Despite Increased Revenue and Strong Online Performance.
Aritzia, the Vancouver-based fashion retailer, reported a net loss of $6 million in its second quarter, which ended July 31, marking a significant decline compared to the $15.8 million net income recorded in the same period last year. The company attributed this loss primarily to the ongoing challenges posed by the COVID-19 pandemic, including store closures and reduced foot traffic..
Financial Performance:.
• Revenue: Aritzia’s total revenue for the second quarter climbed by 10.4% year-over-year, reaching $297.3 million. This increase was driven by a surge in online sales, which accounted for 56% of total revenue, compared to 18% in the second quarter of 2020..
• Comparable Sales: Comparable sales, which measure sales from stores open for at least a year, experienced a modest increase of 0.3% in the second quarter. This was attributed to the gradual reopening of stores and pent-up demand among customers..
• Expenses: The company’s total expenses escalated by 12.9% year-over-year, primarily due to increased occupancy and distribution costs associated with the reopening of stores and the expansion of its e-commerce operations..
Impact of COVID-19:.
The COVID-19 pandemic continued to cast a shadow over Aritzia’s operations in the second quarter. Store closures and reduced customer traffic due to health restrictions affected the company’s in-store sales. However, the company’s robust online platform and its ability to adapt to the changing consumer behavior helped mitigate some of the negative impact..
Management Commentary:.
Jennifer Wong, Aritzia’s CEO, expressed cautious optimism about the company’s future prospects, stating, .
