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Canadian fashion firm Aritzia’s revenue surges 4.6% in Q3 FY24

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Canadian fashion firm Aritzia’s revenue surges 4.6% in Q3 FY24

Aritzia, a Canada-based fashion retailer, has reported a 4.6 per cent increase in net revenue in the third quarter of fiscal 2024 (Q3 FY24), reaching $653.5 million, up from $624.6 million in the same quarter of the previous year. This growth comes after the company experienced substantial revenue increases of 37.8 per cent in Q3 FY23 and 62.9 per cent in Q3 FY22, culminating in a three-year compound annual growth rate of 32.9 per cent. However, comparable sales growth significantly slowed to 0.5 per cent, down from 22.8 per cent in the third quarter of FY23.

The company saw a 4.2 per cent rise in net revenue to $326.6 million, while Canadian revenue grew by 5.1 per cent to $326.9 million. Retail net revenue was up 4.2 per cent to $441.1 million, and eCommerce net revenue increased by 5.5 per cent to $212.5 million, reflecting a continued expansion in both channels.

Aritzia’s gross profit saw a marginal increase of 0.1 per cent to $270.9 million, with gross profit margin declining to 41.5 per cent from 43.3 per cent in the previous year. Selling, general, and administrative expenses surged by 14.4 per cent to $187.4 million, representing 28.7 per cent of net revenue, up from 26.2 per cent, the company said in a press release.

Canadian firm Aritzia reported a 4.6 per cent year-over-year revenue increase in Q3 FY24 to $653.5 million, with a slowed comparable sales growth of 0.5 per cent.
Net income dropped 39.1 per cent to $43.1 million, and adjusted EBITDA fell 23.3 per cent to $91.8 million.
The company’s gross profit margin decreased to 41.5 per cent in Q3 FY24.

Net income for the quarter stood at $43.1 million, a stark decrease of 39.1 per cent from $70.7 million in Q3 FY23. Consequently, net income per diluted share fell by 37.7 per cent to $0.38, compared to $0.61 in the prior year.

Adjusted EBITDA also experienced a decline, falling 23.3 per cent to $91.8 million, or 14 per cent of net revenue, from $119.6 million, or 19.2 per cent of net revenue in Q3 2023. Adjusted net income and adjusted net income per diluted share decreased to $52.7 million and $0.47 per share.

“Although the consumer environment remains mixed, we generated sales growth across all of our geographies and channels, as clients responded well to our new styles and outerwear offering,” said Jennifer Wong, chief executive officer. “As expected, we saw sequential margin improvement in the third quarter, and we made ongoing progress in executing against our fiscal 2024 priorities. Our new Toronto area distribution centre successfully ramped to accommodate record volume and we further improved our inventory position.”

Fibre2Fashion News Desk (DP)


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