Particle.news
Download on the App Store
3 ARTICLES
·
3d ago

Aritzia Accelerates Supply Chain Shift as U.S. Tariffs Pressure China Reliance

The company aims to reduce Chinese production to under 10% by next spring while expanding its U.S. retail presence and digital platforms.

An Aritzia store is seen Tuesday, July 13, 2021, in Montreal. THE CANADIAN PRESS/Ryan Remiorz
An Aritzia store is seen Tuesday, July 13, 2021 in Montreal.

Overview

  • Aritzia plans to cut its reliance on Chinese manufacturing from 25% to 20% for the fall-winter season and further reduce it to mid-single-digit levels by next spring.
  • The company is diversifying production to 12 other countries, including Vietnam and Cambodia, and exploring new supplier partnerships to enhance its product offerings.
  • CEO Jennifer Wong attributes the accelerated supply chain shift to ongoing tariff uncertainty, which has disrupted global trade dynamics and increased costs.
  • Strong financial results, including a 31% revenue increase to $895.1 million and a fourfold rise in net income for the quarter ending March 2, are fueling Aritzia's growth strategy.
  • Aritzia is opening five new U.S. boutiques this year and plans to launch an upgraded e-commerce platform and mobile app by the end of the fiscal year.