Aritzia expects real estate expansion to drive full-year revenue

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The Vancouver-based fashion retailer Aritzia Inc. has revealed its sales projections for the current fiscal year, and they’re looking good. The company is expanding into the US market, and they’ve revamped their product lineup to try to rekindle customer engagement after the pandemic.

The business expects fiscal-year sales of between C$2.52 billion and C$2.62 billion ($1.84 billion to $1.92 billion), as said in a statement issued on Thursday. This prediction represents a significant increase of 8 to 12% and is in line with the average analyst prognosis of C$2.62 billion. The expected gain is a result of the momentum in real estate expansion and e-commerce initiatives, according to CEO Jennifer Wong.

Earnings per share (EPS) for the fourth quarter of 2018 for Aritzia were C$0.34, on revenue of C$682 million, which was higher than the average analyst forecast of C$0.32.

Even though 2023 was a rough year for Aritzia, with pandemic-related inventory issues causing a 42% drop in stock value, the company is determined to get back on track. New flagship stores in major cities like Chicago and New York City are part of the company’s plan to win back customers, along with a revamped collection of designs. Notably, as of Thursday’s close, the company’s stock had recovered, having soared 31% from the start of the year.

“Although the consumer environment remains mixed, clients responded well to our product launches and to the improved level of newness in our assortment,” Jennifer Wong, CEO, said.

After launching five boutiques in the last fiscal period, Aritzia is planning to establish another eleven to thirteen this fiscal year, continuing its expansion momentum. In the face of intense competition in the retail industry, the company is steadfast in its pursuit of long-term growth and success by staying true to its strategic vision of providing attractive fashion products and outstanding customer service.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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