Aritzia sees its bottom line fall to $17.5 million in the first quarter

Posted on 07/11/2023 at 17:48

However, the Vancouver-based clothing retailer saw revenue stable at $462.7 million. (Photo: Denis Lalonde)

Aritzia reported first-quarter net profit Tuesday, down to $17.5 million, nearly half of the $33.3 million recorded in the same period a year earlier.

However, the Vancouver-based clothing retailer saw revenue of $462.7 million, up 13.4% from $407.9 million in the first quarter of the previous fiscal year.

The company explained that its gross margins declined due to higher costs associated with production due to inflationary pressures and related temporary storage costs.

Inventory management and other headwinds are partially offset by lower shipping costs.

Net earnings per share were 15 cents, down from 29 cents in the same quarter a year ago.

Aritzia reported 13.8% growth in retail net revenue to $327.6 million, while e-commerce net revenue increased 12.5% ​​and accounted for more than 29% of total net income for the quarter.

Net revenue in the US grew 21.8% year-over-year and accounted for more than 54% of the company’s total net revenue.

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