Aritzia Inc., a women’s apparel retailer known for its “everyday luxury” branding, has surpassed sales estimates, driven by introducing new styles and expanding its US presence.
The Vancouver-based company reported a revenue of C$498.6 million ($365.7 million) for its fiscal first quarter, ending June 2. This marks a 7.8 percent increase from the previous year, above analysts’ expectations.
Aritzia’s strategy focuses on the US market, with plans to open at least 10 new stores within the fiscal year. While the majority of its locations are in Canada, the US generates more revenue, indicating the effectiveness of their expansion strategy. CEO Jennifer Wong highlighted the favorable response to both new and established clothing styles.
E-commerce remains a focal point. Although online sales growth slowed post-pandemic, Aritzia has enhanced its website, expanded in-store pickup, and introduced a mobile app. These efforts have contributed to a 4.2 percent growth in e-commerce sales in the first quarter.
Aritzia’s market performance is robust, with a 51 percent increase in share value through Thursday’s close, showcasing investor confidence.