(Vancouver) Aritzia posted first-quarter net profit on Tuesday down to 17.5 million, nearly half of the 33.3 million recorded for the same period a year earlier.
The Vancouver-based clothing retailer, however, saw its revenue settle at $462.7 million, up 13.4% from $407.9 million in the first quarter of the previous fiscal 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.
Net revenues in the US grew 21.8% over last year, and accounted for more than 54% of overall company net revenues.