EPS of 21c beat estimates of 14.8c. Revenue of $615.6M beat estimates of $583.4M. Guidance was fractionally lower, probably due to the company simply being conservative. Still, Aritzia could surpass full-year guidance for sales to rise 9-11% and consensus' 11% growth, aided by three flagship openings in 2H -- SoHo and Fifth Avenue in New York City and one in Chicago -- which the company said was the equivalent of opening 10 regular stores. New US stores' sales exceeded hurdle rates in 2Q, comprising half the 15.3% total sales lift. Ebitda margin may also beat management's outlook for 400-450 bps and analysts' 478 bps for the full year, with further upside in 2025, mostly from additional mark-on opportunities and as growth from new and repositioned stores leverage fixed costs. Balanced inventories also support margins, minimizing markdown risk. The quarter itself was very solid, but without upped guidance investors were disappointed after its big run up (still up 71% YTD). But nothing really changes here. The problems the company had (largely inventory related) have been solved, and growth continues nicely overall. We would remain buyers.
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