Aritzia sales receive boost from “unprecedented growth” in US
Vancouver-based fashion retailer Aritzia Inc. announced a year-over-year increase of 74.9% in its second-quarter revenues on Wednesday, as strong progress in the United States accelerated the company’s sales growth.
In the second quarter ended August 29, 2021, Aritzia’s net revenue totaled $350.1 million, up from $200.2 million in the prior-year period. Compared to the same period two years ago, before the company’s operations were affected by the Covid-19 crisis, revenue increased 45.1%.
In particular, Aritzia said that it had seen an “unprecedented acceleration of sales in the United States” during the quarter, with net revenues in the country rising 152.0% to $146.4 million, compared to $58.1 million in the same period in the previous year.
The company’s quarterly e-commerce revenue rose 48.7% to $130.4 million, compared to $87.7 million the year before. E-commerce sales represented 37.3% of the retailer’s total revenue in Q2.
Retail revenue increased 95.3%, from $112.5 million to $219.6 million, with sales in both Aritzia’s Canadian and U.S. stores exceeding pre-pandemic levels.
The company’s second-quarter net income was $39.8 million, compared to a loss of $0.9 million in the prior-year period.
“Our net revenue growth of 75% reflects accelerated momentum across all geographies and all channels. 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,” commented Aritiza founder, CEO and chairman Brian Hill in a release.
“Looking ahead, expansion in the United States will be a leading driver of our growth,” he added. “The performance of our new boutiques continues to outperform our expectations with significant investment focused on the United States, further fueling our brand awareness and multi-channel business.”
For the first six months of the current fiscal year, Aritizia reported net revenue of $597.0 million, up 91.6% from $311.5 million a year ago. Net income for the period totaled $57.8 million, compared to a loss of $27.3 million.
As it moves forward, the company expects its third-quarter revenues to be in the range of $350 million to $375 million.
Aritizia has also increased its financial guidance for the full fiscal year. It now expects to achieve annual net revenue of between $1.25 billion and $1.30 billion, reflecting year-over-year growth of 45% to 50%. The company had previously reported that it expected its annual revenue to total between $1.15 billion and $1.20 billion.
As of the end of the second quarter, Aritzia operates 104 stores.
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