Close X
Wednesday, November 27, 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

Man pleads guilty to Langley triple homicide

Man pleads guilty to Langley triple homicide
The homicide team says in a statement that Kia Ebrahimian pleaded guilty to three counts of second-degree murder in B.C. Supreme Court on Monday. Police were called to a Langley house fire on June 13, 2020, and found the bodies of the man's mother Tatiana Bazyar, his brother Befrin Ebrahimian and Francesco Zangrilli.  

Man pleads guilty to Langley triple homicide

Dental benefit may not reach families who need it

Dental benefit may not reach families who need it
The federal government plans to send cheques of up to $650 to qualifying low- and medium-income households to help pay for children's dental needs through the same platform used for Canada Child Benefit payments. That is run through the Canada Revenue Agency, which the experts suggest could be a problem because many low-income families are less likely to file tax returns.

Dental benefit may not reach families who need it

Arrests are 'futile' to curb crime: B.C. minister

Arrests are 'futile' to curb crime: B.C. minister
Murray Rankin says fighting crime by arresting more people is "futile," and the government is instead considering a range of options to keep people safe. Opposition Liberal Leader Kevin Falcon told the legislature that the government has continued a "catch-and-release" policy where repeat offenders are quickly freed from custody despite being accused of violent crimes.  

Arrests are 'futile' to curb crime: B.C. minister

Crews battle wildfire in B.C. regional park

Crews battle wildfire in B.C. regional park
A Twitter account for the district's emergency services division had posted on Saturday afternoon saying the fire was "under control and not spreading," but on Sunday the BC Wildfire Service's website lists the blaze as out-of-control. Videos posted online by the district show a helicopter dumping water on the fire.

Crews battle wildfire in B.C. regional park

B.C. to bring in new rules for mortgage brokers

B.C. to bring in new rules for mortgage brokers
Finance Minister Selina Robinson introduced the bill in the legislature on Tuesday, saying B.C. residents deserve better consumer protection and more transparency in the mortgage broking industry. One pending change is increasing fines to a maximum of $500,000 for those caught breaking the rules, while those with more than one conviction could face fines of up to $2.5 million.

B.C. to bring in new rules for mortgage brokers

VPD releases video of mischief to Olympic Cauldron

VPD releases video of mischief to Olympic Cauldron
Just after 3:30 a.m. on October 1, two suspects were in Jack Poole Plaza for 12 minutes, and briefly approached the base of the cauldron before leaving. When they returned 30 minutes later, one approached the base of the cauldron with a tool, while the other appeared to pull out a camera to record the destruction.

VPD releases video of mischief to Olympic Cauldron