May 4, 2023
Canadian fashion brand Aritzia’s net revenue soars 46.9%
May 4, 2023
Canada-based fashion retailer Aritzia has reported net revenue of $2.2 billion, an increase of 46.9 percent compared to the previous fiscal. The growth was driven by exceptional momentum in the US, where net revenue increased by 65.8 percent to $1.1 billion, and meaningful growth in Canada, where net revenue increased by 31.3 percent to $1.1 billion.
The company's adjusted EBITDA in fiscal 2023 also increased, reaching $351.2 million, or 16 percent of net revenue, compared to $289.4 million, or 19.4 percent of net revenue, in the previous fiscal. Retail net revenue increased by 53.3 percent to $1.4 billion, led by strong performance of existing and new boutiques in the US and double-digit comparable sales growth in Canada.
Aritzia's e-commerce net revenue grew by 36.4 percent to $769.9 million, despite the channel shift to retail in Eastern Canada, where 34 of the company's boutiques were closed for a significant portion of the year, the company said in a press release.
In the fourth quarter, Aritzia continued to see strong momentum with net revenue increasing by 43.5 percent to $637.6 million, compared to $444.3 million in the same quarter of the previous year. The company's adjusted EBITDA for the quarter was $79.4 million, an increase of 19.7 percent compared to the previous year.
Retail net revenue in fourth quarter increased by 38.4 percent to $363.1 million, while e-commerce net revenue increased by 50.8 percent to $274.5 million, driven by exceptional performance in both Canada and the US. The company saw net revenue in Canada increase by 31.9 per cent to $300.1 million, compared to $227.5 million in the same quarter of the previous year.
"The strength in our business across all geographies and all channels reflects the tremendous demand for our beautiful, high-quality products from both new and existing clients," said Jennifer Wong, chief executive officer.
"For the full fiscal, our net revenue increased by 47 per cent, led by exceptional growth of 66 per cent in the US, which now represents more than 50 per cent of our total net revenue. Our retail channel grew by an impressive 53 per cent, while e-commerce net revenue increased 36 per cent in fiscal 2023, underscoring the strength of our everyday luxury experience."
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