Aritzia Shares Climb as Revenue Rises
Shares of Aritzia saw a surprising increase in revenue in the latest quarter, despite a loss and a projection of flat-to-lower revenue in the upcoming quarter.
At 2:05 pm E.T., shares rose by 7.5%, reaching US$23.99. However, the stock has experienced a significant decline of 35% in the past three months and 49% since the beginning of the year.
In their fiscal second quarter report, which ended on August 27th, the Canadian women's fashion brand announced that revenue had risen to 534.2 million Canadian dollars (US$396 million) from the previous year's figure of C$525.5 million. Analysts' sales forecasts, based on FactSet polls, had anticipated lower sales of around C$519 million.
Aritzia attributed this growth to a 3% increase in revenue from their retail channel. CEO Jennifer Wong explained that this improvement was a result of progress made in their real estate expansion strategy. She stated, "The performance of our new and expanded boutiques remained strong and continues to exceed expectations."
Recently, Aritzia introduced its buy online, pick up in-store, and ship from store service in Canada. The initial results of this omnichannel pilot have surpassed management's revenue expectations, leading to plans for a U.S. rollout after the holidays.
WSJ: Sabela Ojea
All Rights Reserved © 2024
Post a comment