Canadian company Aritzia's revenue rises 6.2% to $2.33 billion in FY24

Canada-based fashion retailer Aritzia reported a net revenue increase of 6.2 percent to $2.33 billion in fiscal year 2024 (FY24). This growth marks a significant step compared to the $2.20 billion recorded in fiscal 2023. Notably, this increase follows strong net income growth of 46.9 percent in fiscal 2023 and an impressive 74.3 percent in fiscal year 2022, resulting in three-year compound annual growth. growth rate (CAGR) of 39.6 percent. However, comparable sales saw a slight decline of 1.0 percent, in contrast to the 28.2 percent growth seen in fiscal 2023.

In the US, Aritzia saw a commendable 9.4 percent increase in net income, reaching $1.23 billion compared to $1.12 billion in FY23. Meanwhile, net income in Canada grew 2.9 percent to $1.11 billion, compared to $1.07 billion in the previous fiscal year, the company said in a news release.

In fiscal 2024, Aritzia saw a notable 6.2 percent increase in net revenue to $2.33 billion, continuing a strong growth trend over the past three years. While the US market showed strong performance with revenue growth of 9.4 percent, Canada saw growth of 2.9 percent. The fourth quarter of fiscal 2024 saw a 7 percent revenue increase.

Retail net revenue rose 8.5 percent to $1.55 billion, with new U.S. boutiques leading the way, although this was partially offset by weaker comparable sales. E-commerce net revenue, on the other hand, saw a modest 2.0 percent increase, reaching $785.3 million.

Gross profit, however, saw a slight decline of 1.6 percent to $899 million, with a gross profit margin of 38.5 percent compared to 41.6 percent in fiscal year 2023. Selling, general and administrative expenses increased 17.6 percent to $708.8 million.

Net income took a hit, falling 58 percent to $78.8 million, with net income per diluted share of $0.69, a decline of 57.7 percent. Adjusted EBITDA also saw a significant decline of 38.2 percent to $217.1 million, representing 9.3 percent of net revenue. Adjusted net income was $105.6 million, down 50.9 percent, with adjusted net income per diluted share of $0.92, down 50.5 percent.

In the fourth quarter of fiscal 2024 (Q4 FY24), net income increased 7 percent to $682 million, despite a 3 percent decline in comparable sales. U.S. net revenue increased 9.4 percent to $369.1 million, and retail net revenue saw a substantial 14.7 percent increase to $416.4 million. However, e-commerce net revenue saw a 3.2 percent decline to $265.6 million.

“As expected, we achieved further sequential margin improvement. Although the consumer environment remains heterogeneous, customers responded well to our product launches and the improved level of novelties in our assortment,” he said Jennifer Wong, CEO. “Throughout fiscal 2024, we are focused on investing in the scalability of our business and improving our inventory position, allowing us to return to our proven operating model and set the stage for our next phase of anticipated growth and recovery. margins”.

Fiber2Fashion News Desk (DP)