Aritzia Inc., a design house with an innovative global platform offering Everyday Luxury™ online and in its boutiques, announced Thursday its financial results for the first quarter ended June 1, 2025.
“We achieved net revenue of $663 million in the first quarter of Fiscal 2026, a 33% increase compared to last year. Comparable sales grew 19%, fueled by double-digit growth in all channels and all geographies. Our results were driven by the strong performance of our Spring/Summer product, which resonated exceptionally well with our clients, as well as our optimized inventory position, strategic marketing investments and our new and repositioned boutique openings. Growth was consistent across channels, with net revenue increasing 34% in retail and 30% in eCommerce, underscoring the broad strength of our multi-channel business. Our performance in the United States, where net revenue increased a tremendous 45%, continued to fuel our results,” said Jennifer Wong, Chief Executive Officer. “In addition, we generated meaningful gross profit margin expansion and SG&A leverage, resulting in outstanding adjusted EPS growth of over 90%.
“Trends across the business remain strong, and we are pleased with the start to our second quarter. We continue to navigate macro developments from a position of financial and operational strength, as we adapt to the environment around us and execute across our key strategic growth levers – geographic expansion, digital growth and increased brand awareness. The strength of the Aritzia brand has never been greater, and yet we still have a long runway for growth in the United States. This gives me great confidence in our ability to execute and capitalize on all of the opportunities that lie ahead.”
First Quarter Highlights
For Q1 2026, compared to Q1 2025:
- Net revenue increased 33.0% to $663.3 million, with comparable sales growth of 19.3%
- United States net revenue increased 45.1% to $413.0 million, comprising 62.3% of net revenue
- Retail net revenue increased 34.2% to $480.3 million
- eCommerce net revenue increased 30.0% to $183.0 million, comprising 27.6% of net revenue
- Gross profit margin increased 320 bps to 47.2% from 44.0%
- Selling, general and administrative expenses as a percentage of net revenue decreased 190 bps to 33.5% from 35.4%
- Adjusted EBITDA increased 76.9% to $95.3 million. Adjusted EBITDA as a percentage of net revenue increased 360 bps to 14.4% from 10.8%
- Net income increased 167.7% to $42.4 million, or 6.4% from 3.2% as a percentage of net revenue. Net income per diluted share was $0.36 per share, compared to $0.14 per share in Q1 2025
- Adjusted Net Income increased 97.4% to $49.3 million. Adjusted Net Income per Diluted Share was $0.42 per share, compared to $0.22 per share in Q1 2025
Aritzia said it expects the following for the second quarter of Fiscal 2026:
“Based on quarter-to-date trends, Aritzia expects net revenue in the range of $730 million to $750 million, representing growth of approximately 19% to 22%. The Company expects gross profit margin to increase approximately 100 bps and SG&A as a percentage of net revenue to decrease approximately 100 bps for the second quarter of Fiscal 2026 compared to the second quarter of Fiscal 2025,” it said.
“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 $3.10 billion to $3.25 billion, representing growth of approximately 13% to 19% from Fiscal 2025. This includes the contribution from retail expansion with a minimum of 12 new boutiques and five boutique repositions. Eleven 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 15.5% to 16.5% 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 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. It also includes approximately $70 million 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.
- Foreign exchange rate assumption for Fiscal 2026 USD:CAD = 1.37.
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