the United States. We expect further improvement in our eCommerce business driven by product optimization and strategic investments. We are confident that our real estate expansion strategy, digital initiatives, and growing brand awareness in the United States will enable us to deliver consistent, profitable growth for years to come."

Shares in Aritzia ( ATZAF ) closed Thursday up $0.24 to $41.51 on the Toronto Stock Exchange, hitting a fresh 52-week intraday high of $41.71 during the session.