Canadian brand Aritzia raises outlook despite supply chain issues

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Aritzia, a Canadian fashion brand, has reported a 74.9 per cent revenue jump to $350.0 million (Canadian dollar) in the second quarter (Q2) of FY22 over the same period of last fiscal. Despite the supply chain disruptions, labour shortages, and ongoing indirect effects of COVID-19, the company anticipates its Q3 sales to grow in the range of $350-$375 million.

Aritzia, a Canadian fashion brand, reported a 74.9 per cent revenue jump to $350.0 million (Canadian dollar) in the second quarter (Q2) of FY22 over the same period of last fiscal. Despite the supply chain disruptions, labour shortages, and ongoing indirect effects of COVID-19, the company anticipates its Q3 sales to grow in the range of $350-$375 million.

“I am particularly excited by the unprecedented pace of growth in our business in the United States, as existing and new clients enjoy our Everyday Luxury experience on Aritzia.com and in our boutiques. Our e-commerce revenue continues to surge with 49 per cent growth on top of the 82 per cent growth that we saw in the second quarter last year,” Brian Hill, founder, chief executive officer and chairman at Aritzia, said in a press release.

Gross profit for the second quarter ended on August 29, 2021, expanded to $156.2 million ($70.4 million), while selling, general and administrative expenses totalled to $92.1 million ($60.1 million). Net income improved to $39.8 million over the loss of $0.9 million in Q2 FY21.

The women brand’s retail revenue almost doubled by growing 95.3 per cent to $219.6 million ($112.5 million) primarily driven by the company’s boutiques exceeding pre-pandemic levels in both Canada and the US. On the other hand, e-commerce sales stood tall at $130.4 million in the Q2 FY22.

“The strength of our business across all geographies and all channels continues through the start of the third quarter. Looking ahead, expansion in the US will be a leading driver of our growth. We are confident that e-commerce will continue to grow even on the back of 89 per cent growth last year. Retail has surpassed our most optimistic expectations and is continuing to trend above pre-pandemic levels, now and for the foreseeable future,” Hill added.

“The performance of our new boutiques continues to outperform our expectations with significant investment focused on the US, further fuelling our brand awareness and multi-channel business. I remain incredibly grateful for the enduring loyalty of our clients and the effort of our team and their unwavering commitment to delivering Everyday Luxury,” Hill concluded.

Fibre2Fashion News Desk (JL)

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