Canadian fashion retailer Aritzia Inc. has reported a 7.8% increase in net revenue to $498.6 million in the first quarter of fiscal year 2025 (Q1 FY25), compared to $462.7 million in the first quarter of fiscal year 2024. This growth was driven by a 2% increase in comparable sales, with all channels and geographies showing positive results.
Canada-based Aritzia’s fiscal 25 first-quarter net revenue rose 7.8 percent to $498.6 million, driven by a 2 percent increase in comparable sales. U.S. revenue rose 13 percent and Canadian revenue rose 1.5 percent. Retail net revenue grew 9.2 percent and e-commerce revenue grew 4.2 percent. Gross profit increased 22 percent, but net income fell 9.4 percent.
In the United States, net revenue increased 13.0 percent to $284.7 million, compared to $251.9 million in the same quarter last year. Meanwhile, in Canada, net revenue saw a modest increase of 1.5 percent, reaching $214 million compared to $210.8 million in the first quarter of fiscal year 24, the company said in a press release.
Retail net revenue increased 9.2 percent to $357.8 million from $327.6 million in the first quarter of fiscal year 2024. The number of boutiques at the end of the first quarter of fiscal year 2025 amounted to 119, up from 115 boutiques at the end of the first quarter of fiscal year 2024. E-commerce net revenue also showed growth, increasing 4.2 percent to $140.8 million from $135.1 million in the first quarter of fiscal year 2024.
Gross profit increased 22 percent to $219.5 million, compared with $180 million in the first quarter of fiscal year 2024, and gross profit margin improved to 44.0 percent from 38.9 percent. However, selling, general and administrative expenses increased 14.9 percent to $176.3 million, compared with $153.5 million in the same quarter of the prior year, representing 35.4 percent of net revenues compared with 33.2 percent in the first quarter of fiscal year 2024.
Despite these positive results, net income decreased by 9.4% to $15.8 million, compared to $17.5 million in the first quarter of fiscal year 2024. Net earnings per diluted share decreased by 6.7% to $0.14 per share, compared to $0.15 per share in the previous fiscal year.
On an adjusted basis, EBITDA was $53.9 million, or 10.8 percent of net revenue, representing a significant increase of 70.6 percent compared to $31.6 million, or 6.8 percent of net revenue, in the first quarter of fiscal year 24. Adjusted net income also saw a substantial increase of 122.7 percent to $25.0 million, versus $11.2 million in the first quarter of fiscal year 24. Adjusted net income per diluted share doubled to $0.22 per share, compared to $0.10 per share in the prior year, the release added. .
Inventory levels at the end of the first quarter of fiscal year 25 stood at $396.8 million, a decrease of 18.2 percent from $485.0 million at the end of fiscal year 2025. First quarter of fiscal year 24.
“In a dynamic consumer environment, we are encouraged by the positive response to both our new styles and customer favorites. Our new boutiques continue to outperform expectations and we are particularly excited about the extraordinary number of boutique openings this year, representing 50 percent growth in square footage in the U.S. We look forward to further improvement in our e-commerce business driven by product optimization and strategic investments,” he said. Jennifer Wong, Executive Director.
Fibre2Fashion (DP) Press Desk
