Aritzia sales buoyed by strong progress in e-commerce
Vancouver-based fashion retailer Aritzia Inc. reported an 81.1% rise in its e-commerce sales in Q4, progress which helped limit the decline in the company’s total revenues to 2.9%, despite Covid-19-related store closures.
In the fourth quarter ended February 28, 2021, Aritzia achieved net sales of $267.5 million, compared to $275.4 million in the same period in the previous year. This decrease was primarily due to a decline of $57 million in retail revenue related to 39 government-mandated store reclosures and a decrease of $18 million related to restrictions at open boutiques.
Quarterly net income at the company came to $16.1 million, compared to $21.7 million in the prior-year period.
“Our financial results for the fourth quarter demonstrated the strength of our multi-channel business and the growing affinity for our brand,” commented Aritzia founder, CEO and chairman Brian Hill in a release. “Despite the government-mandated reclosure of 39% or 39 of our boutiques for the majority of the quarter, we delivered net revenue of $267.5 million, representing 97% of last year's revenue.”
For the full fiscal year, Aritzia reported net revenue of $857.3 million, down 12.6% from $980.6 million in the previous year, largely due to a 42.8% decline in retail revenue. Annual e-commerce revenue increased 88.3% to $425.9 million, accounting for 49.7% of net revenue, compared to $226.2 million, or 23.1% of net revenue, last year.
Annual net income totaled $19.2 million, falling from $90.6 million in the previous year.
Looking to the future, the company expects its Q1 revenues to increase 110% year over year to approximately $234 million. For the full fiscal year 2022, the retailer expects its net revenues to increase in the range of 30% to 35%.
“We're excited by the strong start to fiscal 2022, on-track to more than double our first quarter net revenue compared to last year, reflecting a previously unseen acceleration of sales in the United States and continued growth in our e-commerce business,” explained Hill.
According to the executive, the company’s strategy moving forward will continue to focus on its four strategic growth drivers, namely digital innovation of e-commerce and omni, geographical retail expansion, ongoing product development, and brand awareness.
Over the course of the last fiscal year, Aritzia opened seven new stores and now operates 101 locations in the U.S. and Canada.
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