Canadian fashion mogul Aritzia (TSE: ATZ) has released their financials for the third quarter of fiscal 2018.
Aritizia’s 2016 IPO showed massive growth in the Canadian market and 2017 depicts a similar upward trend.
In 2017, the company’s net revenue increased by 9.6% to $204.4 million from $186.5 million. The weakening U.S. dollar year-over-year in the quarter negatively impacted revenue by $3.0 million.
The gross profit margin was $44.8%, compared to 44.1% in Q3 2017. These gains were primarily driven by continued improvement in product costs and positive impacts from the weakened U.S. dollar. Additionally, comparable sales growth was 6.3%, following 15.1% growth in Q3 2017.
Net income increased to $28.1 million, compared to a net loss of $8.1 million in Q3 of last year and adjusted net income increased by 11.4% to $30.6 million from $27.5 million.
Adjusted EBITDA increased by 10% to $50.0 million from $45.5 million in Q3 last year.
In terms physical growth, the company opened a new store at the Babaton Pacific Centre in Vancouver and expanded and relocated three existing stores (Eaton Centre, Scarborough Town Centre and Bellevue Square in Seattle) during Q3 of 2017.
"As we look ahead, we will continue to execute on our successful strategy by enhancing our product supply chain, developing beautiful, high-quality products, capitalizing on premiere real estate locations, and growing our eCommerce business and omni-channel capabilities,” said Brian Hill, Aritzia founder and chief executive officer.
“We are excited about the opportunities ahead and believe we are well positioned to meet or exceed our long-term growth goals."