Aritzia revenue climbs 10% in Q3
Aritzia announced on Friday its 21st consecutive quarter of positive comparable growth, delivering a comparable sales uptick of 5.1 percent.
The Vancouver-based fashion company reported net revenues of $267.3 million for the third quarter of fiscal 2020, up 10 percent compared to the same quarter last year.
Net income increased by 6.8 percent to $34.8 million from Q3 last year. Meanwhile, adjusted EBITDA increased by 2.4 percent to $58.4 million, or 21.9 percent of net revenue, compared to $57.1 million, or 23.5 percent of net revenue, in the third quarter last year.
The increase in net revenue and comparable sales was attributed to “sustained momentum in our business," explained Brian Hill, founder, chief executive officer and chairman, “fueled by e-commerce and our continued strength in the United States."
Hill added that record Black Friday week sales also helped significantly surge e-commerce penetration during the quarter, particularly in the United States.
During the quarter, Aritzia expanded its boutique network with one new boutique opening at Cherry Creek in Denver, Colorado and repositioned several boutiques in Canada.
The company also launched its first foray into menswear during the quarter, with an outerwear collection.
Looking ahead, the company expects comparable sales growth in the fourth quarter to be in the high single digits. For fiscal 2020, the company currently expects net revenue growth in the low double-digits.
It also plans to open two more boutiques at the end of the fourth quarter at Houston Galleria in Houston, Texas and the Domain in Austin, Texas.
Overall, the company is also still on track to meet or exceed its stated fiscal 2021 performance targets.
"We are confident that investments across e-commerce, our premier boutique network, our world-class infrastructure, and exceptional talent will keep us well-positioned to deliver shareholder value as we continue to drive growth across products, channels, and regions," concluded Hill.
Aritzia, which went public in October 2016, was founded in 1984 and currently has over 90 stores across Canada and the U.S., as well as its e-commerce business.
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