Canadian fashion house Aritzia's revenue rises 4.6% in Q3 FY24

11 Jan '24

3 min read

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Aritzia's Q3 FY24 saw a 4.6 per cent rise in net revenue to $653.5 million, with a three-year CAGR of 32.9 per cent.
US and Canada revenues increased by 4.2 per cent and 5.1 per cent, respectively.
Retail net revenue grew by 4.2 per cent, and e-commerce by 5.5 per cent.
Gross profit marginally increased, but net income dropped by 39.1 per cent.

Canada-based women’s fashion brand Aritzia has reported a 4.6 per cent increase in net revenue to $653.5 million in the third quarter of fiscal 2024 (Q3 FY24), up from $624.6 million in Q3 FY23. This growth follows an impressive 37.8 per cent increase in Q3 FY23 and a 62.9 per cent rise in Q3 FY22, leading to a three-year compound annual growth rate (CAGR) of 32.9 per cent. Despite these gains, comparable sales growth slowed to 0.5 per cent, a sharp contrast to the 22.8 per cent seen in Q3 FY23.

In geographical terms, net revenue in the US saw a 4.2 per cent increase to $326.6 million, compared to $313.5 million in the same quarter last year. Canadian revenue showed a stronger growth of 5.1 per cent, reaching $326.9 million, up from $311.1 million in Q3 FY23, the company said in a press release.

Aritzia's retail net revenue increased by 4.2 per cent to $441.1 million in Q3 FY24, and e-commerce net revenue saw a slightly higher increase of 5.5 per cent to $212.5 million, compared to $201.4 million in Q3 FY23.

Gross profit marginally increased by 0.1 per cent to $270.9 million, compared to $270.7 million in Q3 FY23. However, the gross profit margin decreased to 41.5 per cent from 43.3 per cent in the previous year.

Selling, general and administrative (SG&A) expenses rose significantly by 14.4 per cent to $187.4 million, constituting 28.7 per cent of net revenue, up from 26.2 per cent in Q3 FY23.

Net income saw a substantial decrease of 39.1 per cent, falling to $43.1 million from $70.7 million in Q3 FY23. Similarly, net income per diluted share decreased by 37.7 per cent to $0.38 per share, compared to $0.61 per share in Q3 FY23.

Adjusted EBITDA also declined by 23.3 per cent to $91.8 million or 14 per cent of net revenue, compared to $119.6 million or 19.2 per cent of net revenue in Q3 FY23. Adjusted net income decreased by 31.2 per cent to $52.7 million, and adjusted net income per diluted share fell by 29.9 per cent to $0.47 per share.

Inventory at the end of Q3 FY24 was $397.0 million, showing a 21.9 per cent decrease from $508.4 million at the end of Q3 FY23.

"As we continue to anniversary two years of unprecedented growth, resulting in a 33 per cent three-year net revenue CAGR in Q3 of Fiscal 2024, we remain focused on investing in the scalability of our business and setting the stage for our next level of anticipated growth. Looking ahead, we expect to launch spring 2024 with an improved product assortment and inventory position. We are also accelerating our real estate expansion strategy into fiscal 2025 and diligently working to increase our e-commerce momentum through strategic investments in leadership, digital marketing and technology," said Jennifer Wong, chief executive officer.

Fibre2Fashion News Desk (DP)

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