Aritzia capped a challenging 2020 by sustaining most of its revenue in the fourth quarter thanks to growth in e-commerce sales despite government-mandated store closures.
The Vancouver-based clothing retailer says revenues were $267.5 million, off just 2.9 per cent from $275.4 million a year earlier, as e-commerce revenues increased 81 per cent in the quarter. It says 39 per cent of its boutiques were closed for a majority of the quarter due to forced lockdowns.
Aritzia earned $16.1 million for the three months ended Feb. 28, down from $21.7 million a year earlier.
Adjusted profits decreased 24.5 per cent to $17.7 million from $23.4 million in the prior year. That translated into 16 cents per diluted share, down from 21 cents per share in the fourth quarter of 2019.
Aritzia was expected to report five cents per share in adjusted profits on $254.1 million in revenues, according to financial data firm Refinitiv.
For the full-year, the company’s net income plunged to $19.2 million on $857.3 million in revenues, down from $90.6 million on $980.6 million in revenues in 2019.
E-commerce sales surged 88 per cent for the year and accounted for about half of overall revenues, more than doubling its penetration of 23 per cent in the prior year.
“We’re excited by the strong start to fiscal 2022, on-track to more than double our first quarter net revenue compared to last year, reflecting a previously unseen acceleration of sales in the United States and continued growth in our e-commerce business,” stated founder, CEO and chairman Brian Hill.