Aritzia targets up to 10.5 billion dollars in revenue by fiscal 2032

Aritzia has set out a five-year strategic plan targeting net revenue of 9.5 to 10.5 billion dollars in fiscal 2032, representing a compound annual growth rate of 15 to 17 percent. The company, which presented the plan at an Investor Day in New York on Tuesday, said the US will remain its primary growth market, while it begins expanding beyond Canada and the United States.

“Our five-year plan builds on the tremendous momentum in our business and the proven growth levers that have driven our success,” said Jennifer Wong, chief executive officer. “Our United States business is delivering exceptional results and will remain our primary growth market through Fiscal 2032, with substantial runway still ahead. At the same time, we will begin taking an important step toward our long-term ambition of becoming famous around the world. We believe our unique strengths, long-term mindset and much-loved Everyday Luxury® experience position us to deliver sustained, profitable growth and enduring value for our shareholders.”

Aritzia is also targeting an adjusted EBITDA margin of 21 percent of net revenue by fiscal 2032, an expansion of 100 basis points, and expects earnings per share growth to outpace revenue growth. The company said international expansion could contribute up to 500 million dollars in net revenue by fiscal 2032.

Four growth levers

The plan is built on four strategic levers. To expand geographically, Aritzia plans to open 12 to 14 boutiques and reposition five to seven existing boutiques annually, driving a mid-teens compound annual growth rate in retail square footage. It expects to reach a total of 220 boutiques by fiscal 2032, up from more than 145 today.

In digital, Aritzia is targeting North American net revenue of around 4.1 to 4.5 billion dollars in fiscal 2032, representing a compound annual growth rate of around 20 percent. Growth is expected to come from product expansion, digital marketing investment, the introduction of a loyalty experience and enhancements to its digital ecosystem.

The company also plans to broaden its assortment, with product expansion categories expected to contribute around 1.5 billion dollars in incremental net revenue by fiscal 2032. Alongside this, Aritzia aims to increase brand awareness and approximately double its client base over the period.

Aritzia expects net capital expenditures of around 2 billion dollars over the five years and plans to return 50 percent of free cash flow to shareholders through around 2 billion dollars in share repurchases.

This article was written with the assistance of AI.