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Canadian fashion firm Aritzia's revenue rises 4.6% in Q3 FY24

Canadian fashion firm Aritzia's revenue rises 4.6% in Q3 FY24

Aritzia, a Canada-based fashion retailer, reported a 4.6 percent increase in net revenue in the third quarter of fiscal year 2024 (Q3 FY24), reaching $653.5 million, up from $624 .6 million dollars from the same quarter of the previous year. This growth comes after the company experienced substantial revenue increases of 37.8 percent in Q3 FY23 and 62.9 percent in Q3 FY22, culminating in a three-year compound annual growth of 32.9 percent. However, comparable sales growth slowed significantly to 0.5 per cent, down from 22.8 per cent in Q3FY23.

The company saw a 4.2 percent increase in net revenue to $326.6 million, while Canadian revenue grew 5.1 percent to $326.9 million. Retail net revenue increased 4.2 percent to $441.1 million, and e-commerce net revenue increased 5.5 percent to $212.5 million, reflecting continued expansion in both channels .

Aritzia's gross profit saw a marginal increase of 0.1 percent to $270.9 million, and gross profit margin decreased to 41.5 percent from 43.3 percent a year earlier. Selling, general and administrative expenses rose 14.4 percent to $187.4 million, representing 28.7 percent of net revenue, up from 26.2 percent, the company said in a Press release.

Canadian company Aritzia reported a 4.6 percent year-on-year revenue increase in Q3FY24 to $653.5 million, with slower comparable sales growth of 0.5 percent. Net income fell 39.1 percent to $43.1 million and adjusted EBITDA fell 23.3 percent to $91.8 million. The company's gross profit margin declined to 41.5 percent in Q3FY24.

Net income for the quarter amounted to $43.1 million, a sharp decline of 39.1 percent from $70.7 million in the third quarter of FY23. Consequently, net income per diluted share fell by 37.7 percent to $0.38, compared to $0.61 in the last year.

Adjusted EBITDA also saw a decline, falling 23.3 percent to $91.8 million, or 14 percent of net revenue, from $119.6 million, or 19.2 percent of net income. net income in the third quarter of 2023. Adjusted net income and adjusted net income per diluted share decreased to $52.7 million and $0.47 per share.

“Although the consumer environment remains mixed, we generated sales growth across all our geographies and channels as customers responded well to our new outerwear styles and offering,” he said. Jennifer Wong, CEO. “As expected, we saw sequential margin improvement in the third quarter and made continued progress in executing our fiscal 2024 priorities. Our new Toronto-area distribution center successfully advanced to accommodate record volume and we further improved our inventory position.”

Fiber2Fashion News Desk (DP)

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