-By Mansi Suryavanshi.
INSIGHTS
- Aritzia, a fashion store, recorded net sales of $2.2 billion in FY23, an increase of 46.9%.
- Retail net revenue climbed 53.3 percent to $1.4 billion, while adjusted EBITDA for the year was $351.2 million.
- Net sales from online shopping increased 36.4% to $769.9 million.
- Aritzia’s net revenue rose 43.5% year over year to $637.6 million in Q4 FY23.
The apparel store Aritzia, with headquarters in Canada, recorded net sales of $2.2 billion, up 46.9% over the prior financial year. Outstanding momentum in the US, where net sales climbed by 65.8% to $1.1 billion, and significant growth in Canada, where net revenue increased by 31.3% to $1.1 billion, were the main drivers of the growth.
In FY23, the company’s adjusted EBITDA grew as well, rising to $351.2 million, or 16% of net sales, from $289.4 million, or 19.4% of net revenue, in the prior fiscal year. To reach $1.4 billion, retail net revenue climbed by 53.3%, driven by outstanding results from both new and existing boutiques in the US and double-digit comparative sales growth in Canada.
Despite the channel shift to retail in Eastern Canada, where 34 of the company’s boutiques were closed for a sizable portion of the year, Aritzia’s e-commerce net revenue in FY23 increased by 36.4% to $769.9 million, the company said in a press release.
Aritzia maintained its strong pace in the fourth quarter (Q4) of fiscal 2023, with net revenue rising by 43.5% to $637.6 million from $444.3 million in the same quarter the year prior. In comparison to the prior year, the company’s adjusted EBITDA for the quarter increased by 19.7% to $79.4 million.
As a result of extraordinary performance in both Canada and the US, retail net sales in Q4 FY23 climbed by 38.4% to $363.1 million, while e-commerce net revenue increased by 50.8% to $274.5 million. In Canada, the company’s net sales increased by 31.9% to $300.1 million from $227.5 million in the same period last year.
The CEO, Jennifer Wong, stated that “the strength in our business throughout all geographies and all platforms reflect the immense demand for our stunning, high-quality goods from both new and existing clients.” Our net revenue climbed by 47% for the whole fiscal year, driven mostly by the remarkable growth of 6% in the US, which now accounts for more than 50% of our total net sales. The robustness of our daily luxury experience is demonstrated by the excellent 53% growth of our retail channel and the 36% growth of e-commerce net sales in fiscal 2023.
