Increasing the corporate’s footprint has had a “halo effect,” Wong said.
“When we open a new store and a new market … all the hype around the flagship openings and the marketing associated with them drives traffic to the e-commerce site,” she said.
Sales in Canada sluggish– with one exception
However, what Aritzia saw within the U.S. contrasted with Canada, where net sales fell 0.6% year-over-year to $325 million.
Aritzia attributed the decline in sales growth in Canada to the annual inventory sale, which occurred within the second quarter as an alternative of the third this yr. The most up-to-date sale brought net retail sales of $10 million in Canada.
It was also noted that the market was impacted by the dearth of a digital archives sale, which didn’t happen this yr but has increased sales in recent times.
Canadian consumers have been grappling with the fallout from an increase in inflation and rate of interest hikes to contain it, prompting many to curb their consumer spending.
Inflation continued to ease in 2024, setting the corporate up for a Black Friday that “broke all records,” based on Chief Financial Officer Todd Ingledew.
In the third quarter ended Dec. 1, which included the beginning of the vacation shopping season, Aritzia’s profit was 63 cents per diluted share, compared with 38 cents per diluted share within the third quarter of fiscal 2024.
