Aritzia’s third-quarter profit soars

Huang said increasing the company’s footprint will create a “halo effect.”
“When we open a new store and a new market … all the buzz around the flagship store opening and marketing does increase traffic to the e-commerce site,” she said.
Canadian sales sluggish——With one exception
However, Aritzia’s situation in the United States was in stark contrast to Canada, where net income fell 0.6% year-over-year to $325 million.
Aritzia attributed the decline in Canadian revenue growth to its annual warehouse sales, which this year were held in the second quarter instead of the third. The most recent sales resulted in net retail revenue of C$10 million in Canada.
It also noted that the market was affected by a lack of digital archive auctions, which were not held this year but have driven sales in past years.
Canadian consumers have been grappling with soaring inflation and the fallout from higher interest rates to curb it, leading many to cut back on discretionary spending.
Inflation continued to slow in 2024, and the company had a Black Friday that Chief Financial Officer Todd Ingledew said “broke all records.”
In the third quarter, which ended Dec. 1 and spanned the start of the holiday shopping period, Aritzia earned 63 cents per diluted share, compared with 38 cents per diluted share in the third quarter of fiscal 2024.