Canada-based fashion retailer Aritzia Inc has reported a 7.8 per cent increase in net revenue to $498.6 million in the first quarter of fiscal 2025 (Q1 FY25), compared to $462.7 million in Q1 FY24. This growth was driven by a 2 per cent increase in comparable sales, with all channels and geographies showing positive results.
Canada-based Aritzia’s Q1 FY25 net revenue rose by 7.8 per cent to $498.6 million, driven by a 2 per cent increase in comparable sales.
US revenue increased by 13 per cent, and Canadian revenue by 1.5 per cent.
Retail net revenue grew by 9.2 per cent, and e-commerce by 4.2 per cent.
Gross profit surged by 22 per cent, but net income fell by 9.4 per cent.
In the US, net revenue rose by 13.0 per cent to $284.7 million, up from $251.9 million in the same quarter last year. Meanwhile, in Canada, net revenue saw a modest increase of 1.5 per cent, reaching $214 million compared to $210.8 million in Q1 FY24, the company said in a press release.
Retail net revenue climbed by 9.2 per cent to $357.8 million, up from $327.6 million in Q1 FY24. The number of boutiques at the end of Q1 FY25 totalled 119, an increase from 115 boutiques at the end of Q1 FY24. E-commerce net revenue also showed growth, rising by 4.2 per cent to $140.8 million from $135.1 million in Q1 FY24.
Gross profit surged by 22 per cent to $219.5 million, compared to $180 million in Q1 FY24, with the gross profit margin improving to 44.0 per cent from 38.9 per cent. However, selling, general, and administrative expenses increased by 14.9 per cent to $176.3 million, up from $153.5 million in the same quarter last year, accounting for 35.4 per cent of net revenue compared to 33.2 per cent in Q1 FY24.
Despite these positive results, net income decreased by 9.4 per cent to $15.8 million, down from $17.5 million in Q1 FY24. Net income per diluted share fell by 6.7 per cent to $0.14 per share, compared to $0.15 per share in the previous year.
On an adjusted basis, EBITDA was $53.9 million, or 10.8 per cent of net revenue, representing a significant increase of 70.6 per cent compared to $31.6 million, or 6.8 per cent of net revenue, in Q1 FY24. Adjusted net income also saw a substantial rise of 122.7 per cent to $25.0 million, up from $11.2 million in Q1 FY24. Adjusted net income per diluted share doubled to $0.22 per share, compared to $0.10 per share in the previous year, the release added .
Inventory levels at the end of Q1 FY25 stood at $396.8 million, a decrease of 18.2 per cent from $485.0 million at the end of Q1 FY24.
“As we navigate a dynamic consumer environment, we’re encouraged by the positive response to both our new styles and client favourites. Our new boutiques continue to perform ahead of expectations, and we are particularly excited about the extraordinary pipeline of boutique openings this year, representing 50 per cent square footage growth in the US. We expect further improvement in our e-commerce business driven by product optimisation and strategic investments,” said Jennifer Wong, chief executive officer.
Fibre2Fashion News Desk (DP)
