Aritzia Inc., a design house with an innovative global platform offering Everyday Luxury™ online and in its boutiques, Thursday announced its financial results for the fourth quarter and full year ended March 2, 2025, saying the results underscore the strength of its business.
“Our results for the fourth quarter and full year Fiscal 2025 underscore the strength of our business and growing affinity for the Aritzia brand. We delivered outstanding fourth quarter net revenue growth of 38%, excluding the 53rd week in Fiscal 2024, and comparable sales growth of 26%,” said Jennifer Wong, Chief Executive Officer.
“Underpinned by our assortment of beautiful products, optimized inventory position and strategic marketing investments, we fueled accelerated momentum in eCommerce and continued to execute our real estate expansion strategy, including the opening of our iconic Fifth Avenue flagship in Manhattan. Our results were primarily driven by our performance in the United States, where net revenue increased a tremendous 56% excluding the extra week. We also delivered further improvement in our Adjusted EBITDA margin, which increased more than 700 basis points in the fourth quarter.
“We continue to see strong momentum in the first quarter of Fiscal 2026, fueled by a positive client response to our Spring/Summer product and our optimized inventory position. The strength of our brand, quality of our assortment and our Everyday Luxury™ client experience are all resonating exceptionally well, giving us confidence in our ability to capitalize on the opportunities that lie ahead. Given the recent tariff developments, it’s clear we’re operating in a dynamic environment. Our successful 40+ year track record across varying economic climates demonstrates our ability to pivot and adapt. We have a healthy balance sheet and are well-positioned to navigate the evolving macroeconomic conditions, while remaining steadfast in advancing our key growth levers.”
Fourth Quarter Highlights
For the thirteen weeks of Q4 2025, compared to the fourteen weeks of Q4 2024:
- Net revenue increased 31.3% to $895.1 million, with comparable sales growth of 26.0%
- United States net revenue increased 48.5% to $548.0 million, comprising 61.2% of net revenue
- Retail net revenue increased 24.2% to $517.1 million
- eCommerce net revenue increased 42.4% to $378.1 million, comprising 42.2% of net revenue
- Gross profit margin increased 420 bps to 42.5% from 38.3%
- Selling, general and administrative expenses as a percentage of net revenue decreased 140 bps to 27.5% from 28.9%
- Adjusted EBITDA increased 121.8% to $160.9 million. Adjusted EBITDA as a percentage of net revenue increased 740 bps to 18.0% from 10.6%
- Net income increased 311.6% to $99.6 million, or 11.1% as a percentage of net revenue. Net income per diluted share was $0.84 per share, compared to $0.21 per share
- Adjusted Net Income increased 156.5% to $98.0 million. Adjusted Net Income per Diluted Share was $0.83 per share, compared to $0.34 per share
The company said Strategic Accomplishments for Fiscal 2025 include: Drove a 19% increase in net revenue (excluding the 53rd week in Fiscal 2024), resulting in a strong 5-year compound annual growth rate (“CAGR”) of 23%; Optimized the composition and quality of the Company’s inventory position, which fueled an acceleration in comparable sales growth in each quarter of the fiscal year and helped generate meaningful gross margin expansion; increased investments in digital and brand marketing to help protect and propel the Aritzia brand, grow awareness and generate new client acquisition; opened 12 new boutiques and repositioned three existing boutiques, including three iconic, brand-propelling flagship locations – two in Manhattan and one in Chicago; launched an improved aritzia.com, featuring an elevated client experience, including greater personalization and enhanced product discovery, and facilitating the seamless integration of a planned customer mobile app; and delivered a 550 basis point improvement in Adjusted EBITDA as a percentage of net revenue, driven by IMU improvement, lower markdowns, lower warehousing costs and savings from the company’s smart spending initiative.
“Based on quarter-to-date trends, Aritzia expects net revenue in the range of $620 million to $640 million (in the first quarter Fiscal 2026), representing growth of approximately 24% to 28%. The Company expects gross profit margin to increase approximately 200 bps and SG&A as a percentage of net revenue to decrease approximately 100 bps for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025. The Company expects Adjusted EBITDA as a percentage of net revenue to be approximately 14% for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025,” it explained.
“While the Company’s momentum across channels and geographies remains strong year to date, the outlook for Fiscal 2026 accommodates for a range of scenarios given uncertainties related to the broader macroeconomic environment, including tariffs.”
Aritzia said it expects the following for Fiscal 2026:
- Net revenue in the range of $3.05 billion to $3.25 billion, representing growth of approximately 11% to 19% from Fiscal 2025. This includes the contribution from retail expansion with a minimum of 12 new boutiques and five boutique repositions, including four new boutiques and one reposition in the first half of the fiscal year. Ten new boutiques and two repositions are expected to be in the United States with the remainder in Canada.
- Adjusted EBITDA as a percentage of net revenue to be approximately 14% to 15% compared to 14.8% in Fiscal 2025, driven by IMU improvements, freight tailwinds, savings from the Company’s smart spending initiative and expense leverage, offset by the higher US tariffs.
- Capital cash expenditures (net of proceeds from lease incentives) of approximately $180 million. This includes approximately $110 million related to investments in new and repositioned boutiques expected to open in Fiscal 2026 and Fiscal 2027, as well as $70 million primarily related to the Company’s distribution centre network, including its new facility in the Vancouver area, and technology investments.
- Depreciation and amortization of approximately $110 million.
“For the period from Fiscal 2024 to Fiscal 2027, the Company now expects capital cash expenditures (net of proceeds from lease incentives) of approximately $750 million compared to its prior assumption of approximately $500 million, primarily due to increased square footage growth and currency headwinds.”
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