Close X
Monday, November 11, 2024
ADVT 
National

Aritzia earnings rise on online, in-person sales

Darpan News Desk The Canadian Press, 12 Oct, 2022 04:31 PM
  • Aritzia earnings rise on online, in-person sales

VANCOUVER - Aritzia Inc. saw net income go up 16 per cent in the second quarter of fiscal year 2023, as both retail and e-commerce sales rose year over year.

The Vancouver-based clothing retailer said it earned $46.3 million or 40 cents per diluted share in the second quarter, up from $39.8 million or 35 cents per share a year earlier.

Excluding one-time items, adjusted net income was $82.6 million or 44 cents per share, compared with $72.9 million or 39 cents per share in the prior year.

Retail experts have said Aritzia has successfully developed a faithful customer base in recent years, and that momentum is expected to continue.

They said Aritzia is somewhere between luxury and fast-fashion, selling to middle-class and upper-middle-class consumers. Liza Amlani of Retail Strategy Group said the brand is seen as “aspirational” to many shoppers.

The brand doesn’t have a lot of competition, making it more able to weather the current inflation trend, she said.

Jenna Jacobson, assistant professor at Toronto Metropolitan University's Ted Rogers School of Retail Management, told the Canadian Press ahead of the company’s earnings report that it’s established itself as a relatable brand, with a strong digital and influencer strategy that has helped its growth south of the border.

Aritzia’s stock price was up 6.51 per cent on the earnings news, largely unchanged year over year after a softer summer.

Revenues rose 50.1 per cent to $525.5 million from $350.1 million year over year, with same-store sales rising 28.3 per cent.

Retail revenues rose almost 70 per cent to $351.6 million while e-commerce sales increased 33.1 per cent to $173.9 million.

Aritzia successfully leveraged its e-commerce to drive performance during the COVID-19 pandemic, and saw its sales pass pre-pandemic levels after in-store shopping resumed.

Aritzia said its strong performance has continued through the start of the third quarter.

“Our performance in the United States continued to surge, with revenue growth of 80 per cent, as our existing and new boutiques once again outperformed expectations, underscoring our growing brand awareness,” said CEO Jennifer Wong in the press release.

“Looking forward, we believe that we remain well positioned for long-term success, as we strategically invest in the infrastructure that will allow us to capitalize on our growth strategies,” she said.

Aritzia currently has 112 stores, 68 in Canada and 44 in the U.S.. It has plans to open up to 10 more within the fiscal year, mostly in the U.S.

MORE National ARTICLES

Sentencing hearing begins for Amanda Todd harasser

Sentencing hearing begins for Amanda Todd harasser
A B.C. Supreme Court jury convicted Aydin Coban last month of extortion, harassment, communication with a young person to commit a sexual offence and possession and distribution of child pornography.

Sentencing hearing begins for Amanda Todd harasser

Structure fire in Surrey lands 2 in hospital, road closures in effect

Structure fire in Surrey lands 2 in hospital, road closures in effect
At approximately 3:54 pm this afternoon, Surrey RCMP received a report of a structure fire in the 14800 block of 75a avenue. Upon arrival, police found the residence fully engulfed, and firefighters were hard at work trying to contain the fire. Police and fire crews are on scene. It is expected that traffic in the area will be disrupted for some time.

Structure fire in Surrey lands 2 in hospital, road closures in effect

Late night shooting in Maple Ridge over the weekend lands man in hospital

Late night shooting in Maple Ridge over the weekend lands man in hospital
When police arrived they confirmed the man, a 51 year old Maple Ridge resident, was suffering from gunshot wounds. The man was transported to hospital with serious injuries. The house remains secured by police while they execute a search warrant.  

Late night shooting in Maple Ridge over the weekend lands man in hospital

Expert flags potential for dental-care clawbacks as result of federal program

Expert flags potential for dental-care clawbacks as result of federal program
The government plans to offer cheques of up to $650 to qualifying low- and middle-income families with children under the age of 12 to help pay for their dental needs. Qualifying families will have to attest that they don't have private insurance, that they have out-of-pocket dental expenses and that they will keep their receipts.

Expert flags potential for dental-care clawbacks as result of federal program

Arrests after violent end to Vancouver concert

Arrests after violent end to Vancouver concert
Police say fights broke out inside and outside the PNE Amphitheatre following the sudden cancellation of the headline act in the final hours of the two-day BreakOut Festival. The police statement says hostile concertgoers also caused significant property damage to the amphitheatre, other PNE grounds and the surrounding neighbourhood before order was restored.

Arrests after violent end to Vancouver concert

Surrey residence riddled with bullet holes after Sunday morning shooting

Surrey residence riddled with bullet holes after Sunday morning shooting
At approximately 4:30pm, on Sunday, Surrey RCMP responded to a report of shots fired in the 12300 block of 68thavenue. Responding officers attended and found shots fired into a residence and confirmed there were no injuries.

Surrey residence riddled with bullet holes after Sunday morning shooting