Aritzia Inc. reported higher-than-expected sales growth as the clothing retailer adds new clothing styles and opens new store locations.

The Vancouver-based company reported revenue of C$498.6 million ($365.7 million) for its fiscal first quarter, which ended June 2, surpassing the average analyst estimate. Sales grew 7.8 percent from a year earlier.

The company, which bills itself as “everyday luxury” and specialises in women’s apparel, has focused on expanding its US presence, which the company expects will help drive sales. Aritzia plans to add at least 10 new stores in the US in the fiscal year. While Canada is still home to the majority of its locations, the US brings in more revenue.

“We’re encouraged by the positive response to both our new styles and client favourites,” Aritzia CEO Jennifer Wong said in a press release.

E-commerce expansion is another area of focus. Aritzia’s online sales growth has slowed coming out of the pandemic, so it has been working to improve its website, expand in-store pick up options and pilot a mobile application. E-commerce sales grew 4.2 percent in the first quarter.

Aritzia shares have gained 51 percent so far this year through Thursday’s close.

By Monique Mulima

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