Aritzia Continues Winning Streak With Q1 Gains
The Canadian retailer saw sales and profits rise during its first fiscal quarter.
Aritzia Inc. tallied another quarter of positive results, even as other retailers face trying times.
The Canadian fast-fashion retailer saw net income for its first fiscal quarter hit 8.1 million Canadian dollars, a 4.9 percent increase over the same time last year. Net revenue for the period ended May 28 grew to 145 million Canadian dollars, a 14.7 percent increase, and comparable-store sales also rose by 9.3 percent.
“We continued to see strong momentum across our business during the first quarter…including significant growth in our e-commerce channel,” said Brian Hill, Aritzia’s founder, chairman and chief executive officer. “We also saw solid contributions from our new and repositioned stores, which continue to perform at or above our expectations.”
The retailer primarily sells in-house brands of apparel and accessories and opened two stores during the first quarter, one in Los Angeles and one in Toronto, and expanded one location in Vancouver. Last year, Aritzia opened five new stores and expanded or repositioned another five.
“Our performance demonstrates that our disciplined approach to store growth and e-commerce execution, our vertically integrated sourcing strategies, and our unwavering focus on offering beautiful, high-quality products at an attainable price point, continue to differentiate Aritzia from all other retailers,” Hill added.
Aritzia, which began trading in October, posted a positive fourth quarter as well, with net income up 15 percent to 11.5 million Canadian dollars and comp store sales also up 11.5 percent.
Around the time it went public, Aritzia said it intended to expand further with plans to add around 30 stores by 2021. It operates about 60 stores in Canada and 20 stores in the U.S.
Hill said Wednesday that Aritzia is investing in technology “to capture greater customer data and enhance inventory management” as well as additions to company management and that the company is on a path of “sustained, long-term growth.”