Aritzia saw its Q3 net income drop, sales rise as chain offered higher markdowns

VANCOUVER Aritzia Inc. reported its net income dropped by roughly 39 per cent to $43.1 million in its most recent quarter but its net revenue edged up by almost five per cent. The Vancouver based apparel retailer says its third quarter results compared with a net income of $70.7 million a year prior.

Net income for the period ended Nov. 26 amounted to 38 cents per diluted share compared with 61 cents per diluted share in the third quarter of the prior year. Net revenue reached $653.5 million, up from $624.6 million a year earlier. During the quarter, the company says it used higher markdowns to optimize its inventory levels and incurred pre opening lease amortization costs for flagship boutiques.

However, the company benefited from lower warehousing and freight costs. Its adjusted net income was $52.7 million, a 31 per cent drop from $76.6 million in the third quarter of its fiscal 2023. This report by The Canadian Press was first published Jan. 10, 2024. Companies in this story: (TSX:ATZ).