Aritzia 4Q E-Commerce Revenue Increases 81%
On May 11, Aritzia (ATZ) announced financial results for the fourth quarter and full-year fiscal 2021. The fashion retailer posted lower revenues and profit than a year earlier, as lockdowns Read More... The post Aritzia 4Q E-Commerce Revenue Increases 81% appeared first on TipRanks Financial Blog.
On May 11, Aritzia (ATZ) announced financial results for the fourth quarter and full-year fiscal 2021. The fashion retailer posted lower revenues and profit than a year earlier, as lockdowns forced the company to close stores.
Aritzia’s revenue for 4Q 2021 came in at C$267.5 million, a decrease of 2.9% versus the prior-year quarter. The company had to temporarily close 39 out of 101 stores for most of the quarter. eCommerce revenue grew 81.1% relative to 4Q 2020. Adjusted net earnings amounted to C$0.16 per diluted share, down from C$0.21 per diluted share in the fourth quarter of the previous year.
As for full-year fiscal 2021, Aritzia’s revenue came in at C$857.3 million, down 12.6% from the previous fiscal year. The decrease in net sales was primarily due to COVID-19 and the related temporary store closures but was partially offset by growth in e-commerce. eCommerce revenue grew 88.3% to C$425.9 million, or 49.7% of net revenue, due to increased traffic and conversion. Adjusted net income per diluted share amounted to C$0.23, down from C$0.87 in fiscal 2020.
Aritzia’s Founder, Chairman, and CEO Brian Hill said, "We're excited by the strong start to fiscal 2022, on-track to more than double our first-quarter net revenue compared to last year, reflecting a previously unseen acceleration of sales in the United States and continued growth in our eCommerce business. Looking ahead, we are expediting investments across our four key strategic growth drivers: digital innovation of eCommerce and omni, geographical retail expansion, ongoing product development, and brand awareness. We will continue to expand our high-performing team, evolve our processes for even greater efficiency, and enhance our technology to fuel our long-term growth."
For fiscal year 2022, Aritzia expects net revenue growth of 30% to 35% from fiscal year 2021, driven by continued growth in its eCommerce business, continued recovery in retail performance, and contribution from more store openings. (See Aritzia stock analysis on TipRanks)
Last week, Canaccord Genuity analyst Derek Dley reiterated a Buy rating on the stock with a C$35.00 price target for a 15.7% upside potential.
The rest of the Street is bullish on ATZ, with a Strong Buy consensus rating, based on 4 Buys. The average analyst price target of C$36.50 implies an upside potential of 20.6% from current levels. Shares have risen by nearly 20% year-to-date.
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