Aritzia sees rise in sales and profit; new stores on horizon

E-commerce growth said to be strong although not quantified
Aritzia has more than 80 stores across North America and two more are planned to open by the end of August | submitted

Vancouver fashion retailer Aritzia saw steady growth in sales and profit as it continues to expand its network of stores and its e-commerce offerings.

The womenswear seller (TSX:ATZ) generated $8.1 million in profit on $145 million in sales during the 13 weeks that ended May 28, the company revealed July 12. That’s a 4.9% increase in profit, or net income, and a 14.7% rise in sales, or net revenue, compared with the same 13 weeks a year ago – a time period that the company considers its first quarter.

New stores have accounted for some of that sales growth but the company racked up a 9.3% increase in comparable sales from stores that have been open at least a year. Aritzia did not break out exactly what its e-commerce sales were, nor its growth rate for those sales.

“We continue to manage our business for sustained, long-term growth and are making investments to best position the company to broaden our customer base, and drive increased sales volume and further margin expansion,” said Aritzia CEO Brian Hill in a release.

Aritzia has more than 80 stores and it plans to open two new stores by the end of August: a flagship Aritzia-branded store on Rush Street in Chicago and a store under Aritzia’s Babaton banner in Toronto’s Yorkdale Centre. Since the first quarter ended, Aritzia has also expanded and repositioned a different Toronto store.

Aritzia also plans to open two new stores and expand or reposition four to five existing locations by next February.

That includes repositioning an existing San Francisco location into a flagship store on Market Street.

Aritzia raised $460 million when it went public in an initial public offering (IPO) on the TSX in October and then it closed a $382 million secondary offering in late January. The company priced its shares at $16 for the IPO and the shares initially closed higher. Shares have since sagged, however, and closed up $0.35 to $14.99 on July 12, before the company released earnings.

The company’s roots in Vancouver go back to 1984.

gkorstrom@biv.com 

@GlenKorstrom 

comments powered by Disqus

More from Retail & Manufacturing

BIV on Global BC July 24, 2017: Customers boycott Sears sales; Okanagan ...

Tyler Orton discusses customers boycotting Sears liquidation sales amid layoffs. Plus: Okanagan wine sector to get $100m investment

Read Article

B.C. retail-sales growth tops among provinces

Auto sales and building materials helped drive increases in May

Read Article

BIV on Global BC July 20, 2017: Pot tax revenue; Fake Vancouver ...

Tyler Orton discusses a report that argues Canadian pot tax revenue is likely to be less than expected. Plus: Officials warn of fake Vancouver Stock ...

Read Article

Canadian marijuana tax revenue likely less than expected: study

C.D. Howe Institute study estimates $400M to $450M annually

Read Article

Sears Canada gets green light to start liquidation sales this week

Read Article

Subscribe to our mailing lists

You may withdraw your consent at any time.

* indicates required

Newsletters

* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
Business in Vancouver Media Group
303 West 5th Avenue, Vancouver, British Columbia
V5Y 1J6 · Canada
604-688-2398
×