Aritzia Q1 revenue drops 43% amid Covid-19
Vancouver-based fashion retailer Aritzia announced on Thursday a first-quarter loss and revenue drop, as it temporarily closed all of its 96 boutiques during the quarter, due to the Covid-19 pandemic.
For the first quarter ended May 31, 2020, the company reported net revenue of $111.4 million, down 43.4 percent when compared to $196.7 million in the first quarter last year.
Net loss totalled $26.5 million, down from net income of $16.2 million in the first quarter last year.
Likewise, adjusted net loss was $24.9 million or 23 cents per diluted share compared to net income of $18.5 million or 17 cents per share for the first quarter the previous year.
Still, e-commerce looks to be a bright spot for the company, reporting e-commerce sales growth of more than 150 percent during the quarter.
"The first two weeks of the quarter, we saw a meaningful decline in our sales leading up to the closure of our 96 boutiques on March 16. We took immediate action to drive eCommerce revenue and manage expenditures to maintain liquidity and preserve our solid financial position," said Brian Hill, Founder, CEO and chairman.
Aritzia commenced a phased reopening of its boutiques on May 7, and managed to open 30 boutiques by the end of the quarter.
To date, 89 boutiques have been reopened and initial sales have exceeded expectations, yet net revenue for the first five weeks of the second quarter was still down approximately 25 to 30 percent compared to last year.
Moreover, e-commerce revenue growth in the second quarter has moderated with the reopening of the majority of its boutiques and is currently trending 50 to 100 percent higher than last year.
Despite the pandemic, the company is not steering clear of expansion. It plans to open five to six new boutiques, two exclusive pop-ups and reposition three existing locations during the remainder of fiscal 2021.
Due to the ongoing uncertainty surrounding the Covid-19 pandemic, Aritizia did not provide guidance for the second quarter and full-year fiscal 2021 financial results.
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