Aritzia reports double-digit revenue growth in Q1
Aritzia is starting its fiscal year on a high note, announcing its 15th consecutive quarter of comparable sales growth on Wednesday with a double-digit revenue jump.
The Canadian fashion retailer reported net revenue of $167 million, for the first quarter of fiscal 2019, up 15.1 percent compared to the same period last year.
The increase was primarily driven by solid comparable sales growth including from its e-commerce business, and the revenue from six new store openings and eight expanded or repositioned stores since the same period last year.
Comparable sales growth was 10.9 percent compared to last year, where it was 9.3 percent.
Adjusted Net Income was also up by 22.2 percent to $15.2 million, or $0.13 per diluted share, compared to Adjusted Net Income of $12.5 million, or $0.11 per diluted share in the first quarter last year.
"We are extremely pleased to have started the year on an exceptional note with double digit growth in both comparable sales and adjusted EBITDA. Our strong first quarter results, once again illustrate the effectiveness of our powerful business model, as we continue to delight our customers with beautiful, high quality products and an aspirational shopping experience both online and in stores." said Brian Hill, Aritzia's Founder and CEO, in a news statement.
Gross profit increased by 17.4 percent to $67.5 million, or 40.4 percent of net revenue, compared to $57.5 million, or 39.7 percent of net revenue, in the first quarter last year.
Looking ahead, the company said it expects to deliver its 16 consecutive quarter of comparable sales growth in the second quarter of fiscal 2019.
Meanwhile, the Vancouver-based company reaffirmed its 2019 guidance with full-revenue growth expected to be in the mid-teens.
"Looking ahead, we remain focused on executing our key strategic growth initiatives including accelerating our eCommerce growth, enhancing our store network, and strengthening our infrastructure while delivering product that our customer wants. We continue to build our world-class team and remain on track and confident in our ability to achieve or exceed our long term performance targets," added Hill.
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 is based in Vancouver, Canada.
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