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The renovation features a striking brick facade and wall veneers that immediately set a distinct tone for the store, blending seamlessly with the Village at Corte Madera’s aesthetic. Inside, the store welcomes customers with beautifully inlaid tile flooring that proudly bears the Aritzia name, offering a unique and inviting shopping experience. Additionally, the store boasts custom millwork fitting rooms, combining privacy, comfort, and style to enhance the customer experience.
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Aritzia has an in-house music director who organizes playlists to fit the eclectic decor. Every Friday, the playlist is updated to match the cycling of songs played in the stores. Aritzia takes an evidence-based approach when it comes to sustainability. They want to first understand their impact and follow with meaningful change.
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We visited the expanded Aritzia over the weekend and were impressed with how busy it was. Loud, thumping music set the mood, and the store was surprisingly vibrant in a part of the city that is typically subdued. Dozens of staff are on duty at any one time, and we’d say that the new store would be one of the busiest on the street, and that includes considerably larger stores such as Louis Vuitton and Holt Renfrew. The new store features an imposing facade that spans almost triple the width of the former, smaller store. Last year Aritzia updated its logo from a stylized design to more of a traditional font (that is also arguably more readable). A large marquee entrance with dozens of lightbulbs greet shoppers on the street into the new store.
Pillar 5: Marketing
And we really love setting the mood in our boutiques with curated playlists. Follow us on Spotify and listen all day, every day — it’s the next best thing to being with us 24/7. Behind the neutral cashwrap midway through the store, individual square wood panels side-by-side create a large square that continues the vintage feel.
CEO Talk Brian Hill, Chief Executive Officer, Aritzia - The Business of Fashion
CEO Talk Brian Hill, Chief Executive Officer, Aritzia.
Posted: Tue, 25 Aug 2009 07:00:00 GMT [source]
Further, Aritzia’s revenue is bucketed toward Q3 and Q4 of the financial year which together account for 60% of the annual revenue. Aritzia’s store expansion generally involve increasing the existing selling space by 3,500 square feet. The net investment for the expansion is $2 million and a payback period of around 24 months. Aritzia has grown its store count from 28 in FY2008 to 115 as of November 2022 as at annual compounded annual growth rate (“CAGR”) of around 10%. It currently has 67 stores in Canada and 48 stores in the US. Store growth in its home market of Canada has stagnated since FY2019 and most of the growth is coming from the US where is a relatively newer brand.
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During the pandemic, the stay-at-home orders led to a decrease in Aritzia’s sales of its professional wear brand Babaton. The company had the flexibility to push other brands which had a more stay-at-home and casual product line. The Canadian retailer is high-up on our list of essential stores to shop thanks to the brand's chic offerings, so, ahead of the warmer season, we've rounded up all of our favorites. From the best-selling blazers to the linen pants one editor wore all summer straight, scroll (and shoo) all of the best editor-approved Aritzia pieces we wear 24/7. Between FY2018 and FY2022, Aritzia on average spent $60 million per year on capital expenditure.
Richmond Hill
EBITDA margin for LTM November 2022 was lower compared to FY2022 due to lower gross margins. As of January 27, 2023, Aritzia had a market capitalization of $5,220 million and FY2022 revenues of $1,495 million. Aritizia has also benefited from organic impressions when celebrities like Meghan Markle wear Aritzia’s clothing. Markle was first spotted wearing a beautiful burgundy Aritzia dress in 2017 during her first public event as Prince Harry’s girlfriend. That jacket sold out in six hours after Markle was seen wearing it.
The only other Venchi location in Florida is in Aventura, about 30 miles south. The retailer, popular among New Yorkers, is most known for its nougatine — small candies made of crushed and caramelized hazelnuts, then coated in dark chocolate. At the current share price of $47.3 per share, and an intrinsic value estimate of $65 per share, Aritzia presents an upside opportunity of ~36%. We are confident in the management’s ability to scale the business over the next five years. We are also cautious of risks relating to competition and maintaining brand relevance. Considering that Aritzia has 80% ROIC at the store level, this is not a surprise.
That translates into an EBITDA margin of 30% per store, and a return on invested capital (“ROIC”) of 80% for every new store. As discussed previously, new stores also lead to 80% uptick in ecommerce sales. That increase is not factored into in the new store economics, so ROIC can be effectively higher than 80%. In 2007 Aritzia launched its first store in the United States which has now become the largest geographic market for the firm’s products. Its eCommerce website was launched in 2012 and it started shipping its product internationally in 2016.
Aritzia aims to produce clothing that can be maintained beyond just one season of wear. Back in 2010, Aritzia kicked off their sustainability initiatives by launching the Community brand to incubate sustainability. Immediately after, the company banned fur from all their products. Since 2010, Aritzia has been taking steps toward being as sustainable as possible– Aritzia joined UN Global Impact in 2021 as the most recent initiative. The clothes you want to wear right now, timeless design and quality you can love forever. The fashion chain, founded in Barcelona, offers Mediterranean-style clothes for women, with lines for men and teens, too.
Here we can see that the company continues to expand its title within both countries. Wong believes that these numbers underline the notion that long-term success is prevalent. The company plans to strategically invest in infrastructure so that they can capitalize on growth strategies. Aritzia Community™ is an organization aiding in poverty alleviation, mentorship, and job readiness. 445,000 women have been positively impacted by Aritzia’s mission to help women and girls succeed in their personal and professional lives. Aritzia contributed over $40 million in donations of products, financial support, and volunteer hours to nonprofits and Aritzia partners such as The Brotherhood Sister Sol– a program supporting Black and Latinx youth.
Our Style Advisors have an eye for what looks good (and aren’t afraid to tell you when something’s not quite right). Book a personal shopping appointment right now in any of our boutiques. Flued by store expansions and growth in the U.S., we expect revenue per store to rise from $11.5 million in LTM November 2022, to $14 million in FY2027. In addition to reinvesting in the business for growth, the management has been opportunistically buying back shares. Since its IPO, Aritzia has bought has 8.7 million shares for $187 million. Average cost comes to $21 per share which is less than half of the current share price of $47.3.
Aritzia’s products are only sold in their stores and on Aritzia.com. The company does not have a third-party wholesale channel for their products. As can be seen in Figure 2, over the last six years, Aritzia introduced brands such as TnAction, Super World, Sunday best, Denim Forum and Ten by Babaton. It also continuously introduces various sub brands under its successful brands such as TNA, Babaton and Wilfred. Each brand is treated as a separate label with its own dedicated in-house design team. The brand is known for the development of its in-house, independent apparel and accessories labels—Babaton, Wilfred, Tna, and more—all of which Aritzia treats with its own creative team and high-quality, on-trend aesthetic.
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