For the first quarter that concluded on 2nd June 2024, Canadian fashion store Aritzia reported a 7.8 per cent growth in net revenue, which was accompanied by a net loss.
The Vancouver-based business said that net revenues increased to US $ 498.6 million from US $ 462.7 million in Q1 2024, with comparable sales growth of 2 per cent.
By geography, the company’s real estate expansion strategy and expanding brand awareness drove a 13 per cent increase in net revenue to US $ 284.7 million in the United States, or 57.1 per cent of net revenue. In the meanwhile, net revenue rose by 1.5 per cent to US $ 214.0 million in Canada, the brand’s native country.
With its new and repositioned boutiques performing well and existing boutiques seeing good comparable sales growth, Aritzia’s retail net revenue climbed by 9.2 per cent to US $ 357.8 million. The company repositioned four boutiques and opened five new ones in the past 12 months.
Similarly, net revenue from e-commerce increased 4.2 per cent to US $ 140.8 million, accounting for 28.2 per cent of total revenue. The retailer’s net profits dropped to US $ 15.8 million, a 9.4 per cent decline. Compared to US $ 0.15 per share in Q1 2024, net income per diluted share was US $ 0.14 per share.
“We are pleased with our performance during the first quarter of Fiscal 2025, as we generated an 8 per cent increase in net revenue compared to the first quarter of Fiscal 2024 and delivered positive comparable sales growth in all geographies and all channels,” said Jennifer Wong, chief executive officer.
Aritzia projects net revenue for the second quarter of Fiscal 2025 to be between US $ 570 million and US $ 590 million, or an increase of between 7 per cent to 10 per cent. Aritzia projects net revenue for the entire fiscal year to be between US $ 2.52 and US $ 2.62 billion, which would indicate increase of between 8 per cent to 12 per cent from Fiscal 2024.
