Aritzia sees net income fall to $17.5 million in first quarter despite higher revenue

VANCOUVER –

Aritzia Inc. says its net income for the first quarter was $17.5 million, almost half of its net income of $33.3 million a year earlier.

The Vancouver-based retailer says net revenue for the quarter was $462.7 million, up 13.4 per centfrom $407.9 million during the same quarter last year.

The company says its gross profit margin was lower due to higher product-related costs amid inflationary pressures, temporary warehousing costs related to inventory management, and other headwinds partially offset by lower expedited freight costs.

Net income per diluted share was 15 cents, down from 29 cents a year earlier.

The company saw its retail net revenue increase 13.8 per cent to $327.6 million, while e-commerce net revenue was up 12.5 per cent and made up more than 29 per cent of overall net revenue for the quarter.

Net revenue from the U.S. was up 21.8 per cent, making up more than 54 per cent of overall net revenue.

This report by The Canadian Press was first published July 11, 2023.