VANCOUVER — Canadian clothing retailer Aritzia Inc. saw its earnings rise in its fiscal second quarter, thanks to higher retail and e-commerce revenue.
The Vancouver-based company said Thursday it earned $18.2 million in the second quarter of its 2025 fiscal year, an improvement over the nearly $6-million loss it incurred in the same quarter a year earlier.
It attributed the gains to the 24 per cent increase in net revenue it saw in the U.S. in the quarter, due in large part to its real-estate expansion strategy south of the border.
The company also said it saw a "meaningful acceleration" in e-commerce growth and strong sales growth in its boutiques.
In a news release, CEO Jennifer Wong acknowledged that the company is navigating a softer consumer environment on the Canadian side of the border, but is pleased with the positive customer response to its fall fashion line.
"The performance of our new and repositioned boutiques remains extremely strong, and we are particularly excited about the extraordinary pipeline of openings over the balance of the year," Wong said.
Aritzia, which was founded in Vancouver in 1984, has long been a Canadian favourite, with brands like TNA, Wilfred, Babaton and Reigning Champ drawing in younger shoppers, as well as celebrities like Hailey Bieber and Jessica Alba.
It set its sights on the U.S. in 2007, opening its first stores there that year, and continues to focus on new store openings to help drive growth.
In total, Aritzia opened three new boutiques in its second quarter, bringing its total number of boutiques to date to 122, up from the 116 it had at the end of its 2024 fiscal year.
Aritzia said Thursday its second quarter profit works out to 16 cents per diluted share, compared to a loss of five cents per diluted share in the second quarter of its 2024 fiscal year.
Its net revenue increased by 15.3 per cent year-over-year to $615.7 million, while its comparable sales growth was 6.5 per cent.
The company said its retail net revenue increased by 17.6 per cent to $425.6 million, primarily due to strong performance from the company's new and repositioned boutiques.
E-commerce net revenue increased by 10.4 per cent to $190 million, largely due to what the company said was traffic growth in the U.S., a strong response to its fall product line, and its investment in digital marketing.
This report by The Canadian Press was first published Oct. 10, 2024.
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