Aritzia continues comparable growth streak, appoints board member
today Jul 12, 2019
Following 18 consecutive quarters of comparable growth, Aritzia kicked off fiscal 2020 with another exceptional quarter, delivering net revenue growth of 17.8 percent.
The Vancouver-based fashion company reported net revenues of $196.7 million, up from $167 million in Q1 last year, with positive performances across all geographies and all channels.
Comparable sales growth was 7.9 percent, marking the company’s 19th consecutive quarter of positive growth.
Net income increased by 31.5 percent to $16.2 million from $12.3 million in Q1 last year. Meanwhile, adjusted EBITDA increased by 24.8 percent to $35.4 million, or 18 percent of net revenue, compared to $28.4 million, or 17 percent of net revenue, in the first quarter last year.
The increase was driven by a positive performance in the U.S. where revenue increased 38.1 percent, as it continues to seize opportunities in the American market. The company also reported momentum in its e-commerce business.
“Our consistent track record of profitable growth illustrates the strength of our powerful business model and the ability of our highly talented team to deliver across our strategic initiatives,” explained Brian Hill, founder, CEO and Chairman.
“The momentum in our U.S. business continued as our new and expanded boutiques and marketing efforts drove brand awareness leading new clients to discover Aritzia as a fashion brand destination."
During the quarter, Aritzia expanded its boutique network with one new boutique opening at Hudson Yards in Manhattan.
On Thursday, the company also announced the appointment of John Montalbano to Aritzia's board of directors effective July 10.
Looking ahead, Aritzia is once again expecting positive comparable sales growth for the second quarter of fiscal 2020. For fiscal 2020, the company currently expects net revenue growth in the low double-digits.
It plans to open another five new boutiques in the U.S., including four in new markets. It also plans to expand or reposition three Canadian locations, including the repositioning of the Mapleview boutique in Greater Toronto that opened in the first quarter.
Aritzia, which went public in October 2016, was founded in 1984 and currently has over 90 stores across Canada and the U.S. as well as its e-commerce business.
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