Aritzia, a vertically integrated, innovative design house offering Everyday Luxury online and in its boutiques, today announced its second quarter financial results for fiscal 2022 ended August 29, 2021.
"The outstanding performance of the Aritzia brand continued through the second quarter of fiscal 2022. Our net revenue growth of 75% reflects accelerated momentum across all geographies and all channels. I am particularly excited by the unprecedented pace of growth in our business in the United States, as existing and new clients enjoy our Everyday Luxury experience on Aritzia.com and in our boutiques. Our eCommerce revenue continues to surge with 49% growth on top of the 82% growth that we saw in the second quarter last year. Sales in our boutiques were exceptional with comparable sales growth of 60% from fiscal 2021, whilst exceeding pre-pandemic levels with retail comps growing 14% from fiscal 2020," said Brian Hill, Founder, Chief Executive Officer and Chairman.
In an effort to expand its presence, Aritzia has set a goal of opening between eight and ten stores per year in the United States through 2027, according to its latest investor presentation.
The company's financial results for fiscal 2022 were impressive, with adjusted EBITDA reaching $119.6 million or 19.2% of net revenue, an increase of 9.5% compared to $109.3 million or 24.1% of net revenue in Q3 2022. Adjusted Net Income was $76.6 million, an increase of 7.6% compared to $71.2 million in Q3 2022.
Aritzia's outlook for fiscal 2023 is promising, with the company expecting net revenue in the range of $2.14 billion to $2.16 billion, representing an increase of approximately 44% from fiscal 2022. This is up from the company's previous outlook of $2.0 billion to $2.05 billion. The increase in revenue is driven by continued outperformance in the United States across both retail and eCommerce channels, as well as ongoing growth in Canada.
To support this growth, Aritzia plans to open eight new boutiques, including seven in the United States and one in Canada, and expand or reposition five existing boutiques, with four locations in Canada and one in the United States. The company aims to capitalize on premier real estate for new locations while continuing to elevate its boutique design and deliver exceptional experiences for its clients.
"The strength of our business across all geographies and all channels continues through the start of the third quarter. Looking ahead, expansion in the United States will be a leading driver of our growth. We are confident that eCommerce will continue to grow even on the back of 89% growth last year. Retail has surpassed our most optimistic expectations and is continuing to trend above pre-pandemic levels, now and for the foreseeable future. The performance of our new boutiques continues to outperform our expectations with significant investment focused on the United States, further fueling our brand awareness and multi-channel business. I remain incredibly grateful for the enduring loyalty of our clients and the effort of our team and their unwavering commitment to delivering Everyday Luxury," concluded Mr. Hill.
In addition to physical store expansion, Aritzia is also focusing on eCommerce acceleration. The company has grown its eCommerce business by 150% from fiscal 2020 to fiscal 2022 and plans to further fuel its growth by delivering eCommerce 2.0, connecting clients to tailored product discovery, creative innovation, and intuitive experiences. Aritzia will also create new digital platforms, such as a client app.
Overall, Aritzia's financial report for fiscal 2022 showcases the company's strong performance and ambitious plans for expansion in both the United States and Canada. With a focus on opening new boutique stores and enhancing its eCommerce presence, Aritzia is well-positioned for continued success in the coming years.
In addition to Aritzia's outlook above, Reigning Champ is expected to deliver approximately $14 million in net revenue and $3 million in Adjusted EBITDA(1) in the second half of fiscal 2022.
