Canadian retailer Aritzia (ATZ) has reported a 72% year-over-year increase in its quarterly profit as the company’s e-commerce sales takeoff.
The Vancouver-based company reported fiscal third-quarter net income totalled $74.1 million, up 72% from $43.1 million a year earlier.
Management at Aritzia attributed the spike in the company’s profit to e-commerce sales that rose 14% year-over-year in the quarter, as well as lower markdowns and warehouse costs.
Executives added that the company’s efforts to expand into the U.S. are starting to payoff, with
net revenue attributable to the U.S. increasing 23.6% to $403.7 million as it opened stores in New York and Chicago.
However, despite the success achieved in the U.S. and with online sales, Aritzia’s sales in its home market of Canada dipped 0.6% year-over-year in the latest quarter to $325 million.
Aritzia attributed the decline in revenue growth in Canada to its annual warehouse sale, which this year was held in the second quarter rather than the third.
Additionally, Canadian consumers are struggling with a weakening economy.
Overall, Aritzia reported earnings per share (EPS) of $0.63, which was up 65% compared to $0.38 a year earlier. Revenue in fiscal Q3 rose 11.5% year-over-year to $728.7 million.
Looking ahead, management forecast fiscal fourth-quarter revenue of $830 million to $850 million. Aritzia is in the process of launching an enhanced e-commerce site and mobile app.
The stock of Aritzia has risen 115% over the last 12 months to trade at $56.99 per share.
