Vancouver-based fashion retailer Aritzia has reported another stellar performance, marking its ninth consecutive earnings beat, according to a new report from Stifel Nicolaus Canada Inc. prepared by Managing Director Martin Landry. The Stifel analysis highlights a significant acceleration in both revenue and profitability, underscoring Aritzia’s strength as one of Canada’s most successful global retail brands.
The Aritzia earnings report revealed that earnings per share surged to $0.59, well above Stifel’s forecast of $0.41 and the consensus estimate of $0.39. This figure represents a dramatic 178% increase from the same quarter last year. Total revenue climbed 32% year-over-year to $812 million, exceeding expectations and continuing a streak of strong double-digit growth.
Comparable sales rose 21.6% year-over-year, the second-best performance in three years. “Results were strong all around, with comparable sales up 21.6% year-over-year,” Stifel wrote in its report, crediting the company’s loyal customer base and continued product resonance.
Canadian and U.S. Markets Fuel Record Growth
Aritzia’s growth story continues to play out across both its home market and south of the border. Sales in Canada rose 20.6%, an impressive figure for what Stifel characterized as a “mature market,” demonstrating that the brand continues to expand even in well-established regions.
Meanwhile, the company’s U.S. operations remain a major driver of growth. The Aritzia earnings report notes that management now sees the potential to grow its U.S. store network beyond 150 locations — a significant increase from the initial expansion target announced at its 2022 Investor Day. Aritzia executives hinted at the potential for as many as 200 U.S. stores, reflecting the brand’s growing awareness and momentum among American consumers.
The company’s U.S. presence continues to broaden into new markets, including Cincinnati, Pittsburgh, Raleigh, Salt Lake City, and Scottsdale, which will open this year. These new locations are expected to build on the brand’s already strong foothold in urban retail environments and affluent suburban centres.
Profitability Surges as Margins Expand
Aritzia’s second quarter results also demonstrate impressive profitability gains. The retailer’s gross margin rose 360 basis points year-over-year to 43.8%, surpassing both company guidance and Stifel’s estimate of 41.8%.
This expansion, the report explains, was supported by operational efficiencies, including the relocation of all U.S. fulfillment operations to Aritzia’s distribution centre in Ohio. This move effectively mitigated cost pressures associated with the de minimis exemption, which had previously affected Canadian exporters to the United States.
At the same time, SG&A expenses as a percentage of net revenue declined 150 basis points to 30.8%, helping lift the adjusted EBITDA margin to 15.1%, up more than 600 basis points year-over-year.
Adjusted EBITDA more than doubled, reaching $122.7 million, while net income rose 185% to $69.8 million. According to Stifel’s analysis, these results show strong execution and cost discipline, with the company maintaining healthy margins despite rising tariff pressures.
Guidance and Outlook: Aritzia Raises the Bar
Following these strong results, Aritzia increased its guidance for the next quarter. The company now expects Q3 FY26 revenue between $875 million and $900 million, surpassing both Stifel’s estimate of $850 million and the market consensus of $855 million.
Even as tariff headwinds have grown, now representing a 280-basis-point impact this fiscal year compared with 150 basis points previously, Aritzia maintained its EBITDA margin guidance. Stifel attributed this confidence to “management’s mitigation strategies and strong sales trajectory.”
The firm also expects the company’s momentum to continue post-quarter, noting that the upcoming launch of Aritzia’s mobile application could further strengthen customer engagement and digital sales.
Stifel Raises Target Price to $100
Reflecting Aritzia’s strong performance, Stifel Nicolaus Canada Inc. raised its target price from $96 to $100, maintaining its Buy rating on the stock.
In the Aritzia earnings report, Martin Landry wrote that the new target price reflects “higher forecasts combined with higher valuation multiples.” Stifel’s valuation approach includes three methods: applying a 28-times multiple to its FY27 EPS estimate, a 17.5-times multiple to the FY27 EBITDA estimate, and a discounted cash flow (DCF) calculation.
The analysts raised their FY26 revenue forecast to $3.36 billion (from $3.28 billion) and FY27 revenue forecast to $3.85 billion (from $3.69 billion). Adjusted EPS estimates were increased to $2.69 for FY26 and $3.60 for FY27, representing 5% and 3% upgrades, respectively.
