Canadian firm Aritzia's gross profit grows 39.6% in FY23

Despite higher gross profit, Aritzia's selling, general, and administrative expenses in FY23 increased by 53.4 per cent to $602.5 million, compared to $392.8 million in FY22. Selling, general, and administrative expenses were 27.4 per cent of net revenue, compared to 26.3 per cent in the previous fiscal, the company said in a press release.

Aritzia's net income for FY23 was $187.6 million, a rise of 19.5 per cent compared to $156.9 million in the previous fiscal. Net income per diluted share also increased by 19.9 per cent to $1.63. Meanwhile, adjusted net income was $214.8 million, a growth of 21.5 per cent compared to $176.7 million in the previous fiscal.

Looking at the fourth quarter (Q4) of FY23, Aritzia's gross profit increased by 34.9 per cent to $242.2 million, compared to $179.5 million in Q4 FY22. However, gross profit margin decreased by 240 basis points to 38 per cent, primarily due to markdowns from the previous year and foreign exchange headwinds. Selling, general, and administrative expenses rose by 42.5 per cent to $171.3 million, compared to $120.2 million in Q4 FY22.

Net income for the quarter was $37.3 million, up 9.1 per cent from $34.2 million in Q4 FY22, while net income per diluted share rose by 10.3 per cent to $0.32. Adjusted net income was $46.7 million, an increase of 18.2 per cent compared to $39.5 million in Q4 FY22.

Fibre2Fashion News Desk (DP)