By Sabela Ojea
Shares of Aritzia on Friday climbed after the company unexpectedly posted a rise in revenue in the latest quarter despite swinging to a loss and guiding for flat-to-lower revenue in the upcoming quarter.
At 2:05 pm E.T., shares were up 7.5%, at US$23.99. The stock has, however, plunged 35% in the past three months, and 49% since the year started.
After the market close Thursday, the Canadian women’s fashion brand said revenue for the fiscal second quarter ended Aug. 27 rose to 534.2 million Canadian dollars (US$396 million) from C$525.5 million a year ago. Analysts polled by FactSet had forecast lower sales of C$519 million.
The company saw a 3% rise in revenue from its retail channel, driven by progress made on its real estate expansion strategy, Chief Executive Jennifer Wong said in a call with analysts.
“The performance of our new and expanded boutiques remained strong and continues to result in better than expected payback periods,” Wong added.
Earlier this month, Aritzia launched its buy online, pick up in store and ship from store service in Canada.
The preliminary results of the onmichannel pilot is exceeding management’s revenue expectations, with the U.S. rollout set to be completed after the holidays.
Write to Sabela Ojea at [email protected]
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