Canadian retailer Aritzia (ATZ) reported net income of $17.5 million for its fiscal first quarter, down 47% from $33.3 million a year earlier.
The Vancouver-based company blamed the profit decline on inflation and slowing consumer spending.
Revenue in the quarter totaled $462.7 million, up 13.4% from $407.9 million a year earlier. However, Aritzia said its gross profit margin fell due to higher product and warehousing costs.
The company saw its e-commerce revenue rise by 12.5% during the quarter, and online sales comprised nearly 30% of revenue during the period.
Looking ahead, Aritzia said it expects revenue in its fiscal second quarter to be flat or slightly down compared with a year earlier.
The company is forecasting full fiscal year revenue of between $2.25 billion and $2.35 billion.
Aritzia’s stock has decreased 6% in the past 12 months to trade at $33.63 per share.
