Shoppers wait in line to enter newly opened women's clothing store Aritzia on Michigan Avenue on Black Friday on Nov. 29 in Chicago, Ill.Kamil Krzaczynski/Getty Images
Vancouver-based Aritzia Inc. ATZ-T has raised its outlook for annual revenue growth, as the women’s fashion retailer reported record-breaking holiday sales and continued to expand its store presence in the United States.
The company reported Thursday that it saw both e-commerce and in-store sales increase in the three months ended Dec. 1, 2024, amounting to a nearly 72-per-cent increase in third-quarter profits.
Aritzia, which operates 127 stores in Canada and the U.S., also saw an increase in holiday sales, including in its “Black Fiveday” promotion, even as many retailers noted subdued demand during the crucial Black Friday holiday shopping period.
The company reported third-quarter net income of $71.4-million or $0.63 per diluted share, compared with $43.1-million or $0.38 per diluted share in the same period the previous year. Net revenue increased by 11.5 per cent compared with the prior year, to $728.7-million.
Aritzia’s sales growth tends to be driven by its U.S. business. The retailer has been spending more money on marketing in recent months – something that has not previously been a priority. Awareness among shoppers was also helped by the opening of new, larger flagship stores in New York and Chicago, as well as other store openings in the U.S.
In addition, Aritzia has improved the balance in its product mix between new items and core styles that customers continue to buy, chief executive officer Jennifer Wong told analysts on a conference call Thursday.
Even the climate co-operated in many markets, as colder weather helped to increase outerwear sales. While the company has been offering markdowns both before and after Christmas, Aritzia’s sales are not driven solely by promotions, Ms. Wong added.
“The sales momentum continued even when we were off-sale,” she said.
In its last quarterly report in October, Aritzia noted a “bifurcation” between U.S. and Canadian consumers, with demand slowing among shoppers on its home turf, while American stores saw stronger momentum.
While macroeconomic challenges persist in Canada, Ms. Wong said on Thursday, customers have responded well to the product assortment and sales in this market have improved.
For the full fiscal year, Aritzia now expects revenue to grow by roughly 15 per cent compared with the prior year, to between $2.67-billion and $2.69-billion. The company’s previous guidance had predicted full-year net revenue between $2.54-billion and $2.60-billion.