Aritzia, a Canadian women fashion brand has reported a net loss of $ 26.4 million during Q1 as compared to the net income of $ 16.1 million in Q1 FY20. The company has also reported a decline in revenue by 43.4 % to $ 111.3 million.
Gross profit for the quarter fell to $13.0 million (Q1 FY20: $85.5 million). Loss from the operations for Q1 FY21 was $31.4 million compared to income from operations were $28.7 million in the same period the prior year.
The company further reported that its net revenue for the first five weeks of the second quarter is down approximately 25 to 30 percent compared to last year. As of July 9, 2020, 89 of the 96 boutiques have reopened and are trending, on average, at 55 to 65 percent of last year’s productivity levels. E-commerce revenue growth for Q2 has moderated with the reopening of Aritzia’s majority of its boutiques and is currently trending 50 to 100 percent higher than last year.
“The first two weeks of the quarter, we saw a meaningful decline in our sales leading up to the closure of our 96 boutiques on March 16. We took immediate action to drive e-commerce revenue and manage expenditures to maintain liquidity and preserve our solid financial position,” Brian Hill, founder, chief executive officer and chairman, said in a press release.
“Our beautiful product assortment, best-in-class distribution center operations, aspirational website, and loyal clientele led to eCommerce growth in excess of 150 percent through to the end of the quarter,” Hill said.
