Aritzia reports Q3 double-digit revenue growth, sales up 13%
Aritzia continued on a steady growth path in its third quarter, reporting its 17th consecutive quarter of comparable growth on Wednesday.
The Vancouver-based fashion company reported a net Income increase of 16.1 percent reaching $32.6 million, up from $28.1 million.
Revenue was $242.9 million for the quarter, up 18.8 percent compared to the same period last year. The jump was primarily driven by comparable sales growth of 12.9 percent, boasted by a strong e-commerce business and store sales.
Founder and CEO Brian Hill noted that sales in the U.S. remained particularly strong, as the company attributed about 40 percent of its revenue growth to its U.S. business.
“Our U.S. business remains strong, again generating 40 percent revenue growth this quarter propelled by accelerated comparable growth in our existing boutiques and online, as well as our new and expanded boutiques and marketing efforts designed to drive brand awareness," said Hill.
During the quarter, the company benefited from solid marketing efforts around social media and influencers, such as its marketing campaign with Kendall Jenner. What’s more, the Duchess of Sussex, Meghan Markle, has been snapped wearing pieces from the company throughout the year.
It also opened two new boutiques including its first outlet boutique at Toronto Premium Outlets in Ontario, which Hill said was performing well, and was highly profitable.
Looking ahead, the company expects comparable sales growth in the mid-single digits for the fourth quarter. Meanwhile, for fiscal 2019, it reaffirmed its guidance with full-revenue growth expected to be in the mid-teens.
Aritzia is also launching predictions for 2020, which it says “will mark its largest single year expansion in the United States.”
It plans to open approximately six new boutiques in the U.S.
Aritzia, which went public in October 2016, posted gross profit of $295.5 million, or 39.8 percent of net revenue, in fiscal 2018. The company 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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