Aritzia reports third-quarter loss on one-time charge, sales up from year ago

VANCOUVER – Aritzia Inc. (TSX:ATZ) reported a loss in its latest quarter due to a one-time charge as its sales improved by 20 per cent compared with a year ago.

The fashion retailer said Monday it lost $8.1 million or eight cents per diluted share in the quarter ended Nov. 27 as a result of a charge related to the accounting treatment of its legacy option plan.

The loss compared to a profit of $15.6 million or 15 cents per diluted share in the third quarter last year.

On an adjusted basis, Aritzia said it earned a profit of $27.5 million or 23 cents per share for the quarter compared with an adjusted profit of $19.0 million or 16 cents per share a year ago.

Aritzia said net revenue totalled $186.5 million for the quarter, up from $155.4 million in the same quarter last year, while comparable sales improved 15.2 per cent.

The company also noted that its fourth quarter was off to a strong start as December comparable sales were up 12.9 per cent for the five-week period ended Jan. 1.

“In addition to delivering another quarter of double-digit comparable sales growth, we continued to make progress on our growth plans, including the expansion of our North American store footprint, and increased penetration of our eCommerce business,” said Brian Hill, Aritzia’s founder, chairman and chief executive.