Aritzia reports 18th consecutive quarter of comparable growth
Aritzia Inc. announced its 18th consecutive quarter of comparable growth on Thursday as it continues to seize opportunities in the American market.
The Vancouver-based fashion company reported comparable sales growth of 5.5 percent for the fourth quarter ended March 3, 2019.
Net revenue increased by 17.9 percent to $259.1 million compared to $219.8 million in the fourth quarter last year.
The increase was driven by momentum in the company's e-commerce business as well as positive performance across its boutique network in both the U.S. and Canada.
Adjusted net Income increased by 11.5 percent to $25.1 million, or $0.21 per diluted share, compared with $22.5 million, or $0.19 per diluted share in reported in the fourth quarter last year.
Likewise, full-year net revenue increased by 17.6 percent to $874.3 million, including $12.2 million from the extra week, compared to $743.3 million in the prior year.
Adjusted net Income increased by 24.5 percent to $94.5 million, or $0.81 per diluted, compared to $75.9 million, or $0.65 per diluted share in the prior year.
"Fiscal 2019 was an incredible year for Aritzia. Our strong performance throughout the year demonstrates both the power of our business model and our commitment to execution across all areas of our organization,” said CEO Brian Hill, in a news statement.
“Aritzia's track record of success has demonstrated an ability not only to drive growth, but also to profitably sustain it. Our distinctive position as a fashion brand destination, our beautiful high-quality product, combined with an aspirational shopping experience, has enabled us to attract and retain a loyal client base."
During fiscal 2019, Aritzia opened seven new boutiques including five in Canada - one in a new market (Quebec City) - and two in the United States, both in new markets in San Diego and Washington, D.C.
Also contributing to its success, the retailer noted increased social media and influencer marketing efforts, which fueled brand awareness in the U.S. and contributed to 36 percent U.S. revenue growth.
Looking ahead, Aritzia plans to open six new boutiques in the U.S., including four in new markets. It equally plans to expand or reposition three Canadian locations.
For fiscal 2020, the company currently expects net revenue growth in the low double-digits.
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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