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Aritzia returns to sales growth in Q3

Vancouver-based women’s clothing retailer Aritzia Inc. saw a 4.1% increase in third-quarter sales due to a strong e-commerce business, after a two-quarter decrease in sales due to the Covid-19 pandemic. ..

Aritzia’s E-Commerce Sales Drive Revenue Growth in Q3-Instagram: @aritzia

Third-quarter net sales, which ended November 29, 2020, increased from $ 267.3 million in the year-ago quarter to $ 278.3 million. Retailer e-commerce sales increased 78.5%.

This digital advance was partially offset by reduced occupancy, reduced uptime, and reduced in-store sales due to government mandated closures associated with the ongoing coronavirus crisis.

After a temporary closure earlier this year, 96% of Aritzia’s retail fleet had reopened by the start of the third quarter. With 18 boutiques reclosed in November 2020, the company closed the quarter and 82% of its stores opened.

According to retailers, reopened stores tended to average 81.0% of productivity levels seen in the third quarter of the previous year.

Covid-19-related health and safety measures and quarterly human resources investment increased SG & A expenses by 16.7% year-on-year to $ 74.7 million, equivalent to 26.8% of retailer revenue. To do.

Therefore, Aritzia’s net income was $ 30.5 million, down from $ 34.8 million in the year-ago quarter.

“We are very pleased with our Q3 results. Our clients’ enthusiastic response to our Fall / Winter product lineup demonstrates our continued ability to adapt to changing lifestyles,” Aritzia said. Brian Hill, founder, CEO and chairman of the company, commented on the release.

Since the beginning of the year, the company’s net sales have fallen 16.4% from $ 75.2 million to $ 589.8 million. Nine-month net income was $ 3.2 million, down from $ 68.9 million in the previous year.

“The resurrection of Covid-19 has temporarily closed 39 boutiques, but we are in a position to continue to overcome uncertainty,” Hill added. “We will continue to invest in infrastructure, including world-class talent, while continuing to focus on promoting growth strategies such as e-commerce and omni digital innovation, geographic expansion, product development and brand awareness. To go.”

According to the company, e-commerce channels have maintained strong momentum in the fourth quarter so far and should help mitigate the effects of the most recent temporary store closure.

Aritzia currently operates in more than 100 locations across North America, including Vancouver, Toronto, Montreal, New York, Los Angeles, San Francisco and Chicago.

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Aritzia returns to sales growth in Q3

Source link Aritzia returns to sales growth in Q3

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