Sales and profit at Vancouver-based women’s fashion retailer Aritzia Inc. soared in the company’s first quarter, which ended May 28, the company announced July 11. That sent shares in the company (TSX:ATZ) up more than 10% on July 12.
While sales jumped 15.1% to $167 million in the quarter, compared with the same quarter a year ago, it was profit that saw the huge spike. Net income for Aritzia increased by 51.2%, to $12.3 million, up from $8.1 million in the same quarter a year ago.
All indicators seemed to be pointing up for the company. Its gross profit margin, for example, was also up to 40.4%, compared with 39.7% in the same quarter a year ago.
Part of the reason for the great results could have been the global attention that Aritzia gained when Duchess of Sussex Meghan Markle was spotted wearing an Aritzia trench coat in April, at the University of Bath following the Invictus Games.
“Looking ahead, we remain focused on executing our key strategic growth initiatives including accelerating our e-commerce growth, enhancing our store network, and strengthening our infrastructure while delivering product that our customer wants,” said Aritzia CEO Brian Hill in a statement. “We continue to build our world-class team and remain on track and confident in our ability to achieve or exceed our long term performance targets.”
Aritzia's flagship store in Vancouver is a 13,027-square-foot location at the corner of Thurlow and Robson streets. The company that was founded in 1984 first opened a store on Robson Street in 1986.
Shares in Aritzia closed at $17.79, up 10.57% on July 12, at more than 10 times average volume.