Expanding a company’s footprint has a “halo effect,” Wong said.
“When we open a new store and a new market … all the buzz is about the flagship opening and the marketing around it that drives more people into the e-commerce space,” he said.
Sales are slow in Canada– except for one
What Aritzia saw in the US, however, stood in stark contrast to Canada, where revenue fell 0.6% year over year to $325 million.
Aritzia attributes the decline in revenue growth in Canada to its annual inventory sales, which this year were held in the second quarter instead of the third quarter. The most recent sale brought in $10 million in net sales for Canada.
It also pointed out that the market was affected by the lack of sales of digital archives, which was not done this year but which has boosted sales in previous years.
Canadian consumers have been dealing with the effects of inflation and interest rate hikes to liquidate, causing many to cut back on discretionary spending.
Inflation continued to slow in 2024, setting the company up for a Black Friday that chief financial officer Todd Ingledew said “broke all records.”
In the third quarter, which ended Dec. 1 and kicked off the holiday shopping season, Aritzia’s earnings were 63 cents per diluted share, compared with 38 cents per diluted share in the third quarter of fiscal 2024.
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