The Stifel report also highlighted Aritzia’s robust financial position. The company holds no bank debt and has more than $350 million in cash, providing flexibility for expansion, investment, and potential share repurchases.
With its market capitalization now exceeding $10 billion, Aritzia is attracting more global investors and gaining visibility as a high-performing retail stock. Stifel noted that this liquidity and scale could make Aritzia increasingly appealing to large institutional funds seeking exposure to the Canadian consumer sector.
Product Strategy and Brand Appeal
Central to Aritzia’s success is its disciplined approach to product strategy and brand positioning. The retailer operates a portfolio of approximately 10 exclusive in-house brands, many of which have become staples for Canadian and American shoppers alike.
The Aritzia earnings report attributes part of the company’s recent sales growth to the strong performance of its summer and fall collections, which were well received by consumers. Aritzia’s concept of “everyday luxury,” offering high-quality apparel at attainable prices, continues to resonate with its core audience of women aged 15 to 45.
The company’s product catalogue now exceeds 3,000 styles across over 100,000 SKUs, offering a wide range of apparel that balances trend-driven items with proven classics. This mix has helped Aritzia sustain strong demand while reducing fashion risk.
E-Commerce and Omnichannel Strength
Aritzia’s e-commerce revenue grew 26.5% year-over-year, reaching $240.3 million, while retail revenue jumped 34.3% to $571.7 million. The combination of online and brick-and-mortar performance underscores the brand’s strength in omnichannel retailing.
The company’s ability to deliver a consistent and engaging experience across platforms remains a key differentiator. Stifel analysts noted that Aritzia’s ongoing digital investments are paying off, particularly in expanding its customer reach and engagement.
As Aritzia prepares to launch its mobile app, the retailer is expected to deepen its direct-to-consumer relationships, further enhancing its already loyal customer base.
FY27 Targets Regain Credibility
At its 2022 Investor Day, Aritzia outlined an ambitious four-year plan targeting $3.5 to $3.9 billion in revenue and a 19% EBITDA margin by FY27. While investors were skeptical following challenges in FY24, Stifel now believes these targets are realistic and attainable.
“Given the recent sales performance and margin recovery, these targets now appear more achievable,” the report said. “As visibility improves, we expect earnings estimates to rise further.”
Comparable sales growth above 18% for three consecutive quarters demonstrates the company’s ability to sustain strong momentum even as competitors struggle with softer demand.
Risk Factors: Tariffs and Macro Headwinds
Stifel’s report also outlined several potential risks that could affect Aritzia’s future performance. Chief among these are U.S. tariffs on Canadian imports, which could increase product costs and impact consumer pricing in the U.S. market.
The report also pointed to the risk of slowing brand momentum, currency fluctuations, and economic uncertainty stemming from inflation and interest rate pressures.
Nevertheless, Stifel believes Aritzia’s strong balance sheet and loyal customer base give it a cushion against these challenges. “Aritzia has significant momentum currently as its products are well received, and digital marketing investments are paying off,” the analysts wrote.
Aritzia’s stock closed at $79.54 on October 9, 2025, following a 52-week range of $37 to $90. With Stifel’s raised target of $100, the firm projects meaningful upside as investor confidence grows.
The Aritzia earnings report reinforces the retailer’s position as one of Canada’s most dynamic public companies. Stifel’s sustained Buy rating reflects expectations for continued share price appreciation as the company maintains strong revenue growth, margin expansion, and operational excellence.
Aritzia’s Expanding International Story
Founded in Vancouver in 1984, Aritzia has grown into a major North American fashion force, operating 134 corporate stores and an increasingly dominant online business. Approximately 65% of total revenue comes from retail stores, with the remainder generated through digital channels.
The company’s measured approach to expansion, combined with an emphasis on premium experiences and design-led spaces, has set it apart from fast fashion peers. Its store network, now spanning both top-tier malls and lifestyle centres, is central to its long-term strategy.
As Stifel’s Martin Landry and his team emphasized, Aritzia’s “significant momentum” is being driven by loyal customers, strong product execution, and disciplined financial management. With comparable sales growth, margin expansion, and new U.S. market opportunities, Aritzia is well positioned to sustain its upward trajectory.
