Aritzia Inc. pleasantly surprised in the third quarter with an unanticipated boost in sales, fueled by new styles and strategic markdowns. The Vancouver-based retailer reported revenue reaching C$653.5 million ($488m), surpassing the average analyst estimate of C$621.9 million. Sales saw a notable 4.6% increase compared to the previous year, contrary to analysts’ projected decline.
Adjusted earnings stood at C$0.47 per share, outperforming the average estimate of C$0.41. Despite a mixed consumer environment, Aritzia’s CEO, Jennifer Wong, attributed the sales growth to positive customer responses to new styles and outerwear offerings.
Looking ahead, Aritzia’s management anticipates the introduction of fresh styles for the spring, aiming to further engage customers and drive sales. The company also expresses optimism about resolving inventory issues by that time.
Aritzia, which experienced a nearly 50% drop in share value in 2023, is pinning its hopes on long-term plans for U.S. expansion to reignite growth. Bloomberg Intelligence Senior Industry Analyst Mary Ross Gilbert noted that newer stores and expansions are thriving upon opening, drawing in a new market and contributing significantly to revenue and profit.
For the current quarter, Aritzia forecasts sales ranging from C$670 million to C$690 million, surpassing the estimate of C$677.6 million. The anticipated strong contribution from the brand’s renowned Super Puff jacket adds to the positive outlook for seasonal sales.
