Aritzia Q1 FY21: sales down to $111 mn; net loss $26 mn

Aritzia, a Canada-based women's online fashion boutique, reported 43.4 per cent revenue decline to $111.3 million (Canadian dollar) in first quarter (Q1) FY21 that ended on May 31, 2020 compared to $196.6 million in same period prior year. Company incurred a net loss of $26.4 million during the quarter compared to net income of $16.1 million in Q1 FY20.

 

Aritzia, a Canada-based women's online fashion boutique, reported 43.4 per cent revenue decline to $111.3 million (Canadian dollar) in first quarter (Q1) FY21 that ended on May 31, 2020 compared to $196.6 million in same period prior year. Company incurred a net loss of $26.4 million during the quarter compared to net income of $16.1 million in Q1 FY20.#

Gross profit for the quarter fell to $13.0 million (Q1 FY20: $85.5 million). Loss from the operations for Q1 FY21 were $31.4 million compared to income from operations were $28.7 million in same period prior year.

 

Aritzia, a Canada-based women's online fashion boutique, reported 43.4 per cent revenue decline to $111.3 million (Canadian dollar) in first quarter (Q1) FY21 that ended on May 31, 2020 compared to $196.6 million in same period prior year. Company incurred a net loss of $26.4 million during the quarter compared to net income of $16.1 million in Q1 FY20.#

“The first two weeks of the quarter, we saw a meaningful decline in our sales leading up to the closure of our 96 boutiques on March 16. We took immediate action to drive e-commerce revenue and manage expenditures to maintain liquidity and preserve our solid financial position,” Brian Hill, founder, chief executive officer and chairman, said in a press release.  

 

Aritzia, a Canada-based women's online fashion boutique, reported 43.4 per cent revenue decline to $111.3 million (Canadian dollar) in first quarter (Q1) FY21 that ended on May 31, 2020 compared to $196.6 million in same period prior year. Company incurred a net loss of $26.4 million during the quarter compared to net income of $16.1 million in Q1 FY20.#

“Our beautiful product assortment, best-in-class distribution centre operations, aspirational website and loyal clientele led to eCommerce growth in excess of 150 per cent through to the end of the quarter,” Hill said.

 

Aritzia, a Canada-based women's online fashion boutique, reported 43.4 per cent revenue decline to $111.3 million (Canadian dollar) in first quarter (Q1) FY21 that ended on May 31, 2020 compared to $196.6 million in same period prior year. Company incurred a net loss of $26.4 million during the quarter compared to net income of $16.1 million in Q1 FY20.#

Company further reported that its net revenue for the first five weeks of the second quarter is down approximately 25 to 30 per cent compared to last year. As of July 9, 2020, 89 of the 96 boutiques have reopened and are trending, on average, at 55 to 65 per cent of last year's productivity levels. E-commerce revenue growth for Q2 has moderated with the reopening of Aritzia’s majority of its boutiques and is currently trending 50 to 100 per cent higher than last year.

 

Aritzia, a Canada-based women's online fashion boutique, reported 43.4 per cent revenue decline to $111.3 million (Canadian dollar) in first quarter (Q1) FY21 that ended on May 31, 2020 compared to $196.6 million in same period prior year. Company incurred a net loss of $26.4 million during the quarter compared to net income of $16.1 million in Q1 FY20.#

“The crisis has accelerated the shift toward e-commerce across the retail landscape, and we are well-positioned to benefit from the meaningful infrastructure investments we have made in this area. Looking ahead, we continue to enhance our e-commerce capabilities and omni-channel experience, while capitalising on the unprecedented expansion opportunities in real estate,” Hill said. “While the retail environment is likely to continue to be uncertain through the remainder of the year, we are confident in the tremendous growth potential of our business and we will continue to invest in exceptional talent and world-class infrastructure.”