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Aritzia closes all retail outlets amid growing COVID-19 mitigation efforts

Consumer
TSX:ATZ
16 March 2020 17:10 (EDT)
Aritzia Inc. - Chairman and CEO, Brian Hill

Source: Business In Vancouver

Fashion and design house, Aritzia (TSX:ATZ), has announced that it will close all of its retail outlets, effective today.

The company is one of the latest to join a string of others in shutting down. Growing concerns about COVID-19 and its widespread effects are fuelling drastic measures in an effort to curb the spread of the virus.

Brian Hill, founder, CEO and Chairman of Aritzia, confirmed that the company’s goal is to do its part for global well-being.

“As we navigate this complex and challenging landscape, we feel this is the best decision for our people, our clients, our partners and our community as a whole.

“Aritzia is committed to ensuring the financial continuity of both our internal team and the employees of our overseas partners impacted by COVID-19,” he added.

For the time being, customers will be able to make purchases via Aritzia’s online store.

Employees working at distribution centres which facilitate this service will be subject to increasing precautionary measures. Aritzia has also said that it will transition all Support Office staff to more flexible working arrangements.

“All of Aritzia’s profits, while we get through this challenging time, will go to the Aritzia Community Relief Fund to pay our people and support their families,” continued Hill.

The company reported a reasonably successful 2019 fiscal year in an announcement dated January 7, 2020.

Net revenue was up 14.6 per cent to C$705.2 million, while gross profit also increased 20.7 per cent to C$300.6 million.

At the time, and while likely unaware of the impact COVID-19 would come to have, Hill seemed optimistic.

“We are confident that investments across eCommerce, our premier boutique network, our world-class infrastructure, and exceptional talent will keep us well-positioned to deliver shareholder value as we continue to drive growth across products, channels, and regions,” he said.

Despite the short-term uncertainty and current market volatility, Aritzia’s management said today that it remains confident in the fundamentals of the company and its business model.

Aritzia (ATZ) finished trading today down 19.83 per cent to $13.06 per share, with a market cap of $1.43 billion.

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