Vancouver-based Aritzia Inc. has reported its financial results for the second quarter of fiscal 2025, showing strong growth in revenue and profitability.
Net revenue for the quarter reached C$615.7 million, a 15.3% increase from the same period last year, driven by growth in the U.S. and a successful fall product launch. However, the company issued a cautious forecast for the rest of the year, anticipating a softer performance in its Canadian market.
U.S. Growth Drives Q2 Results
Aritzia’s performance in the U.S. was a standout in the second quarter. Net revenue in the U.S. rose by 23.9% to C$345.4 million, accounting for more than half of the company’s total revenue. The growth was primarily fuelled by the opening of new stores and significant gains in e-commerce. Aritzia’s e-commerce revenue increased by 10.4% to C$190 million, while retail revenue saw a larger 17.6% increase to C$425.6 million. The strong demand for its fall catalog and a well-executed digital marketing strategy helped boost sales across both channels.
“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,” said Jennifer Wong, Aritzia’s Chief Executive Officer, in a statement.
Profitability and Margin Improvements in Q2 2025
Aritzia’s profitability saw a significant boost in Q2 2025. The company reported a net income of C$18.2 million, reversing a loss of C$6 million in the same quarter last year. Earnings per diluted share rose to 16 cents, compared to a 5-cent loss per share last year. Gross profit margin improved by 520 basis points, reaching 40.2%, up from 35% in Q2 2024. This was largely due to reduced markdowns, inventory management improvements, and lower warehousing costs.
Adjusted EBITDA for the quarter surged by 160.7%, reaching C$55.2 million, or 9.0% of net revenue. These results reflect Aritzia’s efforts to control costs while continuing to expand both its physical retail presence and online capabilities.
Cautious Outlook for Full-Year Fiscal 2025
Despite the strong second-quarter results, Aritzia issued a more cautious outlook for the remainder of fiscal 2025. The company expects third-quarter sales to be between C$675 million and C$700 million, falling below analyst expectations. Full-year revenue guidance was also revised downward, suggesting slower growth ahead as Aritzia faces a more challenging retail environment in Canada.
Looking ahead, Aritzia plans to continue its U.S. expansion, with 12 to 13 new stores expected to open by the end of fiscal 2025. The company is also focused on enhancing its digital presence, including the upcoming launch of a new and improved website.
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