The company increased on both top and bottom lines during the third quarter of its 2019 fiscal year, which ended Nov. 25. The results marked the company’s 17th consecutive quarter of in-store sales growth.
The Canadian company, which includes brands such as Wilfred, Tna and Babaton, credits its surge in popularity to Americans, like Gigi and Bella Hadid, Meghan Markle, Hailey Bieber and Kaia Gerber. Many of whom are “voluntarily representing our product,” Brian James-Beaumont Hill, Aritzia’s founder, chief executive officer and chairman, said during Wednesday night’s conference call.
On Dec. 6, Markle wore a $350 Wilfred Cocoon coat to a meeting with the Association of Commonwealth Universities at King’s College London. An Instagram post with Markle donning the jacket generated more than 321,000 likes.
The month before, Bella Hadid was spotted wearing a puffy white $228 Artizia jacket in New York.
“I’m excited by the level of support we have from key fashion influencers in the industry,” Hill said.
Still, some of the influencers were intentional. Like Kendall Jenner, who became the face of the “extraordinarily successful” Super Puff parka campaign last fall.
Either way the company is benefiting from the exposure.
Revenues grew to $242.8 million Canadian dollars during the quarter, up from $204.4 million the year before. That’s an increase of 18.8 percent. Income was also up to $32.6 million, compared with $28 million a year ago. Meanwhile, company shares have risen roughly 16.4 percent in the last year.
Hill said influencers will continue to be part of the company’s marketing strategy in the future, and said the excitement caused by celebrities has translated into increased sales both in store and online, as well as an increased fan base in the U.S.
“In the U.S., our brand affinity continues to grow,” he said.
During the quarter revenues in the U.S. increased 39.6 percent over the same period last year. The recent launch of a denim line, which Hill said sold out, helped drive sales. So did the Super Puff parkas and the release of “an extremely expensive” leather jacket — with a four-digit price tag, a price point that the company hadn’t reached before — which also sold out.
“Quite frankly, that one actually left us probably a little bit more confused on insight that we did so well with the product at that price point,” Hill said. “So we’re continuing to build on all our successes.”
The company also recently opened boutiques in Quebec City and Toronto, and plans to open four stores in the U.S., in addition to the existing two, through 2020.