Aritzia Q2 sales hit by Covid-19 but online sales surge

Canadian womenswear brand Aritzia has reported a Covid-related drop in revenue for the second quarter of the year, slightly offset by surging online sales.

For the quarter ended August 30, net revenue at the brand fell 17 percent year-on-year to 200 million dollars, which the company attributed to occupancy restrictions, reduced operating hours and partial boutique closures related to Covid-19.

That drop was partly offset by an 82.3 percent surge in e-commerce sales.

At the beginning of the quarter, 31 percent of the company’s boutiques were reopened, increasing to 96 percent by the end of the quarter. Sales for the reopened stores trended on average at 70 percent of last year's productivity levels for the quarter.

The company reported a net loss of 0.9 million dollars for the quarter, compared to net income of 17.9 million dollars last year.

“We are pleased with the ongoing recovery of our business in the second quarter,” said founder and CEO Brian Hill. “In-boutique demand exceeded our expectations as clients returned with enthusiasm to our reopened boutiques, while the strength of our eCommerce business continued, delivering 82 percent growth compared to the second quarter last year.

“Our increasing revenue combined with highly effective inventory and cost management allowed us to maintain our strong cash position.”

Hill added that 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.”

Photo credit: Aritzia, Facebook