Aritzia’s Q2 2023 Performance Falls Short CEO Expresses Disappointment with $6M Net Loss

Vancouver-based fashion retailer known for its trendy apparel and accessories Aritzia Inc. (TSE: ATZ), has reported a net loss of $6 million in the second quarter of the financial year. The dismal has raised concerns prompting the company’s CEO Jennifer Wong, to admit the results do not meet Artizia’s ‘high standards’.

The second quarter loss for the period ended August 27 amounted to five cents per diluted share compared to a net income of 40 cents per diluted share in the same quarter last year.

The $6 million loss in the second quarter shows a significant departure from the net income of $46 million reported by the company in a similar quarter in the previous year. On adjusted basis, Aritzia’s net income totalled to $3.4 million compared to $50.6 million last year.

According to the CEO, the second quarter was marred with missed opportunities in its product assortment and a more difficult consumer environment.

Wong however pointed out that Aritzia performed better than expected at it generated net revenue of $534.2 million in the quarter up from $525.5 million last year.

While this increase might seem positive at first glance, it pales in comparison to the consistent double-digit growth Aritzia had been experiencing in recent years.