Gross profit rose to $142 million, or 37 per cent of net sales, up from $137.8 million or 37.7 per cent of net sales recorded in the previous year, the company said in a press release.

Selling, general and administrative expenses in Q1 FY24 climbed to $95.7 million, or 24.9 per cent of net sales, up from $85.4 million or 23.3 per cent of net sales in Q1 FY23.

Income from operations took a hit, decreasing $6.2 million to $46.2 million, or 12.1 per cent of net sales, compared to $52.4 million, or 14.3 per cent of net sales, in the prior-year period. This decline is largely attributed to the factors mentioned above.

Net income was reported at $34.3 million in Q1 FY24, or $1.13 per diluted share, marking a decrease from the $39.3 million, or $1.29 per diluted share, recorded in Q1 FY23. After excluding tax benefits, net income per diluted share stood at $1.11 for the current year, compared to $1.26 in the prior year period.

The company expanded its footprint by opening 16 new stores, bringing its total store count to 361.

“Total revenue continued to grow, driven by the performance of new stores. From a same store sales growth perspective, we saw a modest 2.9 per cent decline despite cycling outsized comp sales growth in the first quarter for each of the past two years. Once again, we were able to expand our merchandise margin through a significant increase in the penetration of our margin enhancing exclusive brands which reached 38 per cent of sales for the quarter. Earnings also surpassed our expectations, driven by a steadily improving retail store same store sales trend which turned positive in June and remained positive in July,” said Jim Conroy, president and chief executive officer.

Fibre2Fashion News Desk (DP)