(Vancouver) Aritzia on Tuesday posted first-quarter net profit down to $17.5 million, nearly half of the $33.3 million posted for the same period a year earlier.
The Vancouver-based clothing retailer, however, saw revenue of $462.7 million, up 13.4% from $407.9 million in the first quarter last year.
The company explained that its gross margins declined due to higher costs associated with production due to inflationary pressures, temporary warehousing costs related to inventory management and other headwinds partially offset by a lower shipping costs.
Net earnings per share were 15 cents, down from 29 cents in the same quarter last year.
Aritzia reported 13.8% growth in retail net revenue to $327.6 million, while e-commerce net revenue soared 12.5% and accounted for more than 29% of overall net income for the quarter.
U.S. net revenue grew 21.8% year over year, and accounted for more than 54% of overall company net revenue.
