Aritzia Income Statement

Summary: Aritzia is opening more stores in the U.S. after “its net income tumbled 39% compared to the same period last year” (Duhatschek, 2024). Aritzia is becoming notorious in the U.S., so it decided to open more locations there. The brand aims to increase its sales by expanding its branches to locations where there is more demand. Since there are countless locations for new stores, Aritzia aspires to open 8-10 stores each year in a few years. Doug Stephens claims “They can't just look at international growth as being the cure-all that will fix all their problems”. CEO Jennifer Wong states that more is being done. Aritzia is making room for new products by getting rid of extra inventory. Furthermore, Aritzia is producing new collections to attract

This risk results in more expenses for the business as it hopes for more sales. While measuring net income, one uses an income statement which is measured “during a period of time, such as a month, quarter, or year” (Ebert et al, 2015). Aritzia blames factors such as inflation for their loss in sales. Its expenses have probably increased due to factors like research and development for its new line. Since Aritzia is opening more stores, its property taxes are also increasing. All these factors and more are causing Aritzia’s net income to decrease, yet it is persevering and making changes accordingly. Business expansion Aritzia is expanding its locations in the U.S. because there is more demand there and potentially more sales. The “foreign demand for a company’s product may be greater than, the same as, or weaker than domestic demand” (Ebert et al, 2015): Aritzia’s demand in the U.S. is seen as greater than it is in Canada. Expanding a business internationally is not an easy choice because there are many factors that contribute to