Geographically, net revenue in the United States saw an increase of 4.2 percent to $326.6 million, compared to $313.5 million in the same quarter last year. Canadian revenue showed stronger growth of 5.1 percent, reaching $326.9 million, up from $311.1 million in the third quarter of FY23, the company said in a news release.
Aritzia's Q3FY24 saw a 4.6 percent increase in net income to $653.5 million, with a three-year CAGR of 32.9 percent. Revenue from the United States and Canada increased 4.2 percent and 5.1 percent, respectively. Retail net revenue grew by 4.2 percent and e-commerce by 5.5 percent. Gross profit increased marginally, but net income fell 39.1 percent.
Aritzia's retail net revenue rose 4.2 percent to $441.1 million in Q3FY24, and e-commerce net revenue saw a slightly higher increase of 5.5 percent to $212. $5 million, compared to $201.4 million in Q3FY23.
Gross profit increased marginally by 0.1 percent to $270.9 million, compared to $270.7 million in Q3FY23. However, gross profit margin decreased to 41.5 percent from 43.3 percent the previous year.
Selling, general and administrative (SG&A) expenses increased significantly by 14.4 percent to $187.4 million, making up 28.7 percent of net revenue, up from 26.2 percent in the third FY23 quarter.
Net income saw a substantial decline of 39.1 percent, falling to $43.1 million from $70.7 million in Q3 FY23. Similarly, net income per diluted share decreased by 37.7 percent to $0.38 per share, compared to $0.61 per share in Q3FY23.
Adjusted EBITDA also decreased 23.3 percent to $91.8 million or 14 percent of net revenue, compared to $119.6 million or 19.2 percent of net revenue in Adjusted net income decreased 31.2 percent to $52.7 million, and adjusted net income per diluted share fell 29.9 percent to $0.47 per share.
Inventory at the end of Q3 FY24 was $397.0 million, showing a decrease of 21.9 percent from $508.4 million at the end of Q3 FY23.
“As we continue to deliver two years of unprecedented growth, resulting in a three-year net income CAGR of 33 percent in the third quarter of fiscal 2024, we remain focused on investing in the scalability of our business and preparing the stage for our next level of anticipated growth. Looking ahead, we expect to launch Spring 2024 with improved product assortment and inventory position. We are also accelerating our real estate expansion strategy through fiscal 2025 and working diligently to increase boosting our e-commerce through strategic investments in leadership, digital marketing and technology,” he said Jennifer Wong, CEO.
Fiber2Fashion News Desk (DP)
