Aritzia, the Canadian retailer, has announced higher sales in its fiscal third quarter, defying the difficult retail climate. The company’s shares soared nearly 19% in early trading, reaching 31.47 Canadian dollars ($23.52).
According to a poll on FactSet, Aritzia’s revenue for the period ending November 26 showed a 4.6% increase, totaling C$653.5 million. This surpasses expectations set at C$623.2 million.
Although profits decreased compared to the previous year, Aritzia reported a profit of C$43.1 million, or C$0.38 per share. This is down from C$70.7 million or C$0.61 per share. However, adjusted earnings performed better than anticipated, coming in at C$0.47 per share against the projected C$0.41 per share by analysts.
Aritzia has also adjusted its full-year sales outlook to a range of C$2.32 billion to C$2.34 billion—raising it slightly from the previous guidance of C$2.25 billion to C$2.35 billion. FactSet analysts predicted sales of $2.29 billion.
Looking ahead to the current quarter, Aritzia aims for sales ranging from C$670 million to C$690 million. In contrast, analysts are forecasting sales of approximately C$672.5 million.
Despite challenging market conditions, Aritzia continues to thrive.