Aritzia net income triples on Q2 revenue jump
Aritzia continued to see its revenue and comparable sales climb in its second quarter, with net income tripling to $15.1 million, the retailer announced on Thursday.
The Vancouver-based fashion company reported net revenue of $205.4 million, for the quarter ended August 26, 2018, up 18 percent compared to the same period last year. The increase was primarily driven by a solid comparable sales growth including continued momentum from its e-commerce business and a strong store performance. “We are particularly pleased with the exceptional performance in our U.S. business where revenue increased 40% year over year illustrating the growing appeal for our uniquely positioned brand,” noted Brian Hill, founder and CEO, in a news statement. Comparable sales grew 11.5 percent compared to last year, where it was up 5.4 percent, marking the company’s sixteenth consecutive quarter of comparable sales growth. During the quarter, the company opened three new stores in San Diego, in Washington, D.C. and in the Greater Toronto area, as well as one pop-up store at Santana Row in San Jose. Most recently, it opened a pop-up at Old Orchard in Chicago, during the third quarter. Adjusted net income jumped to $18.3 million, or $0.16 per diluted share, up from $10.4 million or $0.09 per share a year earlier. Looking ahead, the Canadian company reaffirmed its 2019 guidance with full-revenue growth expected to be in the mid-teens. "As we move through the second half of the year, we remain focused on advancing our key growth initiatives including strategic investments in our e-commerce business, expansion of our premier store network, and strengthening our infrastructure, while continuing to deliver beautiful high quality product that resonates with our consumers," added Hill. Aritzia, which went public in October 2016, posted gross profit of $295.5 million, or 39.8 percent of net revenue, in fiscal 2018. The company was founded in 1984 and currently has 90 stores across Canada and the U.S. as well as its e-commerce business.