Expanding a company’s footprint has a “halo effect,” Wong said.
“When we open a new store and a new market … all the buzz around the flagship opening and the marketing around it is driving more people to the e-commerce site,” 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 attributed the decline in revenue growth in Canada to its annual inventory sales, which 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 hampered by the lack of digital archive auctions, which were not held this year but have boosted sales in previous years.
Canadian consumers have been dealing with the effects of inflation and rising interest rates to a halt, which has caused many to cut back on their discretionary spending.
Inflation continued to ease 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 on Dec. 1 and included the start of 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 the 2024 fiscal year.
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