Aritzia reports increase in Q1 revenue, but profits narrow

Canadian womenswear brand Aritzia has reported an increase in revenue but a hit to profit in the first quarter ended May 28.

The company’s net revenue came in at 462.7 million Canadian dollars, up 13.4 percent, or up 4.1 percent on a comparable basis.

Revenue in its biggest market, the US, was up 21.8 percent to 251.9 million Canadian dollars and comprised 54.4 percent of total revenue.

The brand’s net profit in the quarter narrowed to 17.5 million Canadian dollars from 33.3 million Canadian dollars the prior year.

CEO Jennifer Wong said in a statement: “While we are seeing a more challenging consumer environment to start the second quarter and have identified opportunities in the level of newness in our product assortment, we remain disciplined in making further progress against our Fiscal 2024 priorities.”

She said those priorities include scaling its infrastructure to match growth, rightsizing its inventory position, and optimizing economies of scale across the business.

This article was written with the help of an AI tool