(Bloomberg) -- Aritzia Inc. forecast a slow end to the year even as demand for its fall catalog boosted sales above expectations in its second quarter.
The Canadian retailer sees fiscal third-quarter sales of C$675 million to C$700 million, according to a statement Thursday, below the average analyst expectation of C$738 million. It also trimmed the top end of its full-year revenue guidance.
The soft forecast suggests Aritzia may struggle to meet investor expectations for its planned rapid expansion, especially in physical stores in the US and online sales.
Revenue in its second quarter was C$616 million, above an expected C$583 million, after Aritzia said “trends accelerated in August.” Profit also came in better than anticipated.
“Although we’re navigating a softer consumer environment in Canada, we’re pleased with the positive client response to our Fall launch on both sides of the border,” Aritzia Chief Executive Officer Jennifer Wong said in a statement.
Aritzia opened three stores in the second quarter, one fewer than analysts had expected.
©2024 Bloomberg L.P.