Retailer Aritzia on track to replicate Canadian success in the U.S.: CEO

Aritzia Inc.’s chief executive says the clothing retailer is making progress in its efforts to make his brand as popular in the U.S. as it is in Canada.

Jennifer Wong told analysts on Thursday she was pleased with the company’s performance south of the border.

“After 40 years in business, we are very well known and loved in Canada and we are well on our way to replicating that love in the United States,” she said.

Aritzia, founded in Vancouver in 1984, has long been popular with Canadians, with brands like TNA, Wilfred, Babaton and Reigning Champ attracting younger customers as well as celebrities like Hailey Bieber and Jessica Alba.

In 2007, the company set its sights on the U.S., opening its first stores there that same year. Today, 52 of its 119 stores are in the U.S., and Wong believes that’s just the beginning.

“The opportunities to grow our brand remain enormous,” Wong said.

In the past 12 months, Aritzia has opened five new boutiques and remodeled four more. In the current quarter, it welcomed customers to a location in Boca Raton, Florida, and said it plans to open three more locations this year in Florida, Texas and California.

Wong said store openings are the company’s “most consistent and predictable” growth driver.

They often exceed company predictions.

The Boca Raton store alone has beaten Aritzia’s internal projections by more than 35 percent, and the company expects to cover its store opening costs within 10 months, down from the original 12 to 18 months it had anticipated.

Wong was also thrilled that in the Boca Raton store’s first week, more than 60 percent of customers were new to Aritzia. Another location that recently opened in Sacramento, Calif., saw 50 percent new customers in its first month.

“It’s very encouraging,” Wong said.

The insight into the company’s U.S. presence comes after Aritzia reported revenue of $15.8 million in the first quarter, down from $17.5 million a year earlier.

Earnings per diluted share were 14 cents in the period ended June 2, down from 15 cents in the prior year.

Aritzia’s adjusted net income was $25 million, compared with $11.2 million a year earlier.

The company’s net revenues totaled $498.6 million, up from $462.7 million.

Retail net revenue rose 9.2% year-over-year to $357.8 million, while e-commerce net revenue jumped 4.2% to $140.8 million.

This report by The Canadian Press was first published July 11, 2024.

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Tara Deschamps, The Canadian Press