ATZ Seen Returning to Positive Comp Sales in FY25 - UBS Dow Jones Newswires
September 29, 2023 14:16 ET (18:16 GMT)
Aritzia's 2Q results had more positives than negatives after unexpectedly posting revenue growth, UBS analysts say in a research note. The Canadian women's fashion brand is making progress in resonating well with rapid changing consumer trends over styles, which should drive a return to positive comparative sales in FY25 amid a higher margin rate, analysts say. Aritzia's inventory levels could further improve though, analysts say. "We expect Aritzia's savings initiatives, diminishing cost headwinds, and top-line acceleration, will drive a 450 basis points year-over-year FY25 operating margin recovery."