Canadian fashion firm Aritzia's revenue grows 13.4% in Q1 FY24

In the US, the company’s net revenue climbed by 21.8 per cent to $251.9 million, while in Canada, net revenue saw a modest increase of 4.8 per cent to $210.8 million.

The retail division’s net revenue went up by 13.8 per cent to $327.6 million. This increase was primarily driven by the strong performance of Aritzia's new and repositioned boutiques, which totalled 115 by the end of Q1 FY24, up from 109 in Q1 FY23, the company said in a media release.

Furthermore, the company's e-commerce division also fared well in Q1 FY24, with net revenue growing by 12.5 per cent to $135.1 million, a significant increase from the $120.1 million recorded in Q1 FY23.

Aritzia's gross profit saw a slight decrease of 0.5 per cent to $180 million in Q1 FY24, while the gross profit margin slipped to 38.9 per cent compared to 44.3 per cent in Q1 FY23. Selling, general and administrative expenses rose by 27.6 per cent to $153.5 million, accounting for 33.2 per cent of net revenue, up from 29.5 per cent in Q1 FY23.

Net income dropped by 47.5 per cent to $17.5 million, and net income per diluted share fell by 48.3 per cent to $0.15 per share. Adjusted EBITDA also decreased by 54.6 per cent to $31.6 million or 6.8 per cent of net revenue, and adjusted net income fell by 72.6 per cent to $11.2 million. Adjusted net income per diluted share also dipped to $0.10 per share, a decrease of 71.4 per cent compared to Q1 FY23.

Lastly, the company's inventory level rose by 62.4 per cent to $485 million in Q1 FY24, a considerable increase from $298.6 million at the end of Q1 FY23.

"We delivered first quarter net revenue of $463 million, an increase of 13 per cent on top of strong growth of 65 per cent in the first quarter last year, driven by our growing brand awareness and new client acquisition. Results continued to be fuelled by our business in the US, where first quarter net revenue grew 22 per cent on top of an 81 per cent increase in the first quarter of 2023 and our active client base nearly doubled over the past two years," said Jennifer Wong, CEO. "Our growth was balanced across channels, with net revenue increasing 14 per cent in retail and 13 per cent in e-commerce, highlighting the strength of our multi-channel business."

Fibre2Fashion News Desk (DP)