Aritzia has strong quarter as it steps up U.S. push

TORONTO• Vancouverbased fashion retailer Aritzia Inc. reported a 15 per cent jump in fourth-quarter earnings Wednesday as the company expanded further into the United States.

The womenswear retailer, with 60 stores in Canada and 19 in the U.S ., reported earnings of $ 11.5 million in the period ended Feb. 26, up from $10 million in the same period last year.

The newly public retailer, which took to the markets in October with a $ 400 public share offering priced at $ 16 per share, said after market close that adjusted net earnings per share rose to 16 cents from 10 cents in the fourth quarter a year ago.

Aritzia’s North American expansion bucks years of shrinking store bases for some of Canada’s veteran apparel companies. Jacob has shuttered all but a handful of stores, as has leather goods retailer Danier, which reopened under new management last fall. Reitmans and Le Chateau, meanwhile, have folded banners and closed dozens of locations in recent years.

“The whole industry is suffering a little bit… but we manage to continue to per- form as well as we always have,” CEO Brian Hill told analysts on a conference call.

Aritzia is expanding into the U.S. as that country faces the highest level of store closings and bankruptcies since the 2008 recession. But Hill said foot traffic in Aritzia’s U.S. stores is increasing as the brand is gaining more awareness there.

Revenue rose 17.4 per cent to $ 196.4 million, up from $ 167.4 million in last year’s fourth quarter.

Same- store sales, an important measure of retail performance tallying volume at stores open for more than a year, jumped 11.5 per cent.

For the full fiscal year, revenue rose 23 per cent to $ 667.2 million and samestore sales were up 14 per cent, after a strong performance of 16.7 per cent in fiscal 2016.

Founded by Hill in 1984, Aritzia plans to open a minimum of 25 to 30 new locations in North America and expand or reposition a minimum of 20 to 25 existing locations by the end of fiscal 2021.

Aritzia’s shares rose 1.5 per cent to close at $15.35 on Wednesday before the announcement.