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“Aritzia is a vertically integrated design house that delivers Everyday Luxury through engaging service, beautiful product, aspirational environments, and captivating communications. This season, Aritzia is excited to expand its Yorkdale boutique, complete with an A-OK Cafe, the brand’s signature in-house coffee shop,” said the brand. The latest expansion comes at a time when a number of retailers at Yorkdale are renovating or relocating. GUESS, which was formerly located beside Aritzia, will be opening a new storefront in part of the former Victoria’s Secret location in the mall. Mango will also be opening in the Victoria’s Secret space, which was vacated last year. Vancouver-based women’s fashion retailer Aritzia has debuted its renovated and expanded storefront at Toronto’s Yorkdale Shopping Centre.
Anti-Trend Items From Aritzia Our Fashion Editors Reach For Time and Again
The management has surpassed all goals quite comfortably even with the challenging environment for retail business during the pandemic. As per SimplyWallSt, CEO’s total compensation is below average for companies of similar size in the Canadian market. Net sales (50% weighting) and adjusted earnings before interest and taxes (50% weighting) are the performance criteria for PSUs granted in FY2022. We feel this aligns the interests of management and shareholders of Aritzia. Aritzia’s working capital averaged at 4% of revenue between FY2018 and FY2022.
C. Understanding Aritzia’s Brand: 5 key pillars
BCLiving is an award-winning, ultimate guide to living your best life in British Columbia—whether you’re a visitor to the province or a local looking for insider advice. An exclusively digital publication, we cover the pillars of local travel, food & drink, shopping & style, health & fitness, home & garden and entertainment. From now on, all store designs will mirror the Robson Street flagship with unique design elements such as an indoor raised garden, a marble slab wall and curated art pieces.
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If you are curious about why Aritizia is so popular then consider these five elements of its strategy. Our architects and designers consider each boutique individually, creating a bespoke mix of local influences, natural materials, custom furniture and art. Think well-lit fitting rooms, extra-large mirrors and a cozy lounge area — make yourself at home. Aritzia Yorkdale features collections from most of the brand’s extensive portfolio of sub-brands, including Wilfred, Babaton, Tna, The Super Puff™ and Sunday Best. Retail Insider reported on Aritzia’s expansion goals in September 2022, at which time Karen Janes, Executive Vice President, Real Estate boutique Development for Aritzia, shared some of the plans. Back in 2020, Aritzia announced the opening of two pop-up locations dedicated solely to the Super PuffTM brand both titled Super World.
The average inventory days where 80 and the average payable days where 40. Aritzia’s inventory increased significantly between February 2022 and November 2022 to 159 days. It seems to be a strategic decision by the management, since Q4 tends to the biggest sales quarter for Aritzia, and the firm did not want to sales due to low inventory. Management also noted that most of the inventory is concentrated in client favorites. Aritzia is a design house with an innovative global platform.We are creators and purveyors of Everyday Luxury, home to an extensive portfolio of exclusive brands for every function and individual aesthetic.
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That wasn’t just good fortune, if Aritzia’s clothing didn’t have an in demand aesthetic then its clothing would never have caught the attention of the celebrities that wear it. “Aritzia’s commitment to impeccable customer service and high-quality fashion made them the perfect choice to open at Mall of America as their first Minnesota location,” says Rusche. The escalators have since been updated and are now part of the Aritzia store itself.
I like comparing Aritzia’s store experience to that of Starbucks for coffee. They have a curated mix of store design, architecture and music. Aritzia continued its expansion into menswear with its acquisition of Reigning Champ which it paid $63 million for in 2021 to acquire a 75% stake.
In January 2023, the company issued another normal course issuer bid where it may purchase up to 3.9 million shares. Aritzia’s revenue grew from $743 million in FY2018 to $2,002 million for the last twelve months (“LTM”) ended November 2022 at a CAGR of 22%. Out of its total revenue of $2,002 million, $1,325 million (or 66%) was from the retail segment and $677 million (or 34%) was from eCommerce segment. In this section we will dive into Aritzia’s historical store growth, and its store level economics both for new stores and expanded stores which are a key component of Aritzia’s strategy.
A Look Inside Aritzia’s Massive New Robson Street Store
The company also does not enter long term supply contracts with vendors. It has a formalized quality assurance program where the factories of manufacturers are audited by a third-party firm to ensure compliance with local laws and global standards. Aritzia witnessed same store sales growth (“SSS” or comparable sales growth) of between 7% to 10% between FY2018 to FY2020. After not reporting SSS growth during FY2021 and FY2022 due to store closures, the FY2023 SSS growth came in very promising at quarterly growth in high 20s (See Figure 15).
One of the keys to Aritzia’s success is understanding how to capitalize on the synergies between brick and mortar and eCommerce. Aritizia has over 100 stores and sees its stores as powerful marketing vehicles that lure customers in who then either shop in-store or later online. If you have been to an Aritzia store then you will know they are artfully designed with the kind of vibe that invites you to stay for a while.
With 74 boutiques open in Canada and the U.S., and a revenue of $542 million in FY2016, Aritzia went for an IPO in 2016 and started trading on the Toronto Stock Exchange. Interestingly, up to 2016, Aritzia had never closed a store in its 32-year history. Aritzia faced a challenging year in FY2021 when Covid-19 led to closure of several of its stores across the U.S. and Canada. However, Aritzia quickly pivoted its business and inventory to focus on online fulfillment and saw exponential eCommerce revenue growth FY2021 and FY2022. Aritzia is a fashion-forward boutique known for its stylish and contemporary women’s clothing. Aritzia provides a modern and inviting space for fashion enthusiasts to explore and discover their next wardrobe staple.
It will be interesting to see how this transaction pans out for Aritzia. Over FY2018 to LTM Nov 2022, Aritzia had average gross profit margins of 40%. Aritzia does not own manufacturing facilities for its products and sources them directly from manufacturers. As per the company’s IPO prospectus, it sourced goods from 50 manufacturer with the top 10 vendors contributing 51%.
Inside Aritzia, the Canadian retailer that's the hottest fashion chain in the U.S. - Financial Post
Inside Aritzia, the Canadian retailer that's the hottest fashion chain in the U.S..
Posted: Fri, 13 Jan 2023 08:00:00 GMT [source]
Around 80% of Aritzia’s SG&A expenses are comprised of employee costs. Aritzia did not disclose its eCommerce revenue prior to FY2020. However, as per its IPO prospectus, its eCommerce revenue in FY2016 as $65 million. At the current eCommerce revenue of $677 million, it has grown over 10x in the last seven years at a CAGR of 40%. Perhaps the most swoon-worthy part of the beautifully-designed store is its dressing room—where Aritzia's design team introduced elements inspired by geometric abstraction and hard-edge paintings.
We make the clothes you want to wear right now — in quality you can love forever. Aritzia’s original Holt Renfrew Centre location featured a narrow storefront with a retail area spanning just over 4,900 square feet. After annexing the former BCBG space as well as the escalator well, the expanded Aritzia flagship measures more than 11,400 square feet, making it one of the largest stores in the entire chain. BCBG closed all of its physical stores worldwide last year — its Holt Renfrew Centre location spanned just over 5,000 square feet on one level. At one time, the escalator well included upstairs access to music retailer HMV which closed in 2016 (the 9,000 square foot space was subsequently leased to Holt Renfrew which will expand by adding a new floor this year). Aritzia has also opened standalone stores for its Wilfred, Babaton and Tna brands which speaks to Aritzia’s ability to create so many winning brands.
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