Aritzia beats estimates with full year revenue jump
Canadian retailer Aritzia ended the year on a high note, announcing on Thursday record fourth quarter and full year revenue results.
The women’s fashion retailer reported a net revenue of $743.3 million for the full fiscal year ended February 25, 2018, up 11.4 percent.
The increase was primarily driven by the revenue from new, expanded and repositioned stores, as well as comparable sales growth of 6.6 percent, resulting from continued momentum in the Company's eCommerce business.
Gross profit was also up by 11.3 percent to $295.5 million, or 39.8 percent of net revenue, while net income was $57.1 million, compared to a net loss of $56.1 million in the prior year.
Meanwhile, in its fourth quarter, net revenue increased by 11.9 percent to $219.8 million from $196.4 million in the fourth quarter last year. Six new stores opened since the same quarter last year and seven others expanded or repositioned. Comparable sales growth was equally up by 6 percent.
Gross profit was reported at $83.3 million, while net income for the quarter was $15.9 million, compared to net income of $11.5 million in the fourth quarter last year.
"Our record fourth quarter and full year net revenue and adjusted EBITDA results are a testament to our powerful business model. We delivered our 14th consecutive quarter of positive comparable sales growth, continuing to outpace the broader retail sector," said the company in a release. "Throughout the year we also made meaningful progress on our key strategic growth initiatives including enhancing our aspirational shopping experience with new stores and expansions, accelerating eCommerce, strengthening our infrastructure and continuing to deliver outstanding product innovation."
Looking ahead, the company said it expects to deliver full-year fiscal 2019 revenue growth in the mid-teens.
"Our first quarter of fiscal 2019 is off to an excellent start as we continue to delight our customers with our spring and summer collections. We are confident in the momentum we are building and look forward to delivering our 15th consecutive quarter of positive comparable sales growth,” reads the release from the company.
Aritzia, which went public in October 2016, posted gross profit of $265.5 million in fiscal 2017.
The company was founded in 1984 and is based in Vancouver, Canada.
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