VANCOUVER — Clothing retailer Aritzia Inc. put together another attractive quarter as net profits soared 86 per cent on a big jump in revenues.
The Vancouver-based company says it earned $33.3 million or 29 cents per diluted share in the first quarter, up from $17.9 million or 16 cents per share a year earlier.
Excluding one-time items, adjusted net income was $40.9 million or 35 cents per share, compared with $21.7 million or 19 cents per share in the prior year.
Revenues rose 65 per cent to $407.9 million from $246.9 million in the first quarter of 2021 with same-store sales rising 29.4 per cent.
Retail revenues rose 71 per cent to $287.8 million while e-commerce sales increased 15.5 per cent to $120.1 million.
Chief executive Jennifer Wong said the strong performance was driven by the public reception to its spring and summer product line, and an 81 per cent increase in U.S. revenues.
"We are seeing this momentum extend into the second quarter, in spite of the challenging macro backdrop, as client demand remains strong," she said in a news release.
Aritzia raised its full-year revenue outlook to between $1.875 billion and $1.9 billion from the prior outlook of $1.8 billion.
Analyst Irene Nattel of RBC Capital Markets said the company's strategy of maintaining elevated inventory levels resulted in "impressive" results that beat forecasts.
"Unique positioning underpins strong performance, but investor concerns around recession holding back share price," she wrote in a note to clients.
"Performance of ATZ prior to, during and through COVID reinforces our views around the strength, sustainability and upside potential of the company’s unique business model. However, as an apparel retailer, equity markets concerned about sustainability of demand against the backdrop of rising rates/compressed consumer disposable income and likely, recession."
This report by The Canadian Press was first published July 7, 2022.
Companies in this story: (TSX:ATZ)
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