Aritzia posts quarterly loss as it recovers from pandemic prompted store closures

Aritzia posts quarterly loss as it recovers from pandemic prompted store closures
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VANCOUVER — Fashion retailer Aritzia Inc. says stores reopened after the COVID-19 pandemic lockdowns eased staged a remarkable comeback in its latest fiscal quarter but the company still posted lower revenue and profits than in 2019.

The Vancouver-based company behind the TNA, Babaton and Wilfred brands reports net revenue fell by 17 per cent to $200 million in the 13-week period ended Aug. 30, compared to $241 million in the comparable period last year.

It says the decline was mainly due to ongoing COVID-19 occupancy restrictions, reduced operating hours and partial boutique closures, partially offset by continued momentum from e-commerce revenue, which increased by 82.3 per cent from the year-earlier period.

It reports a net loss of $900,000, compared to net income of $17.9 million a year earlier, while adjusted net income was $1.0 million, compared with $19.8 million.

Aritzia beat analyst expectations for a net loss of $5.3 million on revenue of $191 million, according to financial markets data firm Refinitiv.

The Vancouver-based retailer closed its 96 stores in March and started a phased reopening of stores in May, with all stores now reopened.

“We are pleased with the ongoing recovery of our business in the second quarter,” said CEO Brian Hill.

“For the first six weeks of the third quarter, the momentum of our business continued to grow as a result of strong client response to the launch of our on-point fall collections and compelling marketing initiatives. While occupancy restrictions and stricter government directives will continue to impact our retail performance, our e-commerce business is well-positioned to continue to offset these measures.”

This report by The Canadian Press was first published Oct. 14, 2020.

Companies in this story: (TSX:ATZ)

The Canadian Press

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