Aritzia reports 7.8% revenue growth in Q1 amid net loss

Canadian fashion retailer Aritzia announced on Thursday a 7.8% increase in net revenue, for the first quarter ended June 2, 2024, coinciding with a net loss. 

The Vancouver-based company said net revenues reached $498.6 million, with comparable sales growth of 2%, compared to $462.7 million in Q1 2024. 

By region, in the United States, net revenue surged by 13% to $284.7 million, comprising 57.1% of net revenue, driven by the company’s real estate expansion strategy and growing brand awareness. Meanwhile, in Canada, the brand’s home turf, net revenue increased by 1.5% to $214.0 million. 

Aritzia’s retail net revenue increased by 9.2% to $357.8 million, driven by strong performance of the company’s new and repositioned boutiques, as well as positive comparable sales growth in its boutiques. In the last 12 months, the company opened 5 new boutiques and repositioned 4 boutiques.

Likewise, e-commerce net revenue equally climbed 4.2% to $140.8 million, comprising 28.2% of net revenue. 

The retailer recorded a 9.4% decrease in net income, dropping to $15.8 million. Net income per diluted share was $0.14 per share, compared to $0.15 per share in Q1 2024.

“We are pleased with our performance during the first quarter of Fiscal 2025, as we generated an 8% increase in net revenue compared to the first quarter of Fiscal 2024 and delivered positive comparable sales growth in all geographies and all channels,” said Jennifer Wong, chief executive officer.

“Our top line was fueled by a 13% net revenue increase in the United States, driven by our real estate expansion strategy and growing brand awareness. Throughout the quarter we continued to optimize the composition of our inventory, which drove a sequential acceleration in sales trends each month. As expected, we also delivered meaningful improvement in our Adjusted EBITDA margin.”

Looking ahead, Aritzia expects net revenue in the range of $570 million to $590 million in the second quarter of Fiscal 2025, representing growth of approximately 7% to 10%. For the full fiscal year, Aritzia is forecasting net revenue in the range of $2.52 billion to $2.62 billion, representing growth of approximately 8% to 12% from Fiscal 2024. 

“As we navigate a dynamic consumer environment, we’re encouraged by the positive response to both our new styles and client favourites. Our new boutiques continue to perform ahead of expectations, and we are particularly excited about the extraordinary pipeline of boutique openings this year, representing 50% square footage growth in the United States,” Wong added.

“We expect further improvement in our eCommerce business driven by product optimization and strategic investments. We are confident that our real estate expansion strategy, digital initiatives, and growing brand awareness in the United States will enable us to deliver consistent, profitable growth for years to come.”