Aritzia revenue climbs 17.4% in Q2
today Oct 16, 2019
Aritzia announced on Monday its 20th consecutive quarter of positive comparable growth, delivering a comparable sales uptick of 8.4 percent.
The Vancouver-based fashion company reported net revenues of $241.2 million for the second quarter of fiscal 2020, up 17.4 percent compared to the same quarter last year.
Net income increased by 18.6 percent to $17.9 million from Q2 last year. Meanwhile, adjusted EBITDA increased by 10.1 percent to $36.4 million, or 15.1 percent of net revenue, compared to $33 million, or 16.1 percent of net revenue, in the second quarter last year.
The increase was driven by the company's boutique network with the addition of four new boutiques and two expanded or repositioned boutiques since the second quarter of fiscal 2019, as well as strong online sales.
“We delivered a meaningful increase in e-commerce revenue during the quarter in addition to continued positive retail comparable growth. Our new boutiques are performing ahead of expectations, and are trending to paybacks under 18 months," said Brian Hill, founder, chief executive officer and chairman.
During the quarter, Aritzia expanded its boutique network with one new boutique opening at the Mall of America in Minneapolis, Minnesota.
Looking ahead, the company expects comparable sales in the third quarter to be in the low to mid-single digits, following exceptionally strong comp growth of 12.9 percent in the third quarter last year. For fiscal 2020, the company currently expects net revenue growth in the low double-digits.
It plans to open another two new boutiques in the U.S., and also plans to reposition its Coquitlam Centre boutique, in Greater Vancouver, which is scheduled to open in November.
"For the fall and winter season, we are excited about our expanded outwear offering which features enhanced product development across styles, fabrics and colours. Augmented by increased levels of interest from highly relevant celebrities, we expect our continued product innovation and marketing initiatives will drive strong brand engagement,” added 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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