Meghan Markle's Aritzia Wardrobe Helps Company's Earnings
Meghan Markle's Aritzia Wardrobe Drives Shares
(Bloomberg) -- A nod from the Duchess of Sussex is helping Aritzia Inc. attract global exposure.
Shares of the Vancouver-based fashion retailer touched a 52-week high on Thursday as first-quarter comparable sales growth reached 10.9 percent, compared with 9.3 percent in the same quarter last year. First-quarter adjusted earnings per share and revenue also topped analyst estimates.
"Excellent Q1 same-store sales growth highlights just how well consumers (including the newest member of the royal family) are responding to Aritzia’s" products, CIBC World Markets analyst Mark Petrie said in a note to clients.
Following the Invictus Games trials at the University of Bath in April, Markle was seen wearing an Aritzia trench coat. That same month, Harper’s Bazaar called Aritzia Markle’s go-to spot "for most of her accessibly-priced pieces."
"In particular, the strong growth in the U.S. - in-store and online - proves out a highly differentiated and on-trend concept with a growing following", Petrie added. CIBC thinks Aritzia has "many levers" to maintain outperformance ahead.
Aritizia sold 25 million shares for C$16 a piece during its initial public offering in September of 2016.
To contact the reporter on this story: Michael Bellusci in Toronto at mbellusci2@bloomberg.net
To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Scott Schnipper
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